Tech in Motion

123jump.com Staff
30 Nov, -0001
New York City

Apple shares trade higher on news of talks with Intel to use chips for Apple products. Google and Pixar shares were up by 5.7% and 4.5%. Campbell met the earnings estimates. Tuesday Fed releases its May 3rd minutes of meeting transcript and NAR releases existing home sales. On earnings watch Costco, AutoZone, Petco, Boeing, Toll Brothers, Medtronics are scheduled this week.

Early morning trading is dominated by oil and dollar price movements. Oil reversed its early loss and gained 51 cents and closed at $49.16 per barrel sparking rally in oil stocks.

U.S. dollar traded high in the morning trading hours and then at the end of the day backed-off from its high of the day. The dollar fell modestly against euro, British pond and Japanese yen.

Brokerage upgrade also helped to maintain momentum in oil stocks at mid-day trading. The U.S. dollar weakness against euro and British pound led rally in metals sector and mining stocks such as Phelps Dodge, Rio Tinto, and BHP traded higher.

Apple and Google led tech rally.

Apple shares closed up 5.9% on news that Intel may be selected for future McIntosh computer product line. Intel and Apple had on-again off-again talks to replace current Power Chip made by IBM. Apple shares had traded as low as $33.50 in last one month.

Google shares closed up $13 up 5.73%. Google is reported to be working on tool to let users build their personalized news page from a list of news providers.

Shares of Pixar were trading up 4.56% and closed to a new high of $53 after Prudential Equity Group analyst raised its target from $45 to $75.

Home builders in anticipation of tomorrow’s existing home sales from NAR traded higher. Toll Brothers, Beazer Homes, Ryland Homes, Lennar Corp, D R Horton, closed higher by 2%, 3.37%, 2.73%, 1.06%, and 2.93% respectively.

Shares of Wynn Resorts, Petsmart, Netflix, Boyd Gaming and Corning closed lower. Corning shares had run up by 50% in less than three months on the expected better margins for the better flat panel glass sales.

Netflix shares also traded lower by 2.4%, stock has been selling-off after the news last week that it will take over Wal-Mart online DVD rental business.

Campbell Soup reported 3Q profit of 35 cents vs. 34 cents a year ago on revenue jump of 4% despite the price hike of 5%. The company forecasted full-year profit of $1.58. The stock was up by 1.5%.

McData, maker of storage equipment reported 1Q loss of 2 cents vs. loss of 9 cents a year ago on revenue of $98.9 million. Shares are trading up 5 cents.

Atlas Air, the cargo air carrier, which emerged from bankruptcy last July, expects the 1Q profit between $3 and $8 million and full-year profit above $68 million.

Shares of Boston Communications, provider of billing software for wireless carriers and pre-paid phone card vendors, dropped by 60%, the company lost a five-year long legal battle for patent infringement against Freedom wireless. The award of $128 million which may be increased for punitive damages by additional $380 million may force company into bankruptcy protection.

Earnings and Economic news are expected to dominate market for the rest of the week’s trading. More than 65 companies are expected to release earnings with bulk of them reporting on Wednesday and Thursday. Manufacturing, retail, medical and pharmaceutical companies are expected to dominate earnings this week.

Tuesday

Fed releases May 3rd minutes of meeting and existing home sales will be released by National Association of Realtors.

European broadcasting company with radio and TV stations in nine countries in Europe is expected to release 1Q loss of 36 cents on Tuesday.

Boeing is scheduled to report 62 cents for the 1Q earnings, Williams Sonoma to report 1Q earnings of 19 cents on $718 million in revenue, and Medtronic is expected to report 53 cents on $2.83 billion in revenue, and Hughes Supply is expected to release earnings of 51 cents on $1.24 billion in revenue.

Wednesday

Commerce Department will release April durable good orders, expected to rise 1%.

Auto parts retailer AutoZone is scheduled to report earnings of $1.80 per share on $1.37 billion. The stock is trading in mid-point of its 52 week range at $88. Brown Forman, diversified Consumer products is expected to report 49 cents on $658 million in revenue.

Petco Animal Supplies is expected to report 32 cents on revenue of estimates of $481 million. The stock trading at $33 and has traded in 52 week range of $27 and $40. Coldwater Creek is expected to report 11cents on $145 million revenue.

Thursday

8:30 AM Commerce Department releases 2Q GDP estimates.

Retailing companies Costco, Restoration Hardware, Chico’s, and Dollar General are expected to report earnings on Thursday. Other notable companies Hormel Foods Toll Brothers, CUNO, Tech Data, Computer Associates and Stewart and Stevenson are scheduled to report on Thursday.

Costco is expected to report 42 cent on $11.89 billion in revenue for the quarter; Dollar General is expected to report 22 cents on revenue of $1.96 billion.

Women’s apparel is expected to beat 25 cents of earnings on at least $325 billion in revenue for the quarter. Computer Associates is expected to report 20 cents on $919 million in revenue for the current quarter.

Toll Brothers is expected to report for the quarter $1.79 earnings per share on revenue of $1.26 billion. The stock has rallied from $37 to $85 in the last 52 weeks.

Friday

No major companies are scheduled to report earnings on Friday.


International News

At close, markets in South America traded lower with Brazil down 0.54%. Chile trading fractional lower and Mexico and Argentina closed up 0.88% and 0.83% respectively.

Peruvians are slowly moving away from U.S. dollar to Sol, for local transactions, after fears on long running inflation are subsiding. Central Bank has proposed elimination of transaction tax for Sol transaction.

South African gold mines workers union demand 20% wage hikes before the new contract begin in July.

European markets closed higher, Germany leading with 1.06% jump in index followed by jump in indexes in Paris, London, Madrid and Oslo.

In London mining stocks led a mild rally and shares of Telenor in Oslo added 0.85% after it agreed to acquire Swedish and Danish broadband providers for close to $820 million.

Shares of British Land in London jumped 0.7% after it agreed to by Pillar Property for 855 pence cash a share.

The loss in regional German election by ruling party may lead to early national election.

Most Asian markets closed unchanged but in Tokyo averages jumped higher by 1% and in Taiwan averages lost 1.16%.

China’s Ministry of Commerce imposed tariff as high as 400% on 74 garment categories including the seven under review by the U.S. for import restrictions. Today, the Ministry office said that it will not impose these tariffs if fresh quotas are imposed by importing countries.