Marvell, Intuit Rise; HP Falls

Nigel Thomas
20 Aug, 2010
New York City

U.S. stocks traded lower for the second day after unemployment claims rise and election rhetoric heats up. Hewlett Packard led the decliners in the Dow with a loss of 2.2% after the earnings Dell Inc net gained 16%. Ann Taylor Stores sales swings to a quarterly profit on 2% rise in sales.

[R]11:20 AM New York – U.S. stocks traded lower for the second day after unemployment claims rise and election rhetoric heats up. Hewlett Packard led the decliners in the Dow with a loss of 2.2% after the earnings Dell Inc net gained 16%. Ann Taylor Stores sales swings to a quarterly profit on 2% rise in sales.[/R]

Of the 30 stocks in the Dow Jones Industrial Average, 24 declined and 6 traded higher. Hewlett Packard led decliners in the index with a loss of 2.2% followed by losses in Caterpillar Inc of 1.6%, in 3M Co of 1.6%, I Bank of America of 1.4% and in AT&T of 1.3%.

Travelers Cos led gainers in the Dow with a rise of 0.9% followed by increase in Wal-Mart Stores of 0.7% and in JP Morgan Chase of 0.2%.

Other Movers

Aeropostale, Inc. ((ARO)) rose 10 cent to $23.33 after the teen apparel discount retailer said second quarter net sales increased 9.2% to $494.7 million from $453.0 million in the year ago period. Net income in the quarter edged higher 13% to $43.6 million or 46 cents per diluted share, from net income of $38.6 million or 38 cents per share in the second quarter last year.

Ann Taylor Stores Corp. ((ANN)) increased 2% or 32 cent to $15.79 after the specialty retailer of women’s apparel net sales grew 2.8% to $483.5 million from $470.2 million in the prior-year quarter. Net income in the quarter was $18.6 million or 31 cents per diluted share, compared with a net loss of $18.0 million or 32 cents per share in the second quarter of 2009.

Blue Coat Systems, Inc. ((BCSI)) plunged 8.5% or $1.62 to $17.33 after the provider of application delivery networking reported first quarter net revenue rose 6% to $122.48 million from $115.98 in the first quarter of fiscal 2010. Net income in the quarter grew 248.9% to $13.92 million or 29 cents per diluted share, compared with a net income of $3.99 million or 9 cents per share a year ago.

Dell Inc. ((DELL)) gained 0.2% or 3 cent to $12.07 after the PC maker stated second quarter net revenue climbed 22% to $15.53 billion from $12.76 billion in the same quarter last year. Net income in the quarter increased 16% to $545 million or 28 cents per diluted share compared to net income of $472 million or 24 cents per share in the prior-year quarter.

Foot Locker, Inc. ((FL)) declined 2.5% or 33 cent to $12.66 after the athletic footwear and apparel retailer reported second quarter sales decreased 0.3% to $1.096 billion from $1.099 billion last year on comparable store sales rise of 2.5%. Net income in the quarter was $6 million or 4 cents per diluted share, compared to break-even performance last year.

Hewlett-Packard Company ((HPQ)) slipped 2.1% or 86 cent to $39.90 after the technology company said third quarter net revenue gained 11.4% to $30.73 billion from $27.59 billion in the same quarter last year. Net income in the third quarter rose 6% to $1.8 billion or 75 cents per diluted share, compared to net income $1.7 billion or 69 cents per share for the year-ago quarter.

Intuit Inc. ((INTU)) soared 11% or $4.28 to $43.05 after the business and financial management solutions provider fourth quarter net revenue increased 18% to $537 million from $457 million a year ago. Net loss in the quarter narrows 32.4% to $48 million or 15 cents per diluted share, compared to net loss of $71 million or 22 cents per share in the previous year.

Marvell Technology Group Ltd. ((MRVL)) surged 9.5% or $1.43 to $16.34 after the chip maker stated second quarter net revenue soared 40% to $896 million from $641 million in the second quarter of fiscal 2010. Net income in the quarter surged 279.3% to $220 million or 33 cents per diluted share, compared to net income of $58 million or 9 cents per share in the prior year quarter.

Nordson Corporation ((NDSN)) increased 1.3% or 90 cent to $65.49 after the equipment manufacturer reported third quarter net sales increased 35% to $279.1 million from $206.3 million in the same quarter last year. Net income rose in the quarter was $55.3 million or $1.61 per diluted share, compared to a net income of $24.0 million or $0.71 per share in the prior-year quarter.

Ross Stores, Inc. ((ROST)) fell 0.9% or 46 cent to $49.82 after the off-price retail stores stated second quarter net sales climbed 8% to $1.91 billion from $1.77 billion in the prior year quarter. Comparable store sales in the quarter rose 4%. Net earnings in the quarter increased 25% to $129.3 million or $1.07 per diluted share, compared to net income of $103.4 million or $0.82 per share in the year-ago quarter.

Salesforce.com, Inc. ((CRM)) soared 12.4% or $11.97 to $108.38 after the provider of customer and collaboration relationship management services reported second quarter revenue rose 25% to $394.3 million from $316.0 million in the year-ago quarter. Net income in the quarter fell 31% to $14.7 million or 11 cents per diluted share, compared to net income of $21.2 million or 17 cents per share last year.

The Gap Inc. ((GPS)) declined 1.4% or 25 cent to $17.46 after the specialty retailer reported second quarter net sales increased 2.2% to $3.32 billion from $3.25 billion in the prior-year quarter. Net income in the quarter rose 2.6% of $234 million or 36 cents per diluted share, compared to net income of $228 million or 33 cents per share in the year-ago quarter.

The Wet Seal, Inc. ((WTSLA)) gained 1.3% or 4 cent to $3.03 after the female apparel and accessory retailer reported second quarter net sales was $131.5 million from $136.4 million in the prior year quarter. Comparable store sales in the quarter fell 4.3%. Net income in the quarter was $1.6 million or 2 cent per diluted share, compared to net income of $3.1 million or 3 cent per share in the year-ago quarter.

Verigy Ltd ((VRGY)) slipped 2.7% or 24 cent to $8.53 after the advanced test systems manufacturer said third quarter net revenue increased 28% to $154 million from $87 million in the same quarter last year. Net income in the third quarter was $13 million or 21 cents per diluted share, compared to net loss $21 million or 36 cents per share for the year-ago quarter.