Why Did This Medical Stock Double?

July 19, 2004
Brice Wightman

Stocks were
mixed Monday as analysts seek to digest a full load of earnings reports this
week; more than one-third of the
companies in the S&P 500 report earnings this week.The S&P 500
(
SPX.X |
Quote |
Chart |
News |
PowerRating)
broke its pivotal 200-day moving average. 3M
(
MMM |
Quote |
Chart |
News |
PowerRating) reported earnings
of $0.97 a share and upped 2004 earnings targets to $3.72 a share for FY 2004.
Sales rose 9.5% to $5.01 billion with all of its seven business units reporting
gains. Internet stocks were weak, with Yahoo -3.7%. Chinese internets SINA and
CHINA made 52-week lows.

Fed Chairman Alan Greenspan is
expected to give his twice-yearly speech before the Senate Banking Committee
tomorrow.

NitroMed
(
NTMD |
Quote |
Chart |
News |
PowerRating)
more than doubled after an independent committee recommended that trials of the
drug be stopped and it be given to members of a control group. The company said
its drug , which is used to prevent heart failure in African-Americans, has
proven to be highly effective. NTMD closed at 10.20, up 4.30.

Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating)
rallied 7%; the company is scheduled to report Tuesday and analysts are looking
for [0.04] and revenue of $2.88 billion.

Goldman Sachs said Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) might beat estimates and
possible increase its dividend increase. The company is scheduled to report on
Thursday.

Kraft

(
KFT |
Quote |
Chart |
News |
PowerRating) reported earnings that met consensus at $698 million
with revenue that rose by 4.6% to $8.21 billion. The company warned of higher
dairy prices cutting into margins and cut FY04 earnings to $1.85 a share. It
also mentioned a negative effects from the low-carb diet for its US business
segment. Legg Mason
(
LM |
Quote |
Chart |
News |
PowerRating) fell after reporting earnings of $86.4
million with revenue up 29% at $538.9 million.

Adolph Coors
(
RKY |
Quote |
Chart |
News |
PowerRating)
is talking with Canadian brewer Molson about a possible merger.

After the close, Corning
(
GLW |
Quote |
Chart |
News |
PowerRating) reported earnings of $108 million, orÂ 0.11/share, beating by
0.02

Dow	-45.72	10094.06
S&P 500	-0.49	1100.90
Nasdaq	+0.68	1883.83

No economic news releases
today.

10-year Notes were +300
at 111 105

The dollar
was +0.04 at 87.15

Gold was -1.50 at 405.40

Crude Oil was +0.30 at
41.44

Volume was 1.32 billion
on the NYSE, and 1.77 billion on the Nasdaq.

Market breadth was mixed

NYSE	Issues
Advancing	1745	Up Vol 569
Declining	1547	Down Vol 728
Ratio	1.12	1.85
Nasdaq
Advancing	1290	Up Vol 802
Declining	1846	Down Vol 959
Ratio	1.43	1.19

Stocks in the news:

Mattel
(
MAT |
Quote |
Chart |
News |
PowerRating) reported net income of $23.5 million
with worldwide net sales rising 5% to $804 million. Its Barbie dolls sales fell
11% worldwide.

Occidental Petroleum
(
OXY |
Quote |
Chart |
News |
PowerRating) reported earnings that
rose 55% to $581 million with energy production that rose 6%. The company noted
the gains from commodity prices and output were offset by higher operation costs
and depreciation and depletion expenses.

Boston Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating) will recall thousands of its Taxus stents after a death and serious
injuries were linked to the product.

Delta Airlines
(
DAL |
Quote |
Chart |
News |
PowerRating) reported a loss
of $1.96 billion, excluding one-time charges, the loss amounted to $312 million.
Revenue was up 13% but higher fuel costs cut into margins. The stock rose 8%.

Brice Wightman

bricew@tradingmarkets.com

Why Did This Medical Stock Double?

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources