RECAP & STOCKS TO WATCH FOR FRIDAY, 3-2-01
The major indexes put in impressive bounces today, putting aside the doom and gloom, especially from a midday warning by Applied Micro Circuits (AMCC), and riding rebounds in the chip and software sectors. Adding the fuel to the fire was new interpretation of Fed Chief Greenspan’s testimony yesterday that the worst is behind us. Earlier in the session, many tech bellwethers had posted new 52-week lows including Intel (INTC), Sun Microsystems (SUNW), Motorola (MOT), Cisco Systems (CSCO), Oracle (ORCL), Lucent Technologies (LU), and Hewlett-Packard (HWP).
The Nasdaq Composite rose 31 points, after being down as much as 80 points, to close at 2,183. Volume was 2.2 billion shares, with decliners outpacing advancers by 11 to 8. Blue chips followed the techs as the Dow, after being down as much as 193 points, rallied to close down 45 points to finish at 10,495. Volume on the Big Board was 1.28 billion shares with decliners beating advancers 16 to 15.
From a technical standpoint, the Nasdaq Composite has formed a hammer candle, indicating a possible reversal for Friday. The Nasdaq needs to break resistance at 2,300 for any type of follow-through rally, otherwise a lower high will have been put in. The Dow also formed a hammer, with resistance at 10,700, the top of its trading range. The Semiconductor Index (SOX) formed a bullish engulfing candle, which could bring some buying attention to the sector.
Oracle Corp (ORCL): Company warned for Q3, seeing EPS of $0.10 vs. current Zacks mean est. of $0.12. The company said a substantial number of customers decided to delay their IT spending based on the economic slowdown in the United States. Stocks that could be affected by this warning include BEAS, ITWO, VRTS, SEBL, CHKP, MUSE, and VRSN.
Wind River Sys (WIND): Reported Q4 earnings of $0.19 a share, $0.01 better than the First Call consensus of $0.18, vs year-ago earnings of $0.06. Revenues rose 42.8% to $130.25 mln from a year-ago of $91.21 mln. Company warned for FY02, seeing EPS of $0.68-0.70 vs. current EPS estimate of $0.73.
SBC Comms (SBC): Company warned for Q1; sees EPS of $0.50-0.53; current EPS estimate is $0.59.
Sanmina (SANM): Company said Q1 EPS will be $0.34 to $0.35 per share vs. current consensus estimate of $0.35. Sees 2001 EPS of $1.37 to $1.42 vs. current First Call consensus of $1.42. Company also announced that in order to complete the Segerstrom acquisition, they had to increase the total number of shares to be issued. |
