RIMM Down Big After Hours–Here’s Why
Stocks were higher on good reports from two large
brokers. Bear Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating) reported 2.61 vs a 2.14
estimate. This beat by 0.47. Revenue was $2.38 billion. Morgan Stanley
(
MWD |
Quote |
Chart |
News |
PowerRating) reported 1.09 vs a 1.01 estimate. Revenue was $5.45 billion. This as
Wall street continues to shrink–automation is up, trading commissions are
dropping and the industry is becoming more of a commodity business
The Dow made a 3 1/2 year high; the last time we were at these levels was
June 2001. The Dow Transports hit a historic high. The Nasdaq hit 3 1/2 year
highs last week.
Trader talk: fund flows are strong, sentiment is improving, IPOs are closing the
year very strong and the M&A climate is improving.
The FDA issued a heart risk warning for Naproxen, marketed by Bayer AG as
Aleve. This comes on the heels of a warning on Celebrex. Today,
Pfizer pointed to a National Institute of Health study that shows patients
taking Celebrex have no increased risks.
CSFB raised its target on Apple
(
AAPL |
Quote |
Chart |
News |
PowerRating) to $70. Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) was raised to overweight from equal weight at Lehman.
Lawyers who handled the Enron bankruptcy billed $780 million. The lead
attorney billed $5 million for 7000 hours of work.
IAC/Interactive
(
IACI |
Quote |
Chart |
News |
PowerRating) will split off its travel unit, Expedia
and Hotels.com. Expedia generated $1.8 billion revenue for the 12 months ended
September 30. Barry Diller will be the controlling shareholder of both
companies.
After the close, Research in Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating) beat by 0.03 and
guided Q1 higher; revenue was $365.9 vs $364 consensus. Blackberry shipments
were less than expected; the stock traded down after hours. Applied Signal
(
APSG |
Quote |
Chart |
News |
PowerRating) missed by 0.07.
Strong sectors were: Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) +2.82%, Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.68%, Banks
(
BIX.X |
Quote |
Chart |
News |
PowerRating) +1.38%.
| Dow | +100.12 | 10,761.72 |
| S&P 500 | +10.90 | 1205.55 |
| Nasdaq | +23.10 | 2,150.95 |
The dollar was +0.26 at
81.96
Crude Oil was flat at
45.78
Gold was -1.20 to 441.30
1.96 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2324 | Up Vol 1057 |
| Declining | 1018 | Down Vol 284 |
| Ratio | 2.18 | 3.72 |
| Nasdaq |
||
| Advancing | 1980 | Up Vol 1342 |
| Declining | 1152 | Down Vol 491 |
| Ratio | 1.71 | 2.73 |
Stocks in the News
Jabil Circuits
(
JBL |
Quote |
Chart |
News |
PowerRating) beat estimates but offered a weaker outlook.
Encysive Pharmaceuticals
(
ENCY |
Quote |
Chart |
News |
PowerRating) said their blood pressure drug
was not effective at lower doses.
Silicon Storage
(
SSTI |
Quote |
Chart |
News |
PowerRating) said Q4 revenue would miss.
GTech
(
GTK |
Quote |
Chart |
News |
PowerRating) warned for next quarter.
This Day in History
1913 First crossword puzzle
Brice Wightman