Use These Earnings Reports In Your Trading On Thursday
Stocks rose Wednesday
as Alan Greenspan spoke before the Senate Banking Committee and said that the US
economy has entered a period of more vigorous expansion and may require higher
interest rates “at some point.” He ruled out an immediate increase, saying that
growth hasn’t resulted in “broad-based” inflation. The Mortgage Bankers Association’s Applications Index fell for the
fifth straight week
as 30-year fixed-rate mortgages rose to 5.84%
from 5.77% the week before.
Ford Motor
(
F |
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PowerRating) posted
earnings that more than doubled to $1.95 billion on strong gains in its
automotive business. Ford was able to slash costs by $600 million. The company
upped full-year earnings forecasts to $1.55 a share. Motorola
(
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surprised Wall Street by earning $609 million with revenue up a whopping 42% to
$8.6 million, well ahead of estimates. MOT is trading up 18%. Its handset
division experienced a 67% increase in sales with profits that more than
tripled. The semiconductor unit reversed course and went back to the black,
earning $ 107 million with sales up 21% to $1.4 billion.
Sanjay Kumar resigned as
Computer Associates
(
CA |
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PowerRating) chairman and CEO. The company was the subject of
a long-running criminal investigation of its accounting practices.
Dow | +2.77 | 10317.27 |
S&P 500 |
+5.94 | 1124.09 |
Nasdaq | +17.00 |
1995.63 |
The day’s leading sectors were
Airlines
(
XAL.X |
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PowerRating) +2.46%, Networking
(
NWX.X |
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PowerRating)
+1.99%, Healthcare
(
HMO.X |
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Chart |
News |
PowerRating), +1.89%, Semis
(
SOX.X |
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PowerRating)
+1.92%.
Weak today were Amex Gold
Bugs
(
HUI.X |
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Chart |
News |
PowerRating) -1.42%, Gold and Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -1.45%.
After the close, eBay
(
EBAY |
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PowerRating)
Q1 rose 92%, beating by 0.05. The company also raised guidance, Starbucks
(
SBUX |
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PowerRating) beat by 0.02; revenues rose 30% year/year. eResearch
(
ERES |
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PowerRating)
beat by 0.02, guided Q2 higher and announced a 3:2 split.
KLA-Tencor
(
KLAC |
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PowerRating)
beat by 0.04; revenues rose 28%; Atmel
(
ATML |
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PowerRating) beat by 0.02;
Juniper
(
JNPR |
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PowerRating) beat by a penny; CACI International
(
CACI |
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PowerRating)
beat by 0.03 and guided Q4 higher; Broadvision
(
BVSN |
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PowerRating) missed by
0.04; Yum Brands
(
YUM |
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PowerRating) beat by 0.02; Chiron missed by 0.05;
Veritas
(
VRTS |
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PowerRating) beat by 0.02; Capital One
(
COF |
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PowerRating) beat by 0.32;
Wellpoint
(
WLP |
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PowerRating) beat by 0.21, ex-items; Qualcomm
(
QCOM |
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PowerRating)
beat by 0.05.
The dollar
was +0.55 at 91.12
Gold was +0.09 at 390.36
Crude Oil was -0.75 at
35.73
Volume was
1,724,322,000 on
the NYSE, and 2,084,631,000 on the Nasdaq.
Market breadth was negative.
NYSE | Issues | |
Advancing |
1560 | Up Vol 1077 |
Declining | 1771 | Down Vol 639 |
Ratio | 1.13 | 1.68 |
Nasdaq |
||
Advancing |
1880 | Up Vol 1382 |
Declining |
1262 | Down Vol 661 |
Ratio | 1.49 | 2.09 |
Stocks in the news:
Teradyne
(
TER |
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PowerRating) posted net income of $40.2 million
with sales up at $430.6 on strong demand for its test and measurement equipment.
For the next quarter, it expects earnings to reach 35 cents with sales exceeding
$500 million.
Kodak
(
EK |
Quote |
Chart |
News |
PowerRating) earnings more than tripled from strong
digital camera sales and a declining dollar. Profits rose to $28 million with
revenue up to $2.92 billion.
United Technologies
(
UTX |
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Chart |
News |
PowerRating) earned $579 million in
the first-quarter with sales up $ 29% to $8.6 billion, both ahead of Wall Street
consensus.
Warren Buffett was re-elected to the Coca-Cola
(
KO |
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PowerRating)
board after the company reported earnings that rose to $1.13 billion with sales
up to $5.08 billion. Its international sales were strong, with a 4% volume growth
in Europe, 14% 16% in Argentina and in China.
Brice Wightman
bricew@tradingmarkets.com