From Briefing.com: The markets finished with relatively modest gains -- mixed -- Thursday, yet those flattish closing levels mask the real story. Despite softer than expected economic data --in the form of both Factory Orders, and Initial Claims -- the major averages closed comfortably off their worst levels of the session. In the case of the Nasdaq, the index finished a sizeable 32 points, or 2.0% off its intraday low at 1614.
Now at the risk of belaboring these volume stats, Thursday was yet another session in which the Nasdaq comfortably surpassed the 2.4 billion share mark. So while it may be repetitious, the pronounced buy interest underlying this current leg higher remains worthy of note.
From a technical perspective, the immediate picture remains similar to the outlook as it was characterized this morning. That is, the immediate question pertains to how the indices respond to their respective breakout points -- again, these are Dow 9,000 and Nasdaq 1619. If the indices can hold those areas on a closing basis, the near-term bias will remain bullish.
As we suggested yesterday, Friday morning marks the real point of interest as far as jobs data. The May Employment Report is set for release at 8:30 ET, and the chances are good this report sets the tone for the session. Note that current consensus estimates call for Non-Farm Payrolls to drop 30K, and the Unemployment Rate is projected at 6.1%. Also be aware that Intel (INTC) reaffirmed Q2 guidance after hours, narrowing its projected revenue range to $6.6-$6.8 billion from a prior range of $6.4-$7.0 billion. For a more detailed look at upcoming reports, please visit Briefing.com's Earnings Calendar and Economic Calendar. -- Mike Ashbaugh -- Briefing.com
5:32PM Thursday After Hours price changes vs 4pm ET levels: When Intel (INTC 21.77 -0.07) speaks about its business prospects, you can bet the market will make a point of listening. Thus, there is plenty of attention on tonight's mid-quarter update from the world's leading chip maker. At this point, there have been few, if any, surprises from Intel and, consequently, there has been little change in the futures market. Presently, the S&P futures, at 991, are 1 point above fair value while the Nasdaq 100 futures, at 1232, are in line with fair value.
What Intel had to say in its press release was that it was narrowing its Q2 (Jun) revenue guidance to a range of $6.6-6.8 bln from prior guidance of $6.4-7.0 bln. The only color given in its prepared remarks was that its Architecture business is trending to the high end of the normal seasonal pattern and that demand for communications products remains soft. All other expectations were left unchanged. For a review of the company's prior guidance, a read of its Q1 earnings report would be in order.
Sticking with semiconductor companies, and picking up on Intel's contention that demand for communications products remains soft, TriQuint Semiconductor (TQNT 4.65 -0.76) is feeling the heat in extended action after lowering its FY03 sales and EPS expectations. Specifically, TQNT noted that it now expects to post a net loss in the range of $0.26-0.36 and revenues of $290-310 mln. TQNT had previously forecast $320 mln for the low end of its revenue expectations. Current Reuters Research consensus estimates stand at ($0.30) and $314.2 mln. Related stocks include the likes of AMCC, CNXT and RFMD.
The highflyer in the after hours session is ImClone Systems (IMCLE 46.85 +8.32). An announcement from the company that it will be re-submitting a marketing application in 2H03 for its cancer drug, Erbitux, has acted as the catalyst for the buying interest.
In other developments, Dow component, McDonald's (00C 19.28), should garner some increased attention tomorrow in the wake of a report that the head of its U.S. business characterized comparable sales in May as very encouraging in an interview with Reuters.
For added detail on these, and other after hours items, be sure to visit Briefing.com's In Play, Earnings Calendar, and Guidance pages.-- Patrick J. O'Hare, Briefing.com
4:28PM Intel: Reuters Research consensus estimate $6.65 bln vs guidance of $.6.6-$6.8 bln (INTC) 21.84 +0.46: -- Update --
4:16PM Intel Q2 business within expectations; narrows range of rev guidance to $6.6-$6.8 bln (INTC) 21.85 +0.47: -- Update -- Previous range had been $6.4-$7.0 bln.
4:13PM TriQuint Semi lowers full-year guidance (TQNT) 5.41 +0.44: Co reaffirms its Q2 rev guidance of flat to up slightly from Q1's $71.7 mln, and sees Q2 net loss of $0.11-$0.14 (which includes a restructuring charge of $3 mln). In addition, the co lowers 2003 guidance to a net loss of $0.26-$0.36 on $290-$310 mln in revs, citing weaker than anticipated demand in Asia for both handsets and infrastructure and continued softness in telecom infrastructure markets.
3:17PM Unusual Volume -- TranSwitch soars 25% on 3 mln shares, 4x avg (TXCC) 1.54 +0.31:
3:10PM Western Digital nears May/52 wk high at 12.99 (WDC) 12.89 +0.48:
2:59PM QLogic picking up steam into the close, nears 52-wk high (QLGC) 50.87 +0.45:
2:25PM Kulicke & Soffa receives 'major' purchase order from Nantong Fujitsu Microelectronics (KLIC) 7.25 +0.55: The order quantity is an additional 50 Nu-Tek(TM) ball bonders to be delivered in accordance with the production needs of Nantong Fujitsu. In addition, Nantong Fujitsu also expressed their intention that K&S will be their major supplier of wire bonders over the next 12 month time period.
2:22PM Advanced Micro slips back toward support (AMD) 6.93 -0.08: -- Technical -- Stock faltered this afternoon but support in the 6.91/6.90 area (range bottom of last few days) has held firm. If this floor is taken out, a more important barrier is at 6.81/6.80 (May/June lows) with the 200 day sma at 6.64. Range top resistances are at 7 and 7.08.
12:43PM Contributing to RMBS gains is chatter of favorable court decision on document disclosure in FTC case 19.00 +1.05:
12:31PM Applied Micro reaffirms outlook (AMCC) 6.20 +0.56: Co said at the Smith Barney Semi Conference that "... order activity has strengthened since early April... However, given concerns that abound in our end markets, we are not ready to call this any meaningful trend. To reiterate, we are not altering our guidance at this time, but are encouraged by the bookings momentum so far this quarter."
12:35PM PMCS +2.7% finds bid after AMCC +11.5% issues positive comments :
12:29PM National Semi resumes trading (NSM) 24.10 -0.58: -- Update --
12:24PM National Semi beats by 3 cents, guides Q1 revs below consensus (NSM) 24.13 -0.55 halted: Reports Q4 (May) earnings of $0.12 per share, $0.03 better than the Reuters Research consensus of $0.09; revenues rose 1.4% year/year to $425.3 mln vs the $427.9 mln consensus. Co sees Q1 revs flat to down 4%, or $408-$425 mln, vs consensus of $428.4 mln.
9:02AM Intersil upped to Outperform at Gerard Klauer (ISIL) 23.21: The upgrade from Neutral is based on improving fundamentals in key business segments, co's positioning in the WLAN space, and valuation relative to peer group. Firm's 12-month price target is $30.
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