What Lifted The Markets Today
Reassuring earnings reports from Siebel Systems, Nokia, and EMC, along with
the lowest jobless claims numbers in almost six months, sent the market up on
the open. More fuel was added when Fed Chief Alan Greenspan said the economy
was firming.
The Dow rose 65.52 to 9796.48; the Nasdaq gained 20.38 to 1942.76; the
S&P 500 was up 4.01 to 1132.19.
EMC Corp.
(
EMC |
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PowerRating) reported a narrower-than-expected loss, and said it may
return to profitability as soon as Q2. EMC popped 2.27 to 16.83
Nokia
(
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expectations. Nokia gained 1.15 to 23.36.
Siebel Systems
(
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said last
night that he was optimistic about computer related spending for this year. SEBL
rose 2.09 to 36.89.
Greenspan’s remarks were nearly identical to a Jan. 11 talk, but he said that
he intentionally tried to make today’s speech sound more optimistic than
comments on Jan. 11. His prior reference to “significant risks” in the
economy was omitted. After today’s testimony, the likelihood of a twelfth rate cut
next week is slim.
Greenspan also made comments on defense spending, which lifted virtually all
defense companies. In response to a question, he said, “I happen to think
that defense expenditures have a very high priority at this particular stage and
you do what you have to do.” General Dynamics
(
GD |
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PowerRating) Rockwell
(
ROK |
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Lockheed Martin
(
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(
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Goldman Sachs’ Abby Joseph Cohen suggested that 2002 will see many write-offs
by corporations. This, she said, may make it harder for stocks to advance, as it
will give the impression that stocks are still struggling. “Many companies
are writing off not only the kitchen sink but the bathtub as well,” she
said.
Rational
(
RATL |
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(
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500. RATL added 1.18 to 24.11, and CPRT rose 1.21 to 22.91.
Amgen
(
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(
BBH |
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Gene-based drug-discovery equipment company Applied Biosystems
(
ABI |
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crushed after reporting a disappointing fiscal Q2, and warning for 2002.
ABI plunged 25% to 25.20.
Halliburton
(
HAL |
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PowerRating) Chairman Dave
Lesar indicated in a conference call that
the company had asbestos liability issue under control and that the
“discount to our stock is excessive.” HAL was the largest percent
gainer in the S&P 500, up 24% to 13.43.
Eastman Kodak
(
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PowerRating) warned and posted its first quarterly loss in five
years. The company said it would focus on EK closed up 1.74 to 28.24.
Thomson Financial/First Call reports that half of the S&P 500 companies
reporting fourth-quarter results, and profits have dropped 19.2%.
Starbucks
(
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PowerRating) reported .17, beating estimates by .02.
(
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beat by a penny, and Peoplesoft
(
PSFT |
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due today from
(
JDSU |
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(
HGSI |
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PowerRating) (-.27), and
(
QCOM |
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PowerRating) .23.