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Get Ready For Wednesday With These Numbers
By Brice Wightman
Stocks fell Tuesday as weakness in the chip sector weighed on the market. Semiconductor Novellus Systems (NVLS) reported earnings that more than tripled, with earnings of $10.5 million on sales of $226.5 million. The company expects earnings to reach 8 cents a share on sales of $245 million, but it lowered 2004 EPS to $1 on lower-than-expected growth and lower operating margins.
Caterpillar (CAT) reported 4Q profits, citing lowered operating costs and the weak dollar. The company sees a 40% jump in earnings in 2004. The stock hit a 52-week high before backing off later in the session. Chemical giant Dupont (DD) reported higher fourth-quarter earnings of $636 million, an increase of 180% from the year-ago period. Sales rose 14% to $6.5 billion. For the next quarter, the company expects to earn 70 cents per share.
Search engine Google was given the green light for the launch of its widely anticipated IPO after passing audits that certified compliance with the Sarbanes-Oxley law.
A judge in Manhattan ordered the Nasdaq to pay $3,000 each to two traders who filed in small claims court for their Dec. 5 trades in Corinthian Colleges (COCO). In other legal news, opening arguments were made in the Martha Stewart case. The trial is expected to last about one month.
Dow -92.59 10609.92
S&P 500 -11.32 1144.05
Nasdaq -37.79 2116.04
The day's leading sectors were Amex Gold Bugs (HUI.X) +2.54%, Gold and Silver (XAU.X) +1.92%, Airlines (XAL.X) +1.31%, Chemicals (CEX.X) +0.30%.
Weak today were Semis (SOX.X) -4.14%, and Telecom (XTC.X) -0.60%.
Economic news releases included consumer confidence index levels at 96.8, the highest since July 2002.
10-year Notes were +150 at 114.
The dollar was -0.98 at 86.27
Gold was +5.99 at 409.67.
Crude Oil was -0.39 at 34.08.
Volume was 1,626,240,000 on the NYSE, and 2,103,517,000 on the Nasdaq.
Market breadth was negative.
NYSE Issues
Advancing 1418 Up Vol 588
Declining 1894 Down Vol 859
Ratio 1.33 1.46
Nasdaq
Advancing 1259 Up Vol 490
Declining 1979 Down Vol 1466
Ratio 1.57 2.99
Stocks in the news:
After the bell, Amazon (AMZN) reported in-line at $0.29 pro forma (0.17 diluted) and revenue beat expectations at $1.95B vs. $1.8B. This is the first consecutive quarter-to-quarter GAAP profit gain in the company's history. Amazon had a fourth-quarter net profit of $73 million, compared with $3 million a year ago. The stock traded down in after-market trading.
Broadcom (BRCM).reported a Q4 profit of $0.02 (pro-forma 0.19). A year ago, the company lost $6.40/share. Electronic Arts (ERTS) reported 3Q of $1.26 vs $1.20 estimate. The stock traded down $4 in the after market after warning for the fourth quarter. Avaya (AV) reported $0.07, a penny ahead. Flextronics (FLEX) reported $0.17 vs. $0.14 estimate.
Kraft (KFT) will cut 6000 jobs over the next 3 years, including 1300 salaried jobs in North America in the first quarter. The company said it will take a charge of $1.2B, and that 2004 earnings will be in the $1.63 - $1.70/share range. The company's 4Q was in-line at 0.50.
Lockheed Martin (LMT) showed earnings of $344 million on net sales of $8.98 billion, well ahead of the $8.84 billion consensus. LMT guided higher earnings of $34 billion but lower EPS of $2.45, due to rising pension costs.
Shares of drug maker Merck (MRK) have risen from a low of $40 to $47 over the last two months but the company reported a 23% drop in profits due to job cuts and declining sales of popular drugs. Earnings fell to $1.4 billion on revenues of $5.63 billion. Vioxx sales doubled to $731 million while sales of Zocor fell 12%.
Publisher McGraw-Hill (MHP) reported earnings of $159.9 million on revenues of $1.2 billion. MHP gained 3% for the day.
ISP provider Earthlink (ELNK) reported fourth-quarter income of $10.7 million on revenues of $348.2 million. Monthly subscriber churn increased by 0.5% to 4.1%. ELNK fell 10%.
