IBM, Compaq gain on H-P's profits
Fed rate meeting keeps cap on pre-open trading
By Tomi Kilgore, CBS MarketWatch
Last Update: 7:43 AM ET May 18, 1999
NewsWatch
NEW YORK (CBS.MW) -- PC shares are picking up in thin pre-open
trading Tuesday after Hewlett-Packard's stronger-than-expected
earnings, London market makers said.
IBM (IBM: news, msgs) rose 1 to 238 1/2 and Compaq (CPQ: news,
msgs) tacked on 1/4 to 26 1/4, according to Madoff Investment
Securities. Dell (DELL: news, msgs) was unchanged after an earlier gain.
"The market's gotten over the shock" of the surprising gain in U.S. April
CPI. Nonetheless, trading was unusually quiet ahead of the Federal
Reserve's rate policy-setting committee meeting this afternoon.
H-P (HWP: news, msgs) however was off 1/2 to 88 1/4. The fiscal
second-quarter profits report from the No. 2 computer maker late
Monday lifted some concerns of slowing revenue in the personal
computer market.
Profits grew 34 percent due to strong PC and
printer sales. See full story.
Dell Computer Corp. is slated to release its
earnings after the close on Tuesday. Analysts
polled by First Call are expecting profits of 16
cents per share. Dell traded up 3/8 to 43 5/8 in
pre-open trade, said traders at S.G. Cowen.
Intel (INTC: news, msgs) rose 1/2 to 59 15/16.
The chip maker Monday slashed prices on existing
Pentium III chips as it launched its most powerful
Pentium III yet, one that will allow faster Web
access to audio, video and three-dimensional
graphics, Reuters reported.
Nets quiet
No trades were reported in the Internets. Search
engine Lycos Inc (LCOS: news, msgs) is expected
to also post earnings Tuesday. Estimates are for the
company to announce losses of 3 cents per share.
Amazon.com (AMZN: news, msgs) has purchased a 35 percent stake in
HomeGrocer.com for $42.5 million, the Wall Street Journal reported.
AMAT results due
Among others to announce results Tuesday: Applied Materials (AMAT:
news, msgs). First Call consensus estimate for the semiconductor
equipment maker is 26 cents per share; Network Appliance (NTAP:
news, msgs) is 13 cents per share; and, Computer Associates (CA: news,
msgs) is 82 cents per share.
Tomi Kilgore is an online reporter for CBS MarketWatch.
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