Tech Stocks Rebound; Yahoo, Intel, RiM Up

123jump.com Staff
15 May, 2008
New York City

Tech stocks rally lifted broader market indexes. Nasdaq index gained 1.2% in the late afternoon on a steady rise in Apple, Research in Motion, Intel, Cisco and Google. Carl Ichan and Paulson & Company acquire a stake in Yahoo hoping to elect board that favors a deal with Microsoft. Retailers also rallied after JC Penney reported lower than expected fall in earnings. Barclays reported a large loss related to credit market assets.

[R]3:00PM New York – U.S. stocks edged higher and tech stocks led the gainers. JC Penney gained on earnings.[/R]

Tech stocks increased after Yahoo, Research in Motion, Apple and Google edged higher.
Broader market indexes S&P 500 and Dow Jones traded at a day’s high. Commodities and energy related stocks increased despite a weakness in crude oil futures and a weakness in base metals prices.

Research in Motion added $1.30 to $139.86, Apple increased $2.04 to $188.26, Google edged $2.27 to $578.72 and Yahoo! advanced 49 cents to $27.63. Rate.com increased $3.04 to $48.34.

CNET Networks, Inc., publisher of technology focused content has agreed to be acquired by CBS for $1.8 billion in cash. The acquisition, agreed by both parties valued the company for $11.50 per share, 32% premium from the closing price on Wednesday at $7.95. The transaction is expected to be completed in the third quarter of this year.

CNET ((CNET)) Stock jumped 42% to $11.37.

Barclays take quarterly charge, Tier 1 ratios decline

Barclays, the third largest British bank with a significant presence in the U.S. said in its interim management statement that the first quarter 2008 earnings are below that in the first quarter of 2007, without disclosing the results in details. The bank also stated that Tier 1 capital and equity ratios have worsened since it reported them at the end of the last year. Ratios then were 7.6% and 5.1% respectively.

The company reported a loss of £1.1 billion in the quarter on the charge of £1.7 billion related to credit market losses and still has exposure to £14 billion pounds to subprime and other asset backed loans at the end of the first quarter. The leverage finance loan exposure is £7.4 billion. The charges related to credit market included £598 million loan impairments, £495 million against asset backed securities and £513 million losses in credit market derivative exposures.


Earnings review

Agilent Technologies, Inc, bio-analytical and electronic equipment said second quarter revenues rose 10% to $1.46 billion from $1.32 billion a year ago. Net income in the quarter jumped 41% to $173 million or 47 cents per diluted share compared to net income of $123 million or 30 cents per share, a year ago.

Agilent Technologies, Inc stock ((A)) rose $2.66 to $35.20.

Ctrip.com International, Ltd, Internet based travel service provider in China said first quarter revenues rose 47% to RMB 340 million or $49 million from $232 million a year ago. Net income in the quarter rose 52% to RMB 99 million or $14 million. Earnings per ADS were RMB 1.43 or $0.20 per diluted share compared to net income of RMB 64 million or ADS were RMB 0.96 or $0.25 per share, a year ago.

Ctrip.com International, Ltd stock ((CTRP)) fell $6.88 to $56.45.

J. C. Penney Company, Inc, department store retailer reported first quarter sales fell 5% to $4.13 billion from $4.35 billion a year ago. Net income in the quarter dropped 50% to $120 million or 54 cents per diluted share compared to net income of $238 million or $1.04 per share, a year ago.

J. C. Penney Company, Inc stock ((JCP)) rose $1.88 to $46.15.

Melco PBL Entertainment (Macau) Limited, a casino and entertainment resort operator reported first quarter revenues surge of 230% to $482.9 million from $20.2 million a year ago. Net income in the quarter was $43.2 million or 9.8 cents per ADS compared to net loss of $27.2 million or 6.8 cents per ADS, a year ago.

Melco PBL Entertainment (Macau) Limited stock ((MPEL)) fell $1.07 to $13.19.

Urban Outfitters, Inc, apparel retailer reported first quarter sales rose 25% to $394.3 million from $314.5 million a year ago. Net income in the quarter jumped 45% to $42.6 million or 25 cents per diluted share compared to net income of $29.4 million or 17 cents per share, a year ago.

Urban Outfitters, Inc stock ((URBN)) fell 1 cent to $32.98.

Double Hull Tankers Inc, Oil tanker owner and operator said first quarter revenues rose 23% to $24.9 million from $20.2 million a year ago. Net income in the quarter jumped 6% to $7.6 million or 25 cents per diluted share compared to net income of $7.2 million or 24 cents per share, a year ago.

Double Hull Tankers Inc stock ((DHT)) fell 12 cents to $11.14.


World markets review

In Tokyo Nikkei 225 Index closed higher 133.19 or 0.94% to 14,251.74, in Hong Kong Hang Seng index decreased 19.77 or 0.08% closed to 25,513.71. In Australia ASX 200 index higher 18.00 or 0.31% to close 5,890.70. In Malaysia KL Composite index increased 6.41 or 0.50% closed to 1,294.15.

In South Korea Kospi Index increased 41.96 or 2.28% to close at 1,885.71, in Thailand SET index closed higher 6.67 or 0.79% to 855.61 and Indonesia JSE Index edged increased 0.47 or 0.02% to 2,449.81. Sensex index in India increased 375.19 or 2.21% to 17,353.54.

In London FTSE 100 Index closed higher 35.80 or 0.58% to 6,251.80, in Paris CAC 40 Index increased 2.27 or 0.04% to close at 5,057.51 and in Frankfurt DAX index lower 2.19 or 0.03% to close at 7,081.05. In Zurich trading SMI increased 88.82 or 1.17% to close at 7,683.43.