RECAP & STOCKS TO WATCH FOR THURSDAY, 2-22-01
The major indexes again took it on the nose today, as a rally in tech stocks failed and sent the Nasdaq Composite to its lowest close in almost 2 years. Weakness was prevalent in the networking, computer, and Internet stocks, with the chip stocks holding small gains. The Dow, Nasdaq, and S&P 500 are all back below where they were before the Fed began its rate cuts on January 3rd.
The Nasdaq Composite slid another 49 points to close at 2,268, its lowest close since March 3, 1999. Volume was 2 billion shares, with decliners beating advancers by 5 to 2. Blue chips were dragged down by the techs as the Dow fell 204 points to finish at 10,526. Volume on the Big Board was 1.2 billion shares with decliners beating advancers by 2 to 1.
From a technical standpoint, the Nasdaq Composite has broken support at 2,300 and is hovering above the January intra-day low of 2251. The DJIA broke support at 10,700, with new support at 10,500 and 10,300. Support on the Semiconductor Index (SOX) stands at 600 with resistance at 650.
Earnings Spotlight: Companies due to report this week include BEA Systems (BEAS), Marvell Tech (MRVL), Pumatech (PUMA), and VerticalNet (VERT) on Thursday.
Brocade Comms (BRCD): Reported Q1 earnings of $0.13 a share, $0.01 better than the First Call consensus of $0.12, vs year-ago earnings of $0.03. Revenues were $165.0 million, up 286.4% from the $42.7 million reported in Q1 of fiscal 2000. On conference call, company reported that Q2 growth will be modest, or possibly flat. FY 2001 EPS was guided to $0.60 vs the First Call consensus of $0.62. Companies that could be affected by this warning are QLogic (QLGC), Emulex (EMLX ), and McData (MCDT).
ADC Telecom (ADCT): Reported Q1 earnings of $0.07 a share, $0.01 better than the First Call consensus of $0.06, vs year-ago earnings of $0.09. Revenues rose 35.5%, to $804.80 mln from a year-ago of $593.90 mln. Company warned for Q2, seeing EPS of approximately $0.09-$0.10 (vs Zacks consensus of $0.11) from sales of approximately $0.825-$0.870 billion. Company also warned for FY01, seeing EPS of $0.48-0.55 vs current estimate of $0.55.
Portal Software (PRSF): Reports Q4 earnings of $0.04 a share, $0.01 better than the First Call consensus of $0.03, vs year-ago of breakeven. Revenues rose 107.9% to $81.10 mln from a year-ago of $39 mln.
JDS Uniphase (JDSU): Company announced that it has acquired Optical Process Automation, Inc. in a transaction accounted for as a purchase. Terms of the transaction were not disclosed. OPA designs and manufactures automated and semi-automated systems for the manufacture of fiber-optic components and modules. |
