Tech Estimates For Q3: Are They Realistic?
Stocks are lower
Thursday,
after
Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating) pre-announced, saying earnings will be weaker
than expected; weakness in servers and storage; the company announced layoffs.
Q3 tech estimates are coming down, according to Thomson, to 35% from 38% on July
1.
Retail sales July +0.7%, a disappointment;
ex-auto was +0.2%, also less than expected. Import prices July rose 0.2%; export
prices were up 0.4%. Jobless claims fell 4000 to 333,000, better than expected;
the 4-week moving average fell 4250 to 339,250
China CPI in July rose 5.3%, the biggest year
over year jump since 1997. South Korea unexpectedly cuts rates to a record low
of 3.5%, citing weak consumer demand.
| Dow | -105.22 | 9833.10 |
| S&P 500 | -10.14 | 1065.65 |
| Nasdaq | -26.73 | 1755.69 |
Strong today are: Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating)
+0.53%, Pharmaceuticals
(
DRG.X |
Quote |
Chart |
News |
PowerRating)
+0.13%.
Weak are: Software
(
GHA.X |
Quote |
Chart |
News |
PowerRating)
-4.57%, Disk Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) -3.52% and Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating)
-4.21%.
10-year Notes are +045 at 112 125
The dollar
is -0.08 at 88.77
Gold is -1.80 at 394
Crude Oil is +0.90 at
45.60
Volume is 1.08 billion
on the NYSE and 1.04 billion on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 961 | Up Vol 155 |
| Declining | 2216 | Down Vol 896 |
| Ratio | 2.30 | 5.78 |
| Nasdaq |
||
| Advancing | 744 | Up Vol 147 |
| Declining | 2229 | Down Vol 864 |
| Ratio | 2.99 | 5.87 |
Stocks in the News
Target
(
TGT |
Quote |
Chart |
News |
PowerRating) jump in Q2 earnings, in
part due to sale of Marshall Fields unit. The company eared $1.54, up from 0.39
a year ago.
Dell
(
DELL |
Quote |
Chart |
News |
PowerRating)Â will report tonight
after the close, estimates are 0.31; the company raised guidance just 2 weeks
ago.
Wal-Mart {WMT|WMT]Â beat by a penny
and said it is on track for another record year. The CEO said he was
“optimistic” about consumer spending.
ASML
(
ASML |
Quote |
Chart |
News |
PowerRating) fell after Deutsche took
the stock off its focus list because of slowing earnings momentum.
Pep Boys missed by 0.29. With higher gas
prices, people are driving less, causing les swear and tear on their cars.
IBM said it will add 18,000 workers in
2004, making its work force the biggest since 1991; the company cited growth in
key areas.
KMart
(
KMRT |
Quote |
Chart |
News |
PowerRating) will be added to the NDX,
replacing PanAm Satellite
(
SPOT |
Quote |
Chart |
News |
PowerRating).
Tiffany’s
(
TIF |
Quote |
Chart |
News |
PowerRating) missed by 0.04; net
was down 11%; the company cut its 2005 view
Brice Wightman