Lots Of Action After The Close
Stocks were
slightly higher Wednesday. General
Motors
(
GM |
Quote |
Chart |
News |
PowerRating) and Ford Motors
(
F |
Quote |
Chart |
News |
PowerRating) are offering more incentives
after a double-digit drop in June vehicle sales. GM raised its cash rebates for
most of its SUVs to $5,000 with Ford upping $1,000 to $4,000 amid rising oil
prices and competition from Asian manufacturers.
New applications for mortgages
rose 19.5% the week ending 7/2, with the housing sector still strong despite
rising interest rates. Chain store sales rose 0.9% for the week ended July 3.
PeopleSoft
(
PSFT |
Quote |
Chart |
News |
PowerRating) warned it may miss earnings forecasts citing
disruptions from Oracle’s
(
ORCL |
Quote |
Chart |
News |
PowerRating) hostile takeover attempt. The
company expects earnings of 4 cents on revenue of $660 million. NetEase
(
NTES |
Quote |
Chart |
News |
PowerRating)
dropped after the company warned it may miss revenue expectations on lower
sales.
Former Enron CEO Ken Lay
was indicted by a federal grand jury in Houston; Mr. Lay has made arrangements
to turn himself in to authorities tomorrow.
After the close, Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) reported Q2 at $0.08, in-line on $832 million revenue, but sees Q3
slower at $610 – $650 million. The company said FY04 revenue would be closer to
$2.5 billion, lower than expected. The stock traded down $4 after hours; some
traders were disappointed that the company did not make the whisper number of
0.09. Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating) reported $0.46 vs. a $0.48 cent estimate on revenue
of $6.1 billion vs. $6.04 billion estimate. Schnitzer Steel
(
SCHN |
Quote |
Chart |
News |
PowerRating)
beat by 0.12, but was light on revenues. Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating) reported
$0.19, in-line with estimates, with revenues +41%, and guided higher. Siebel
Systems
(
SEBL |
Quote |
Chart |
News |
PowerRating) was halted after the close; the company warned for Q2.
For Q2, the S&P tech sector is
expected to grow earnings by 57%, but some are wondering if the expectations are
too high.
| Dow | +20.95 | 10240.29 |
| S&P 500 | +2.12 | 1118.33 |
| Nasdaq | +2.65 | 1966.08 |
Strong today were: Gold and
Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating) +3.99%, Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +3.39%,
 Healthcare
(
HMO.X |
Quote |
Chart |
News |
PowerRating) +1.38%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +1.12%.
Weak today were: Brokers
(
XBD.X |
Quote |
Chart |
News |
PowerRating) -2.03%, Internet
(
ECM.X |
Quote |
Chart |
News |
PowerRating) -1.44%, Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating)
-1.01%.
10-year Notes were +010
at 110 135
The dollar
was -0.48 at 87.65
Gold was +7.80 at 401.90
Crude Oil was -0.49 at
39.08
Volume was 1.33 billion
on the NYSE, and 1.76 billion on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing | 2056 | Up Vol 780 |
| Declining | 1213 | Down Vol 512 |
| Ratio | 1.69 | 1.52 |
| Nasdaq |
||
| Advancing | 1428 | Up Vol 842 |
| Declining | 1632 | Down Vol 853 |
| Ratio | 1.14 | 1.01 |
Stocks in the news:
Secure Computing
(
SCUR |
Quote |
Chart |
News |
PowerRating) warned it may miss second-quarter forecasts as it now expects to
earn 5 cents a share on revenue of $22 million.
eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating) was downgraded by
Prudential to Neutral on valuation and growth concerns.
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) said it received
orders for 10 more 7E7 jetliners; the orders could be worth as much as $1.2
billion.
Brice Wightman
bricew@tradingmarkets.com