RECAP & STOCKS TO WATCH FOR THURSDAY, 1-11-01
Cautious comments by Cisco (CSCO) CEO John Chambers weren’t enough to keep the Nasdaq Composite down, as the index closed higher for the 2nd day in a row. Chambers told a technology conference that the current quarter was “a little bit more challenging” than expected 6 weeks ago. Tech stocks initially sold off sharply on the news, but bounced back with CSCO leading the way. All sectors moved higher, led again by the semis, software and Internet issues.
The Nasdaq Composite gained 82 points to close at 2,524. Volume was a heavy 2.5 billion shares, with 65 new highs compared to 61 new lows. Blue chips were pressured most of the day but rallied in the last hour as the Dow gained 31 points to finish at 10,604. Volume on the Big Board was 1.3 billion shares with 169 stocks making new highs compared to 20 new lows.
From a technical standpoint, the Semiconductor Index (SOX) pushed off of support at 630, with resistance in the 730-750 area. Support on the Nasdaq Composite stands at 2,300, with resistance at 2,538 and 2,822. The action today indicates a further continuation off of the “hammer,” that was formed on Monday, and also today formed a “bullish engulfing” pattern as another confirming signal of the continued uptrend.
Earnings Spotlight: Some closely watched earnings reports for Thur. are Ariba (ARBA), Cree (CREE), DoubleClick (DCLK), and Rambus (RMBS).
Yahoo! (YHOO): Reports Q4 earnings of $0.13 a share, in line with the First Call consensus of $0.13. Revenues rose 53.0% to $310.87 mil from a year-ago of $203.15 mil. Company warns for 2001; sees 2001 revenue of $1.2 to $1.3 bil, (consensus is $1.4 bil) and EPS of $0.33-0.43 (consensus is $0.57). This warning could affect other companies that depend on ad revenues such as the following: Cnet (CNET), America Online (AOL), and Doubleclick (DCLK).
Macrovision (MVSN): Company issues upside pre-announcement for FY01. Sees EPS above $0.80 vs. current EPS estimate of $0.73.
Motorola (MOT): Reports Q4 earnings of $0.15 a share, in line with the First Call consensus of $0.15. Revenues rose 11.1% to $10.06 bil from a year-ago of $9.06 bil.
Rational Sftwr (RATL): Reports Q3 earnings of $0.20 a share, $0.02 better than the First Call consensus of $0.18. Revenues rose 47.4% to $215.45 mil. from a year-ago of $146.18 mil. |
