From Briefing.com: Tech stocks led the market steadily lower on Monday. The Briefing.com Tech Index (BTI) declined 2.0%. Decliners outnumbered advancers 3.9:1, with decliners sliding 3.4% and advancers climbing 2.8%. The Philadelphia Semiconductor Index (SOXX 495.81 -13.99) fell 2.74%, its third consecutive losing session. There were no advancers among the 18 companies that make up the index, which dropped below its short-term lower volatility band, suggesting the index is due for a short-term snap back.
The major indices opened the day higher but slid steadily lower throughout the session. The Dow (DJI 10609.62 -9.41) eased 0.09%. The S&P (SPX 1140.99 -3.12) slipped 0.27%. The Nasdaq Composite (IXIC 2007.52 -30.41), dragged down by tech stocks, dropped 1.49%.
Qualcomm (QCOM 62.43 +3.03) rose 5.1% after raising Q2 guidance.
Among today's movers, mmO2 PLC (OOM 19.50 +2.40) jumped 14.0% following reports the company had rejected an offer from Royal KPN (KPN 8.03 -0.49), Wind River Systems (WIND 9.51 +0.89) gained 10.0% after posting Q4 results, and Ditech Communications (DITC 16.49 -2.86) dropped 14.8%.
Looking ahead to Tuesday, Ingram Micro (IM 16.14 -0.43) and Semtech (SMTC 24.46 -0.87) report after the close.--Ping Yu, Briefing.com
5:48PM Monday After Hours prices levels vs. 4 pm ET: A quiet after hours trade that has reflected the limited number of corporate releases - presently, the S&P futures, at 1140, are flat with fair value, and the Nasdaq 100 futures, at 1466, are 1 point above fair value. The Nasdaq's descent below its 50-day simple moving average continues to curb widespread buying interest.
The below table lists tonight's most notable news items, and the reasons behind the stock's resulting move:
After Hours Mover % Change Move Reason for Move
Agile Software (AGIL) +8% Application software provider reports a Q3 (Jan) net loss of $0.02 as compared to the Reuters Research consensus estimate calling for ($0.03); Revenues also jumped 46% year/year to $26.2 mln; Stock had slipped below its 50-day simple moving average in recent sessions
Netflix (NFLX) +2% On-demand entertainment service raises its outlook for Q1 (Mar) - now expects ending subscriber totals to be 1,860-1,935 (previously 1,750-1,825) and revenues of $96-101 mln (previously $94-99 mln); Announcement counters a Barron's story today that said NFLX is trading at lofty valuations despite concerns over growth and competition
Novell (00C0) +2% Provider of network business solutions matches the Q1 (Jan) EPS consensus estimate of $0.03; Company notes that it is moving to deliver enterprise-class network services for mixed environments, including Linux; Competitors include ACN, BEAS, CA, EDS, MSFT, and SUNW
Synopsys (SNPS) -14% Supplier of electronic design automation (EDA) software announces it has entered into a definitive agreement to acquire Monolithic System Technology (MOSY) in a 50/50 cash and stock transaction valued at ~ $432 mln, or $13.50/share; Synopsys also beats by $0.02 in its Q1 (Jan) report, but warns for Q2 (Apr) partially citing the Monolithic deal
Zoran (ZRAN) +9% Developer of integrated circuits misses the Street's EPS estimate by $0.05 in its delayed Q4 (Dec) report; Stock finds buying interest, however, as the company forecasts FY04 revenues above the market's expectation; ZRAN had also unwound 11% since the beginning of the year on the delay of the Q4 results
Tomorrow, a number of diverse items should grab the market's attention. FOMC Chairman Greenspan will be testifying in front of the Government Sponsored Enterprises committee and could provide more insight into the monetary report he gave to Congress a few weeks ago. Retailers Federated (FD) and Home Depot (HD) will also be reporting, and February Consumer Confidence will be released at 10 ET.
For more details on these and other developments, be sure to visit Briefing.com's Stock Market Update and Daily Sector Wrap.-- Heather Smith, Briefing.com
4:54PM Photronics announces resignation of CEO (PLAB) 18.73 -0.43: Co announced the resignation of Dan Del Rosario, the Co's CEO. Mr. Del Rosario, who had also served on the Co's Board of Directors, will resign both positions effective immediately in order to pursue other interests. Constantine "Deno" Macricostas, Chairman, will assume the additional responsibilities of CEO until a successor is named. A search has already begun.
4:14PM Zoran misses by $0.05, ex items; guides for Q1 & Y04 (ZRAN) 16.00 -0.70: Reports Q4 (Dec) earnings of $0.03 per share, excluding items, $0.05 worse than the Reuters Research consensus of $0.08; revenues rose 75.6% year/year to $70.2 mln vs the $71.8 mln consensus. Co also guides, sees Q1 EPS of $0.03-0.05 and revenues of $76-78 mln, estimates are $0.06 and $69.1 mln, respectively; sees Y04 revenues in range of $360-380 mln vs an R.R. estimate of $334.8 mln.
Broadcom (BRCM) 39.98 -1.20 : Co filed S-4 document with SEC registering 30 mln shares (approx value $1.18 bln) that may be issued in acquisition transactions that company may make from time to time. In an S-3 document, co filed a preliminary prospectus for a $750 mln mixed shelf.
Intel (INTC) 29.00 -1.00 : Co disclosed in 10-K that in Aug 2003, in connection with the IRS regular examination of Intel's tax returns for the years 1999 and 2000, the IRS proposed certain adjustments to the amounts reflected by Intel on these returns as a tax benefit for its export sales. If the IRS issues formal assessments consistent with the notices and ultimately prevails in its position, Intel's federal income tax liability for these years would increase by approx $600 mln, plus interest. The IRS may make similar claims for years subsequent to 2000 in future audits. Intel disputes the proposed adjustments and intends to pursue this matter through applicable IRS and judicial procedures, as appropriate. Although the final resolution of the proposed adjustments is uncertain, based on currently available information, management believes that the ultimate outcome will not have a material adverse effect on the co's financial position, cash flows or overall trends in results of operations.
Advanced Micro Devices (AMD) 13.99 -0.66 : UBS lowered Advanced Micro Devices tgt to $17 from $20 and reduced their estimates based on lower pricing in the processor business and more competition in the flash business. 2004 sales estimates go to $5.1B from $5.2B and EPS to $0.28 from $0.31 (Reuters consensus $0.37, but note that analysts estimates range from -$0.15 to +1.20). For 2005, firm is decreasing their sales estimates to $5.9B from $6.4B and EPS to $0.72 from $0.87 (consensus $0.58 with a range of -$0.94 to +$2.50). The firm believes that Intel's 90nm manufacturing muscle, which gives it a cost advantage, will increase pricing pressure in processors. INTC's plan to introduce NOR flash on 90nm likely will also pressure Advanced Micro on cost.
Vitesse Semi (VTSS) 8.10 -0.37 : Merrill Lynch reinstated coverage of Vitesse Semi with a Neutral rating; firm says stock is trading at a 25% premium to its peer group, and despite positive new product momentum, they believe that the valuation mostly reflects the co's intermediate-term growth prospects.
Xicor (XICO) 13.99 -0.23 : After the close, announced company filed $80 mln universal shelf registration. |