By Brice Wightman
Stocks fell Tuesday as weakness in the chip sector weighed on the market. Semiconductor Novellus Systems (NVLS) reported earnings that more than tripled, with earnings of $10.5 million on sales of $226.5 million. The company expects earnings to reach 8 cents a share on sales of $245 million, but it lowered 2004 EPS to $1 on lower-than-expected growth and lower operating margins.
Caterpillar (CAT) reported 4Q profits, citing lowered operating costs and the weak dollar. The company sees a 40% jump in earnings in 2004. The stock hit a 52-week high before backing off later in the session. Chemical giant Dupont (DD) reported higher fourth-quarter earnings of $636 million, an increase of 180% from the year-ago period. Sales rose 14% to $6.5 billion. For the next quarter, the company expects to earn 70 cents per share.
Search engine Google was given the green light for the launch of its widely anticipated IPO after passing audits that certified compliance with the Sarbanes-Oxley law.
A judge in Manhattan ordered the Nasdaq to pay $3,000 each to two traders who filed in small claims court for their Dec. 5 trades in Corinthian Colleges (COCO). In other legal news, opening arguments were made in the Martha Stewart case. The trial is expected to last about one month.
Dow -92.59 10609.92
S&P 500 -11.32 1144.05
Nasdaq -37.79 2116.04
The day's leading sectors were Amex Gold Bugs (HUI.X) +2.54%, Gold and Silver (XAU.X) +1.92%, Airlines (XAL.X) +1.31%, Chemicals (CEX.X) +0.30%.
Weak today were Semis (SOX.X) -4.14%, and Telecom (XTC.X) -0.60%.
Economic news releases included consumer confidence index levels at 96.8, the highest since July 2002.
10-year Notes were +150 at 114.
The dollar was -0.98 at 86.27
Gold was +5.99 at 409.67.
Crude Oil was -0.39 at 34.08.
Volume was 1,626,240,000 on the NYSE, and 2,103,517,000 on the Nasdaq.
Market breadth was negative.
NYSE Issues
Advancing 1418 Up Vol 588
Declining 1894 Down Vol 859
Ratio 1.33 1.46
Nasdaq
Advancing 1259 Up Vol 490
Declining 1979 Down Vol 1466
Ratio 1.57 2.99
Stocks in the news:
After the bell, Amazon (AMZN) reported in-line at $0.29 pro forma (0.17 diluted) and revenue beat expectations at $1.95B vs. $1.8B. This is the first consecutive quarter-to-quarter GAAP profit gain in the company's history. Amazon had a fourth-quarter net profit of $73 million, compared with $3 million a year ago. The stock traded down in after-market trading.
Broadcom (BRCM).reported a Q4 profit of $0.02 (pro-forma 0.19). A year ago, the company lost $6.40/share. Electronic Arts (ERTS) reported 3Q of $1.26 vs $1.20 estimate. The stock traded down $4 in the after market after warning for the fourth quarter. Avaya (AV) reported $0.07, a penny ahead. Flextronics (FLEX) reported $0.17 vs. $0.14 estimate.
Kraft (KFT) will cut 6000 jobs over the next 3 years, including 1300 salaried jobs in North America in the first quarter. The company said it will take a charge of $1.2B, and that 2004 earnings will be in the $1.63 - $1.70/share range. The company's 4Q was in-line at 0.50.
Lockheed Martin (LMT) showed earnings of $344 million on net sales of $8.98 billion, well ahead of the $8.84 billion consensus. LMT guided higher earnings of $34 billion but lower EPS of $2.45, due to rising pension costs.
Shares of drug maker Merck (MRK) have risen from a low of $40 to $47 over the last two months but the company reported a 23% drop in profits due to job cuts and declining sales of popular drugs. Earnings fell to $1.4 billion on revenues of $5.63 billion. Vioxx sales doubled to $731 million while sales of Zocor fell 12%.
Publisher McGraw-Hill (MHP) reported earnings of $159.9 million on revenues of $1.2 billion. MHP gained 3% for the day.
ISP provider Earthlink (ELNK) reported fourth-quarter income of $10.7 million on revenues of $348.2 million. Monthly subscriber churn increased by 0.5% to 4.1%. ELNK fell 10%.