RECAP & STOCKS TO WATCH FOR FRIDAY, 1-26-01
Tech stocks took a beating today under the weight of a sell-off in the fiber optic sector following a more cautious outlook from Corning (GLW). Meanwhile, strength in the cyclical and drug sectors pushed the Dow to an impressive gain.
Fed Chairman Greenspan made bold statements in a speech before the Senate Budget Committee, saying that economic growth has slowed dramatically, and adding that the U.S. is now close to zero growth. He also commented favorably on President Bush’s proposed tax cuts.
The Nasdaq Composite dropped 104 points, or 3.7%, to close at 2,754. Volume was 2.3 billion shares, with 58 new highs compared to 18 new lows. The Dow gained 82 points, to finish at 10,729. Volume on the Big Board was 1.2 billion shares with 121 stocks making new highs compared to 5 new lows.
Given the advance of the tech stocks in the past few weeks, it was no surprise that the comments from Corning (GLW) and Greenspan spooked traders into some profit taking. What was surprising was the lack of buying late in the session. When it looked like the Nasdaq would cut some its losses into the close, more sellers came in and pushed the index towards its session low. In doing so, it opened up the question in traders’ minds of “where to from here?” Although long term indicators still point up, the parade of bear “know-it-alls” that the financial media will have on display on Friday screaming “Bull Trap” will most likely have us finishing the week on a weak note.
From a technical standpoint, the Nasdaq Composite completed the “evening star” on the daily chart, indicating a short-term reversal. Support on the Nasdaq Composite stands at 2,700-2,680, with resistance at 2,900-3,000. Support on the Semiconductor Index (SOX) stands at 650, with resistance in the 750-780 area.
The Nasdaq Composite on a daily basis: tradewindsonline.net
JDS Uniphase (JDSU): Reports Q2 earnings of $0.21 a share, $0.02 better than the First Call consensus of $0.19, vs year-ago earnings of $0.09. Sales of $925 mln were 18% above pro forma combined sales of $786 million for the quarter ended September 30, 2000 and 161% above pro forma combined sales of $354 million for the quarter ended December 31, 1999. Company guided revenue estimates lower for Q3 to about $1.0 bln, less than current estimates of about $1.03 bln. JDSU cites "uncertain carrier capital spending prospects, customer inventory adjustments, and a somewhat lower level of near-term sales visibility" for the change. Keeps EPS guidance roughly intact.
Sapient (SAPE): Reports Q4 earnings of $0.10 a share, in line with the First Call consensus of $0.10, vs year-ago earnings of $0.08. Revenues rose 70.1% to $139.18 mln from a year-ago of $81.82 mln.
Globespan Semi (GSPN): Reports Q4 earnings of $0.20 a share, $0.01 better than the First Call consensus of $0.19, vs year-ago earnings of $0.01. Revenues rose 519.4% to $130.78 mln (vs $128 mln consensus) from a year-ago of $21.11 mln. Company did not offer any guidance.
PMC-Sierra (PMCS): Reports Q4 earnings of $0.34 a share, in line with the First Call consensus of $0.34, vs year-ago earnings of $0.14. Revenues rose 152.0% to $231.65 mln (vs $229 mln consensus) from a year-ago of $91.94 mln. On conference call, company said they are in the "midst of an inventory correction." In Q4, book-to-bill was "significantly below one, it was weak at the end of the quarter and is continuing into Q1." Sales forecast for Q1 at $160-$170 mln, and up 30% for all of 2001. The $160-$170 mln is well below Q4's sales of $230 mln and consensus of $260 mln. PMCS was halted and reopened down 30 points. Companies that this negative guidance could affect are Cisco (CSCO) and Lucent Technologies (LU).
E.piphany (EPNY): Reports Q4 loss of $0.08 a share, $0.03 better than the First Call consensus of ($0.11). Revenues rose 464.7% to $49.21 mln (vs $47 mln consensus) from a year-ago of $8.71 mln.
BroadVision (BVSN): Reports Q4 earnings of $0.02 a share, $0.03 worse than the First Call consensus of $0.05, vs year-ago earnings of $0.03. Revenues rose 212.9% to $136.88 mln (vs $133 mln consensus) from a year-ago of $43.74 mln.
Corvis (CORV): Reports Q4 loss of $0.07 a share, in line with the First Call consensus of ($0.07). Revenues $45.99 mln vs $34 mln consensus (no revenues in the year-ago period), recognizes revenue from its all-optical switch for the first time.
Art Tech Group (ARTG): Reports Q4 earnings of $0.10 a share, $0.02 better than the First Call consensus of $0.08. Revenue increased 372% to $62.8 mln. Company raised guidance, expecting revenue of $70 - $72 mln for Q1 and $325 - $335 mln for fiscal year, and issued an upside preannouncement for FY01, seeing EPS of $0.54-0.56 vs. current EPS estimate of $0.49.
QUALCOMM (QCOM): Reports Q1 earnings of $0.29 a share, $0.01 better than the First Call consensus of $0.28, vs year-ago earnings of $0.25. Revenues fell 10.4% to $684.02 mln (vs $718 mln consensus) from a year-ago of $763.7 mln. Company said that it is comfortable with Q2 consensus of $0.29 and FY01 consensus of $1.27.
Excite@Home (ATHM): Reports Q4 loss of $0.09 a share, in line with the First Call consensus of ($0.09), vs year-ago of breakeven. Revenues rose 31.3% to $169.06 mln (vs $190 mln consensus) from a year-ago of $128.75 mln. Company warned for Q1 and FY01 due to "ongoing weakness in the online and traditional advertising markets.” It now sees Q1 revenues down 12-15% sequentially, and a loss of $0.13-0.14 vs consensus of -$0.04. Full year loss now seen at $0.24-0.26 from current consensus loss of $0.04 |
