Techs Edge Higher on HP Earnings

123jump.com Staff
20 Aug, 2008
New York City

Tech stocks edged higher in the morning after better than expected earnings from Hewlett Packard lifted the sentiment. More than 60% of the tech companies have now reported better than expected earnings in the latest quarterly earnings. Metals and mining companies rallied after copper and other base metal prices rose. Freeport McMoran, BHP Billiton, Rio Tinto and Sterlite edged higher. Verifone surged 24% on higher earnings estimates for the fiscal 2009.

[R]9:30AM New York – Tech stocks edged higher after Hewlett Packard reported better than expected earnings. Resource stocks gained on a rise in copper prices. Hong Kong and India closed higher.[/R]

Investors warmed to tech stocks after better than expected earnings from Hewlett Packard lifted the sentiment. Market averages increased at the opening after tech stocks advanced. Dell, IBM, Apple and EMC edged higher.

According to the 123jump.com earnings database of 4,300 companies, more than 140 tech companies have reported earnings and managed to deliver better than expected earnings.

VeriFone jumped more than 24% after it estimated annual earnings for the fiscal 2009 between $1.35 and $1.55 a share and sales gain between 10% and 15%.

Copper futures prices gained on the worries that supply will lag demand this year. The rise in futures lifted Freeport-McMoran, BHP Billiton, Rio Tinto, Southern Copper Peru and Sterlite Industries. Peru’s debt rating was increased, just one level below investment grade by a rating agency.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 13.36 or 0.10% to 12,851.69, Hang Seng index in Hong Kong increased 446.89 or 2.18% closed to 20,931.26. ASX 200 index in Australia increased 63.10 or 1.30% to close 4,929.50. The KL Composite index in Malaysia increased 3.79 or 0.35% closed to 1,073.21.

The Kospi Index in South Korea decreased 0.70 or 0.05% to close at 1,540.71, SET index in Thailand closed lower 1.28 or 0.19% to 690.05 and JSE Index in Indonesia increased 27.20 or 1.33% to 2,069.70. The Sensex index in India increased 134.50 or 0.92% closed to 14,678.23.

Europe Markets Review

In London FTSE 100 Index traded higher 50.70 or 0.95% to 5,371.10, in Paris CAC 40 Index increased 26.56 or 0.61% to 4,359.35 and in Frankfurt DAX index traded higher 29.02 or 0.46% to 6,311.45. In Zurich trading SMI decreased 10.19 or 0.14% to 7,104.99.

Earnings Review

Hewlett-Packard Company, the technology company and the largest personal computer company said third quarter revenues rose 10% to $28 billion from $25.4 billion a year ago. Net income in the quarter jumped 14% to $2.03 billion or 80 cents per diluted share compared to net income of$1.78 billion or 66 cents per share, a year ago.

Hewlett-Packard Company ((HPQ)) in the last one year traded as high as $53.48 in November 2007 and as low as $39.99 in February 2008. Based on the yesterday’s closing price the company has a market cap of $107.75 billion.

La-Z-Boy Incorporated, a furniture maker said first quarter revenues fell 6.6% to $321.7 million from $344.4 million a year ago. Net loss in the quarter was $8.5 million or 17 cents per diluted share compared to net loss of $8.7 million or 17 cents per share, a year ago.

La-Z-Boy Incorporated ((LZB)) in the last one year traded as high as $10.35 in September 2007 and as low as $5.31 in November 2008. Based on the yesterday’s closing price the company has a market cap of $384.49 million.

BJ''s Wholesale Club, Inc, a warehouse club operator in the eastern United States reported second quarter sales increased 18% to $2.65 billion from $2.24 billion a year ago. Net income in the quarter rose 0.54% to $36.5 million or 61 cents per diluted share compared to net income of $36.3 million or 55 cents per share, a year ago.

BJ''s Wholesale Club, Inc ((BJ)) in the last one year traded as high as $44.29 in July 2008 and as low as $26.36 in January 2008. Based on the yesterday’s closing price the company has a market cap of $2.44 billion.