RECAP & STOCKS TO WATCH FOR TUESDAY, 1-23-01
A warning by tech bellwether Dell Computer (DELL) dampened enthusiasm today, but the Nasdaq only suffered modest losses as once again, traders and investors took the bad news in stride. This again suggests a willingness to take on risk, and has been the driving force for the tech sectors so far this year. The losses were also capped by strength in the biotech sector, propelled by a rally in shares of Amgen (AMGN).
The Nasdaq Composite slipped 12 points on Friday to close at 2,757. Volume was 2 billion shares, with 75 new highs compared to 17 new lows. Blue chips, pressured by a cautious outlook from American Express (AXP), followed the techs as the Dow lost 9 points, to finish at 10,578. Volume on the Big Board was 1.1 billion shares with 92 stocks making new highs compared to 6 new lows.
From a technical standpoint, the Nasdaq Composite is now resting right on its 50-day MA.showing a bullish continuation candle on the weekly chart. Support on the Nasdaq Composite stands at 2,730-2,680, with resistance at 2,850 and 3,000. Support on the Semiconductor Index (SOX) stands at 630, with resistance in the 750-780 area. Also of note, the SOX is possibly forming a bullish flag formation, and its 20-day MA has just crossed up through its 50-day MA.
The SOX on a daily basis: tradewindsonline.net
Earnings Spotlight: The focus on earnings continues this week as the following companies are due to report: Cypress Semi (CY), EMC Corp. (EMC), Interwoven (IWOV), LSI Logic (LSI), Nextel (NXTL), Tellabs (TLAB), New Era of Networks (NEON), Anaren Microwave (ANEN), Avanex (AVNX), Broadcom (BRCM), Checkfree (CKFR), Compuware (CPWR), Lam Research (LRCX), Millennium Pharm (MLNM), Powerwave Tech (PWAV) , Qlogic (QLGC), and Siebel Systems (SEBL) on Tuesday, E*Trade (EGRP), Lucent (LU), Power-One (PWER), Akamai Tech (AKAM), Amgen (AMGN), Cirrus Logic (CRUS), Corning, Inc. (GLW), Exodus Comms (EXDS), Immunex Corp. (IMNX), McData (MCDT), MedImmune (MEDI), Newport Corp. (NEWP), Next Level (NXTV), Foundry Networks (FDRY), SDL, Inc. (SDLI), VeriSign (VRSN), and Veritas Software (VRTS) on Wednesday, Celera Genomics (CRA), BroadVision (BVSN), Corvis (CORV), E.piphany (EPNY), Excite@Home (ATHM), Gilead Sciences (GILD), JDS Uniphase (JDSU), PMC-Sierra (PMCS), Qualcomm (QCOM), and Sapient (SAPE) on Thursday, and Level 3 Comms (LVLT) and Ericsson (ERICY) on Friday.
Openwave (OPWV): Reports Q2 earnings of $0.09 a share, $0.12 better than the First Call consensus of ($0.03). Revenues increased approximately 36 percent to $109.7 million from $80.8 million in the first quarter of fiscal 2001, and 278 percent from $29.1 million in the same period a year earlier. China Mobile Communications Corporation has chosen OPWV's WAP-compatible UP.Link Server and Mobile Management Server (MMS) subscriber auto-registration technology to enable wireless Internet access to over half of its subscriber base.
Vitesse Semi (VTSS): Reports Q1 earnings of $0.25 a share, $0.01 better than the First Call consensus of $0.24, vs year-ago earnings of $0.14. Revenues were $165.1 million, an increase of 85% over the $89.3 million in the first quarter of fiscal 2000 and an increase of 20% over the $138.0 million in the fourth quarter of fiscal 2000.
FreeMarkets (FMKT): Reports Q4 loss of $0.27 a share, $0.04 better than the First Call consensus of ($0.31). Revenues increased to $34.5 million, up 340% over the fourth quarter of 1999 and 30% over the quarter ended September 30, 2000.
Texas Instruments (TXN): Reports Q4 earnings of $0.31 a share, $0.02 worse than the First Call consensus of $0.33, vs year-ago earnings of $0.25. Revenue was $11,861 million, up 22% from 1999's $9759 million. TXN expects its revenue to decline about 10% sequentially in the first quarter as semiconductor customers continue to work through excess inventory during this seasonally slower period. On conference call, notes that a significant drop in new orders began in late December and has continued into Q1. Characterized Q4 as a "transitional" period where it went from an outstanding environment to a weak environment... Due to limited visibility, CFO, Bill Aylesworth, refrained from providing any further guidance beyond Q1when asked about its projection for when it thought inventory levels would be properly adjusted for customers. All company could say was that there was no reason to give assurance that it would be over by end of Q1. Instead, TXN pointed to wireless space (where it has its best visibility) and cited projections where inventory overhang could perhaps last all the way until end of the first half of 01.
Fiserv (FISV): Reports Q4 earnings of $0.34 a share, in line with the First Call consensus of $0.34, vs year-ago earnings of $0.28. Revenues rose 16.0%, to $434.58 mln from a year-ago of $374.50 mln. Company issues upside pre-announcement for FY01, sees $1.60-1.61 vs. current EPS estimate of $1.60. Says company is well positioned for 2001 and cites strength in new sales activity, cross-sales and acquisition opportunities across all major business lines.
Cognex Corp (CGNX): Company issues upside pre-announcement for Q1, sees $0.17-0.19 vs. current First Call EPS estimate of $0.17. Sees revenues in the range of $50 to $53 mln and said that despite lack of visibility, they are planning conservatively for the entire year based upon both the slower order trends company is currently experiencing as well as the softening of the economy.
Computer Assoc (CA): Reports Q3 earnings of $0.42 a share, $0.02 better than the First Call consensus of $0.40, vs year-ago earnings of $0.87. Revenues rose 5.4% to $1.40 bln from a year-ago of $1.33 bln. |
