RECAP & STOCKS TO WATCH FOR TUESDAY, 1-30-01
For the second time in a few weeks, Cisco (CSCO) CEO John Chambers issued cautionary statements, and again the markets shrugged off what could have been a disaster for the tech sector. The statements did keep the networking sector in the red throughout the session, but the group finished well off session lows. The session was plagued by anemic volume, as the major indexes simply marked time in the face of Wednesday’s FOMC announcement.
The Nasdaq Composite added another 56 points to close at 2,838. Volume was 1.9 billion shares, with 120 new highs compared to 22 new lows. Blue chips followed the techs as the Dow, buoyed by a 9% gain in Hewlett-Packard (HP), added 42 points to finish at 10,702. Volume on the Big Board was 1 billion shares with 199 stocks making new highs compared to 8 new lows.
From a technical standpoint, the Nasdaq Composite completed the “evening star” on the daily chart, indicating a short-term reversal, but the index bounced off of its 50-day Moving Average. Support on the Nasdaq Composite stands at 2,700-2,680, with resistance at 2,900-3,000. The Semiconductor Index formed a “hammer” candle on Friday, and the reversal to the upside today confirmed the pattern. Support on the Semiconductor Index (SOX) stands at 650, the index’s 20-day Moving Average, with resistance in the 740-750 area.
The Semiconductor Index on a daily basis: tradewindsonline.net
Earnings Spotlight: This week is another heavy earnings week with the following companies scheduled to report: Nokia (NOK), Adv. Fibre Comm (AFCI), Amazon.com (AMZN), Avant (AVNT), Chiron (CHIR), Electronic Arts (ERTS), F5 Networks (FFIV), Legato Systems (LGTO), New Focus (NUFO), Nuance Comms (NUAN), Oplink Comms (OPLK), RealNetworks (RNWK), Terayon Comms (TERN) on Tuesday, AOL Time Warner (AOL), StorageNetworks (STOR), Digital Lightwave (DIGL), Maxim Integrated (MXIM), PeopleSoft (PSFT), WebMethods (WEBM) on Wednesday, and Avocent (AVCT), Sprint FON (FON), Incyte Pharms (INCY), Silicon Storage (SSTI) on Thursday.
IDEC Pharm (IDPH): Reports Q4 earnings of $0.12 a share, in line with the First Call consensus of $0.12, vs year-ago earnings of $0.05. Revenues were $45.8 million, up 43%compared with $32.0 million for Q4 of 1999.
Expedia (EXPE): Reports Q2 loss of $0.06 a share, $0.09 better than the First Call consensus of ($0.15); revenues rose 80.8% to $79.68 mln from a year-ago of $44.06 mln.
InfoSpace.com (INSP): Reports Q4 earnings of $0.04 a share, $0.03 better than the First Call consensus of $0.01. Revenues rose 124.9% to $66.05 mln from a year-ago of $29.37 mln.
eGain Comms (EGAN): Reports Q2 loss of $0.45 a share, $0.18 better than the First Call consensus of ($0.63). Revenues rose 480.7% to $13.84 mln from a year-ago of $2.38 mln. Company also announced that it is revising its projections as to when it anticipates achieving profitability. The company will breakeven on a cash basis by December 2001, two quarters ahead of previous estimates.
Chartered Semi (CHRT): Reports Q4 earnings of $0.56 a share, $0.04 better than the First Call consensus of $0.52, vs year-ago earnings of $0.18. Revenues rose 47.4% to $318.68 mln from a year-ago of $216.23 mln. Company warns for Q1, seeing EPS of $0.04-0.06 vs. current estimate of $0.38. Company also sees revenues down sequentially 15-20%. |
