Ouch! Down $5 After The Close…
Stocks skidded
Wednesday, with the Dow closing just above the 10,000 level. The
major indices gapped higher, slid most of the morning where they paused, and
then fell sharply midday when oil and heating oil staged a rally. The SPX closed
below its 200-day moving average.
Intel (INTC)
reported $0.26 vs. $0.27 estimate, in-line, after a tax benefit. Revenues were
$8.5 billion Gross margins were 55.7%. INTC closed at 21.02, up 0.74.
Yahoo (YHOO)
was in-line at 0.09 and guided in-line. Revenue was $655 million, slightly
higher than consensus. YHOO closed at 34.94 up 0.71.
McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating)
says Q3 will come in at 0.61. Analysts were expecting 0.49. U.S. same store
sales rose 10.6%
Crude oil jumped on winter fuel
supply worries. Key inventory data is due out Thursday. API said that refineries
were working at 90% of capacity in September. A seat on the NYMEX sold for
$2 million, the highest
price paid for a seat on any exchange; the previous record was $1.65 million on
May 2. Compare this with a NYSE seat, which recently sold for $1.2
million.
Have commodity stocks
peaked? They are lower today, notably copper stocks. BHP Billiton PLC
(
BHP |
Quote |
Chart |
News |
PowerRating) said that copper supply worldwide would exceed demand in the
second half of 2005 as more production comes online.
The International Copper Study Group said that Chinese copper consumption
fell 21% in July year/year. Copper and aluminum prices fell dramatically today.
Energy stocks, too, are lower today, as are oil shipping companies and steel
companies.
Google
(
GOOG |
Quote |
Chart |
News |
PowerRating) founders Larry Page and Sergey Brin are in
Bangalore India today, where they plan to hire engineers and online and sales
support staff. Larry Page told the Hindustan Times, “Going forward, we will be
looking for more people at many different locations. We will be hiring a lot of
bright engineers in the next two-three years.”
After the close, Apple
(
AAPL |
Quote |
Chart |
News |
PowerRating) reported 0.27 vs. a 0.18 estimate
(0.26 adjusted for dilution). Revenues were $2.35 billion vs. a $2.15 billion
estimate. The company shipped over 2 million iPods, more than the 1.45 million
consensus. The stock traded up after hours.
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) was in-line, with revenues of 415.9 million, better
than expected. Margins were 48.4%. QLogic
(
QLGC |
Quote |
Chart |
News |
PowerRating) beat by 0.04.
Sandisk
(
SNDK |
Quote |
Chart |
News |
PowerRating) missed by 0.05; the stock fell $5 in after hours
trading. Lam Research
(
LRCX |
Quote |
Chart |
News |
PowerRating) beat by 0.06 and announced a $250
million share buyback. Network Equipment
(
NWK |
Quote |
Chart |
News |
PowerRating) beat by 0.08.
Tomorrow morning, look for earnings from General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), 0.96,
Bank of America
(
BAC |
Quote |
Chart |
News |
PowerRating), 0.90, Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) 0.99 (estimate
follows the symbol).
| Dow | -74.85 | 10002.33 |
| S&P 500 | -4.64 | 1113.64 |
| Nasdaq | -4.64 | 1920.53 |
Strong sectors were:
Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) +2.08%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +1.78%, Internet
(
GIN.X |
Quote |
Chart |
News |
PowerRating) +0.75%.
Weak sectors were:Â Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating)
-2.88%, Natural Gas
(
XNG.X |
Quote |
Chart |
News |
PowerRating) -2.47%, Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating) -2.41%.
10-year notes were: +085
at 113 030
The dollar
was -0.14 at 87.88
Gold was +1.10 at 410.30
Crude Oil was +1.00 at 53.18
1.50 billion on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1082 | Up Vol 341 |
| Declining | 2217 | Down Vol 1029 |
| Ratio | 2.04 | 3.01 |
| Nasdaq |
||
| Advancing | 1223 | Up Vol 879 |
| Declining | 1860 | Down Vol 727 |
| Ratio | 1.52 | 1.20 |
Stocks in the News
Accenture
(
ACN |
Quote |
Chart |
News |
PowerRating) beat by 0.02.
Harley Davidson
(
HDI |
Quote |
Chart |
News |
PowerRating) is seen reporting 0.75 for Q3.
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) won a $776 contract with to build three X-45C pilotless
planes.
California Amplifier (CAMP)
missed by 0.03 and guided in-line.
Borders
(
BGP |
Quote |
Chart |
News |
PowerRating) cut its 2004 forecast.
Linear Technology
(
LLTC |
Quote |
Chart |
News |
PowerRating) guided Q2 lower.
Cell Genesis
(
CEGE |
Quote |
Chart |
News |
PowerRating) warned.
Jones Apparel
(
JNY |
Quote |
Chart |
News |
PowerRating) warned and now sees Q3 EPS at 0.75-0.77.
Atherogenics
(
AGIX |
Quote |
Chart |
News |
PowerRating) said a trial of its rheumatoid arthritis drug
failed.
WebMethods
(
WEBM |
Quote |
Chart |
News |
PowerRating) guided higher.
PEC Solutions (PECS)
won a $6 million contract with the Department of Education.
NABI Biopharma (NABI)
received a fast track designation for StaphVAX®.
Brice Wightman