Look Who Beat Estimates After The Close

August 7, 2003
Brice Wightman

The retail index
(
$RLX.X |
Quote |
Chart |
News |
PowerRating)
bounced off support at its 50-day moving average. Its next area of resistance
comes in at the 340 level. Productivity surged in the second quarter. Meanwhile
initial jobless claims came in under the critical 400,000 level for the third
straight week. Bonds are slightly lower after the positive economic reports.

In economic news today,
Initial Jobless Claims for the week ended August 2 fell by 3,000 to 390,000.
Claims are at the lowest level since February 8. Economists had expected claims
to come in at 395,000. The closely watched four-week moving average fell to
397,250. This was the first sub 400K reading since February 15th.
Productivity for Q2 came jumped 5.7% compared to an expected rise of 4%.
Lastly Wholesale Inventories in June came in flat as expected.

The 10-year U.S. Note
was -085 at 112 150.

The dollar was -0.41 at
95.82.

Gold was +1.70 at
353.00.

Crude Oil was+0.69 at
32.39.

Volume was
1,367,673,000 on
the NYSE, and 1,638,317,000 on the Nasdaq.

Market breadth was mixed,
with NYSE advancing issues over declining issues by 1.65, and up volume over
down volume by 1.65. Nasdaq declining issues over advancing issues at 1.12, and
down volume over up volume at 1.67.

Top Dow stocks were:

Stocks in the news:

Apparel retailer American
Eagle Outfitters
(
AEOS |
Quote |
Chart |
News |
PowerRating) fell 16% after the company
reported much worse-than-expected July same-store sales. The company reported a
10.5% drop in July same-store sales, analysts had been looking for a 3.7% drop.
American Eagle will report its second-quarter results on August 14.

Drug maker Amylin
Pharmaceuticals
(
AMLN |
Quote |
Chart |
News |
PowerRating) rose after the company announced
positive results for its experimental diabetes drug, Exenatide. The trial was
“statically significant” in reducing glucose levels set by American Diabetes
Association. Amylin is developing the drug with Eli Lilly.

Ann Taylor Stores
(
ANN |
Quote |
Chart |
News |
PowerRating)
gained after the company raised its second-quarter guidance. The
company now sees earnings between 44 to 45 cents a share compared to consensus
estimates of between 39 to 41 cents a share. Ann Taylor also reported a 7.6%
jump in same-store sales.

Electronics retailer Best
Buy
(
BBY |
Quote |
Chart |
News |
PowerRating) rose 14% after the company raised second-quarter
and full-year guidance. Due to higher same-store sales, improved cost control,
and sales of higher margin merchandise, the now sees second-quarter results
between 37 to 42 cents a share and full year results between $2.27 and $2.32 a
share. Previously, Best Buy expected second-quarter and full-year results of 27
to 32 cents a share and $2.17 to $2.22 a share, respectively.

Department store operator
Federated Department Stores
(
FD |
Quote |
Chart |
News |
PowerRating) added 1.74 after reporting a 0.4%
slip in July same-store sales. However this was better than an anticipated 1% –
2% drop. Federated also raised its second-quarter outlook from between 50 to 55
cents a share to between 60 to 63 cents a share.

Retail giant Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating)
rose after the company reported a 4.5% jump in same-store sales or
above its own forecast of 2 to 4 percent. The Dow component also said that it
expects to earn 52 cents for the second quarter or a penny above current
estimates.

If you have any comments or
questions, please feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

Look Who Beat Estimates After The Close

BUY THE FEAR, SELL THE GREED

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