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By Brice Wightman
Stocks fell Wednesday after yesterday's merger rally. The market chopped around early on and the down move picked up steam later in the day. Disappointing housing numbers -- which fell 7.9%, the lowest since August -- set the tone early on. Bad weather was cited for the lower number of housing starts.
The largest specialist firm on the NYSE, LaBranche & Co (LAB), has settled investigations into possible floor-trading abuses and will pay a fine of $63.5 million for violations over the last 10 years. Five firms total have agreed to pay $155 million in restitution for front running, plus $85 million in fines.
Metro-Goldwyn-Mayer (MGM) reported higher fourth-quarter earnings of $60.3, with strong DVD sales. Revenue fell to $543.1 million.
Broadcom (BRCM) rose after saying it would discuss a "stronger business outlook" this afternoon, and some analysts said the company would raise its forecasts. Rambus (RMBS) rose after a judge threw out charges that the company illegally monopolized key computer chip technologies.
Warren Buffett has decided to invest in Cadbury Schweppes (CSG) after the confectioner reported lower earnings. Revenue rose to $12.3 billion with net profit at $699 million. Buffett will invest $73.3 million for a 0.5% stake in the company, making him one of the top 10 institutional investors in CSG.
United Technologies (UTX) had a nice rally into the close; the company increased its weighting in the S&P 500 by 9.5% via conversion of some preferred stock to common stock.
After the close, Applied Materials (AMAT) reported Q1 pro forma 0.12 vs 0.08 estimate, beating estimates. Net income was $82 million or 0.05/share. New orders rose 32%; sales rose 48% from last year's levels to $1.56 billion.
Dow -42.89 10671.99
S&P 500 -5.17 1151.82
Nasdaq -3.88 2076.47
The day's leading sectors were Hardware (HWI.X) +1.24%, Biotechs (BTK.X) +1.24%, Semis (SOX.X) +0.97%, and Disk Drives (DDX.X) +0.77%.
Weak today were Amex Gold Bugs (HUI.X) -4.74%, and Gold and Silver (XAU.X) -4.57%,
Economic news releases included lower housing starts at 1.903 million and 1.899 million building permits.
10-year Notes were -005 at 114 250
The dollar was +0.99 at 86.01
Gold was -3.57 at 411.73
Crude Oil was -0.46 at 34.48
Volume was 1,368,175,000 on the NYSE, and 1,762,553,000 on the Nasdaq.
Market breadth was negative.
NYSE Issues
Advancing 1289 Up Vol 450
Declining 2001 Down Vol 905
Ratio 1.55 2.01
Nasdaq
Advancing 1325 Up Vol 749
Declining 1873 Dow Vol 983
Ratio 1.41 1.31
Stocks in the news:
Drug manufacturer Biogen Idec (BIIB) and Elan (ELN) soared 16% and 24%, respectively, on plans to apply in mid-2004 for US clearance to market Antegren, for the treatment of multiple sclerosis. The companies' initial clinical testing has enjoyed success.
CS First Boston downgraded BellSouth (BLS) and SBC Communications (SBC), joint owners of wireless provider Cingular, to "neutral." Until it is completed, the investment company expects the AT&T Wireless (AWE) deal to drag down share prices, with no significant savings until 2006.
Covad Communications (COVD) reported a fourth-quarter net loss of $12.8 million on revenue of $105 million. For the next quarter, the company expects a loss of $15 million on revenue of $108 million.
Stocks fell Wednesday after yesterday's merger rally. The market chopped around early on and the down move picked up steam later in the day. Disappointing housing numbers -- which fell 7.9%, the lowest since August -- set the tone early on. Bad weather was cited for the lower number of housing starts.
The largest specialist firm on the NYSE, LaBranche & Co (LAB), has settled investigations into possible floor-trading abuses and will pay a fine of $63.5 million for violations over the last 10 years. Five firms total have agreed to pay $155 million in restitution for front running, plus $85 million in fines.
Metro-Goldwyn-Mayer (MGM) reported higher fourth-quarter earnings of $60.3, with strong DVD sales. Revenue fell to $543.1 million.
Broadcom (BRCM) rose after saying it would discuss a "stronger business outlook" this afternoon, and some analysts said the company would raise its forecasts. Rambus (RMBS) rose after a judge threw out charges that the company illegally monopolized key computer chip technologies.
Warren Buffett has decided to invest in Cadbury Schweppes (CSG) after the confectioner reported lower earnings. Revenue rose to $12.3 billion with net profit at $699 million. Buffett will invest $73.3 million for a 0.5% stake in the company, making him one of the top 10 institutional investors in CSG.
United Technologies (UTX) had a nice rally into the close; the company increased its weighting in the S&P 500 by 9.5% via conversion of some preferred stock to common stock.
After the close, Applied Materials (AMAT) reported Q1 pro forma 0.12 vs 0.08 estimate, beating estimates. Net income was $82 million or 0.05/share. New orders rose 32%; sales rose 48% from last year's levels to $1.56 billion.
Dow -42.89 10671.99
S&P 500 -5.17 1151.82
Nasdaq -3.88 2076.47
The day's leading sectors were Hardware (HWI.X) +1.24%, Biotechs (BTK.X) +1.24%, Semis (SOX.X) +0.97%, and Disk Drives (DDX.X) +0.77%.
Weak today were Amex Gold Bugs (HUI.X) -4.74%, and Gold and Silver (XAU.X) -4.57%,
Economic news releases included lower housing starts at 1.903 million and 1.899 million building permits.
10-year Notes were -005 at 114 250
The dollar was +0.99 at 86.01
Gold was -3.57 at 411.73
Crude Oil was -0.46 at 34.48
Volume was 1,368,175,000 on the NYSE, and 1,762,553,000 on the Nasdaq.
Market breadth was negative.
NYSE Issues
Advancing 1289 Up Vol 450
Declining 2001 Down Vol 905
Ratio 1.55 2.01
Nasdaq
Advancing 1325 Up Vol 749
Declining 1873 Dow Vol 983
Ratio 1.41 1.31
Stocks in the news:
Drug manufacturer Biogen Idec (BIIB) and Elan (ELN) soared 16% and 24%, respectively, on plans to apply in mid-2004 for US clearance to market Antegren, for the treatment of multiple sclerosis. The companies' initial clinical testing has enjoyed success.
CS First Boston downgraded BellSouth (BLS) and SBC Communications (SBC), joint owners of wireless provider Cingular, to "neutral." Until it is completed, the investment company expects the AT&T Wireless (AWE) deal to drag down share prices, with no significant savings until 2006.
Covad Communications (COVD) reported a fourth-quarter net loss of $12.8 million on revenue of $105 million. For the next quarter, the company expects a loss of $15 million on revenue of $108 million.