RECAP & STOCKS TO WATCH FOR FRIDAY, 2-2-01
Blue chips outpaced the rest of the indexes today, as the Dow finished positive for a fourth straight session. The Nasdaq Composite finished with modest gains, buoyed mainly by the networking and software sectors. The major averages meandered most of the day, moving in and out of positive territory, as traders took a breather from new positions after Wednesday’s 50 basis point rate cut by the Fed.
The Nasdaq Composite rose 10 points to close at 2,782. Volume was 1.7 billion shares, with 106 new highs compared to 17 new lows. Blue chips rallied as the Dow added 96 points to finish at 10,983. Volume on the Big Board was 1 billion shares with 238 stocks making new highs compared to 6 new lows.
Morgan Stanley’s Byron Wein said in a note to clients that many stocks have moved up ahead of the fundamentals, in anticipation of lower interest rates. He believes the market is consolidating, having moved out of bear territory.
From a technical standpoint, support on the Nasdaq Composite stands at 2,700, with resistance at 2,900-3,000. Support on the DJIA stands at 10,700, with resistance at 11,000. Support on the Semiconductor Index (SOX) stands at 685, the index’s 20-day Moving Average, with resistance in the 750 area. The sideways action in the indexes this week is a healthy consolidation for the markets’ longer term outlook.
American Power (APCC): Reports Q4 earnings of $0.20 a share, $0.03 worse than the First Call consensus of $0.23, vs year-ago earnings of $0.34. Revenues rose 4.3% to $407.30 mln from a year-ago of $390.62 mln. Due to weaker than expected industry conditions, company is rescinding their previous guidance for the year 2001.
Activision (ATVI): Reports Q3 earnings of $0.70 a share, $0.10 better than the First Call consensus of $0.60, vs year-ago earnings of $0.75. Revenues fell 1.6% to $264.47 mln from a year-ago of $268.86 mln. Company issues upside pre-announcement for FY01, seeing EPS of about $0.74 vs current EPS estimate of $0.63.
Incyte Pharms (INCY): Reports Q4 loss of $0.11 a share, in line with the First Call consensus of ($0.11). Revenues rose 20.4%, to $55.42 mln from a year-ago of $46.02 mln. Revenue guidance for 2001 is in the range of $220 to $240 mln.
Silicon Storage (SSTI): Reports Q4 earnings of $0.42 a share, $0.04 worse than the First Call consensus of $0.46, vs year-ago earnings of $0.07. Revenues rose 233.2% to $161.04 mln from a year-ago of $48.33 mln. Company warns for Q1, seeing EPS of $0.25-0.29 vs current EPS estimate of $0.51
Cablevision (CVC): Company announces that the special stockholders meeting scheduled for Friday, February 2, 2001 is expected to be adjourned until February 16, 2001. Also announces that Metro-Goldwyn-Mayer (MGM) announced today an agreement for MGM to acquire a 20% ownership interest in four of Rainbow Media's successful national cable networks - American Movie Classics (AMC), Bravo, The Independent Film Channel (IFC) and We: Women's Entertainment (formerly Romance Classics) for $825 million in cash.
Stratos Lightwave (STLW): Company sees Q3 sequential revenue growth of 17%, making new estimate about $40.86 mln, in line with current consensus revenue estimates. |
