Three Steps And A Stumble? Read This…
Stocks were lower
Wednesday–with the Dow down by triple digits–led by disappointing earnings
from Morgan Stanley and a Cisco downgrade.
Higher oil prices added to the downside pressure on stocks. A sharp fall in
crude inventories due to Hurricane Ivan sent oil near $47.
Morgan Stanley
(
MWD |
Quote |
Chart |
News |
PowerRating) missed, reporting 0.76 vs. a 0.95 estimate.
Trading revenues fell 62%. Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating) was downgraded at Deutsche
Bank.
The yield on the 10-year note fell below 4% for
the first time since April 1.
The FCC fined Viacom $550,000–$27,500 for
each affiliate–for airing the infamous Super Bowl halftime show featuring the
Janet Jackson “wardrobe malfunction.” It was the largest find for indecency on
television.
A study by the Leuthold Group showed that
since 1946, in the year following a third rate hike, stocks have lost an average
of 2.7%.
Trader talk: The number of companies issuing
earnings warnings is on the rise.
American Airlines
(
AMR |
Quote |
Chart |
News |
PowerRating) said a fare
hike is necessary to pay for higher fuel costs. One way tickets will increase by
$5; round trip tickets by $10.
Former Computer Associates chairman Sanjay
Kumar was indicted on securities fraud and obstruction of justice; the company
will pay a $225 million fine as part of a settlement.
Conoco Phillips
(
COP |
Quote |
Chart |
News |
PowerRating) raised its
quarterly dividend by 16%.
After the close, Bed Bath & Beyond
(
BBBY |
Quote |
Chart |
News |
PowerRating)
beat by a penny. Cognos
(
COGN |
Quote |
Chart |
News |
PowerRating) beat by 0.04 and guided higher.
Merix
(
MERX |
Quote |
Chart |
News |
PowerRating) beat by 0.02.
| Dow | -135.75 | 10109.18 |
| S&P 500 | -15.74 | 1113.56 |
| Nasdaq | -35.47 | 1885.71 |
Weak sectors were: Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating)
-2.97%, Airliness
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -2.30%, Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating) -2.66%.
There were no sectors in the
green.
10-year Notes were +095 at 113 190
The dollar
was +0.40 at 88.53
Gold was -0.70 at 407
Crude Oil was +1.62 at 48.38
Volume was 620 million on
the NYSE and 775 million on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 809 | Up Vol 637 |
| Declining | 2318 | Down Vol 2257 |
| Ratio | 2.86 | 3.54 |
| Nasdaq |
||
| Advancing | 79 | Up Vol 171 |
| Declining | 480 | Down Vol 554 |
| Ratio | 6.07 | 3.23 |
Stocks in the News
Bear Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating) beat, reporting $2.09 vs. $1.98.
Federal Express’
(
FDX |
Quote |
Chart |
News |
PowerRating) profits more than doubled.
Autozone
(
AZO |
Quote |
Chart |
News |
PowerRating) missed and was light on revenues.
Eastman Kodak
(
EK |
Quote |
Chart |
News |
PowerRating) backed its forecast, saying sales of digital
products are growing faster than expected.
General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) will cut 3,000 European jobs.
Jabil Circuits
(
JBL |
Quote |
Chart |
News |
PowerRating) beat by a penny.
Christopher & Banks
(
CBK |
Quote |
Chart |
News |
PowerRating) was in-line, but sales fell short of
estimates.
Lucent
(
LU |
Quote |
Chart |
News |
PowerRating) is planning cuts in retiree health care benefits.
Interstate Bakeries
(
IBC |
Quote |
Chart |
News |
PowerRating) filed for bankruptcy.
Biomarin (BMRN)
guided lower for 2004.
Brice Wightman