Reporting On Wednesday — 3 Names To Watch
Stocks fell
Tuesday on disappointing earnings guidance from two Nasdaq companies.
Both the Dow and the Nasdaq fell to two-month lows. In the worst pre-earnings
week in more than two years,
Veritas Software
(
VRTS |
Quote |
Chart |
News |
PowerRating) said that it would miss
quarterly results and announced preliminary EPS of 18 cents a share with revenue
in the $470 million range and license revenue at about $268 million, lower than
analysts’ estimates, and Conexant
(
CNXT |
Quote |
Chart |
News |
PowerRating) fell 42% after it cut its quarterly earnings forecast on weak demand
for wireless LAN products. It now expects revenue to be about $265 million with
EPS of 2 cents.
Crude prices jumped to a
one-month high as supply disruptions in Nigeria and Iraq added fuel to the
five-day rally.
Second quarter earnings growth
for the S&P is expected to be 25%. As of the end of last week, 83% of the
companies reporting Q2 beat by an average margin of 7.6%.
John Kerry picked
John Edwards to be his vice-presidential running mate.
After the close, JDA
Software [JDAS|JDAS} warned for Q2 and Netopia
(
NTPA |
Quote |
Chart |
News |
PowerRating) guided
below Q3. Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating) said it is closing 10 Canadian
colleges. Ascential Software
(
ASCL |
Quote |
Chart |
News |
PowerRating) warned for Q2. Tomorrow,
look for earnings from Yahoo! (0.08 estimate) Alcoa (0.47
estimate) and Genentech (0.19 estimate).
| Dow | -66.14 | 10216.84 |
| S&P 500 | -9.90 | 1115.39 |
| Nasdaq | -41.55 | 1965.10 |
Strong today were: Energy
(
DXE.X |
Quote |
Chart |
News |
PowerRating) +0.49%, Natural Gas
(
XNG.X |
Quote |
Chart |
News |
PowerRating)
+0.89%, Oil Index
(
XOI.X |
Quote |
Chart |
News |
PowerRating) +0.46%.
Weak today were: Disk Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) -4.19%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating)
-3.97%, Networkers
(
NWX.X |
Quote |
Chart |
News |
PowerRating) -3.67% and Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating)
-3.36%.
Economic news release today: a weak ISM services number at 59.5.
10-year Notes were -035 at 110 125
The dollar was -0.04 at 88.20
Gold was -4.70 at 392.20
Crude Oil was +1.21 at 39.60
Volume was 1.28 billion on the NYSE, and 1.94 billion on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1264 | Up Vol 284 |
| Declining | 2328 | Down Vol 988 |
| Ratio | 1.84 | 3.47 |
| Nasdaq |
||
| Advancing | 784 | Up Vol 148 |
| Declining | 2327 | Down Vol 1760 |
| Ratio | 2.96 | 11.89 |
Stocks in the news:
Lehman Brothers lowered its price target on Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) to $33 a
share and is upbeat on INTC delivering solid Q2 results.
KVH Industries
(
KVH |
Quote |
Chart |
News |
PowerRating) fell after it lowered
quarterly revenue forecasts to $14.2 million on lower sales and expects a loss
of $5.1 million.
Micromuse
(
MUSE |
Quote |
Chart |
News |
PowerRating) cut Q3 revenue numbers to $35 million on longer sales
cycles from delayed transactions. The company will report earnings on July 22.
Piper Jaffray raised its price target on Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) to $93 a
share on strong growth potential.
Brice Wightman
P.S. Sign up for the systems conference call Thursday,
here.