The Intel Numbers

October 14, 2003
Brice Wightman

Stocks rose
Tuesday. After setting
multi-month milestones yesterday, the major indices are slightly lower.
Better-than-expected earnings from Merrill Lynch
(
MER |
Quote |
Chart |
News |
PowerRating) and JB Hunt
(
JBHT |
Quote |
Chart |
News |
PowerRating)
are failing to inspire more buyers as many experts are saying that the market
has already priced in the earnings news. More than half of the S&P 500 will
release their third-quarter results over the next two weeks. Both Intel
(
INTC |
Quote |
Chart |
News |
PowerRating)
and Teradyne
(
TER |
Quote |
Chart |
News |
PowerRating) are set to report after the close. Consensus estimates
are calling for earnings of 23 cents on Intel and a loss of 14 cents on
Teradyne. Bonds are lower today after yesterday’s Columbus Day holiday.

The Dow has closed at market highs six of the last 10 trading days, and for
October has gained 500 points, +5.6%. The last time the Dow closed above 9800
was 5/31/02. The Nasdaq is up 8.6% for October, and the last time it closed
above 1940 was January 2002.

No economic releases today;
tomorrow, look for retail sales, the NY Empire State Index, as well as the
Fed Beige Book.

Bonds were -1 07 at 116
29.

Dollar was +0.06 at
91.95.

Gold was +1.40 at 375.40.

Crude Oil was -0.18 at
31.93.

Volume was
1,251,865,000 on
the NYSE, and 1,734,649,000 on the Nasdaq.

Market breadth was mixed,
with NYSE declining issues over advancing issues by 1.22 and down over up volume
by 1.19; Nasdaq advancing issues over declining issues at 1.70, and up volume
over down volume at 12.86.

Top Dow stocks were:

Stocks in the news:

Enterprise software maker
Documentum
(
DCTM |
Quote |
Chart |
News |
PowerRating) rose 17% after the company
announced that it will be acquired by EMC Corp.
(
EMC |
Quote |
Chart |
News |
PowerRating) in a $1.7 billion
stock deal. Under the terms, each share of Documentum will be exchanged for
2.175 EMC shares. Based on yesterday’s closing price, Documentum shareholders
will received an offering price of $31.43 a share. This was EMC’s second
acquisition in recent times, previously the company purchased Legato Systems.

DVD and Video rental chain
Hollywood Entertainment
(
HLYW |
Quote |
Chart |
News |
PowerRating) fell 5% after the
company announced a 36% drop in quarterly earnings. For its third quarter, the
company earned 32 cents a share compared to 50 cents a share in the year-ago
quarter. Sales rose 8.9% to $402 million. Looking ahead, the nation’s
second-largest rental chain is optimistic about its fourth quarter. CEO Mark
Wattles commented, “We think the fourth quarter is in good shape, and are more
enthusiastic about it than we were at the beginning of the year”. Major movie
studios are planning to release 14 tittles on both video and DVD that earned
more than $100 million each at the box office.

Diversified transportation
company JB Hunt
(
JBHT |
Quote |
Chart |
News |
PowerRating) lost 5% despite reporting
third-quarter results that nearly doubled. For its third quarter, the company
earned 40 cents a share or 8 cents above consensus estimates. In its third
quarter last year, the company earned 21 cents a share. Revenues rose 6.7% to
$622 million this too topped forecasts of $617 million.

Brokerage giant Merrill
Lynch
(
MER |
Quote |
Chart |
News |
PowerRating) fell 1.3% after despite reporting
better-than-expected quarterly results. The company reported a third-quarter
profit of $1.04 a share compared to 73 cents in the year-ago quarter. Consensus
estimates were calling for 86 cents a share. The firm cited cost-cutting as well
as strong bond trading for the increase in profits.

Before the open Wednesday, look
for earnings from the following companies (estimates immediately after): APH
.61, FBF .61, GD 1.24, GM .64, GENZ .34, HDI .56, TLAB -.06, UIS .11, WB .81.

If you have any comments or questions, please
feel free to email me.

Brice
Wightman

bricew@tradingmarkets.com

The Intel Numbers

BUY THE FEAR, SELL THE GREED

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