roguetrader
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TXN has earnings after the bell, could set the tone for tomorrow, also some econ numbers pre-markt
macbonzo
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Today we see the problems with the Dow's, rather, (in my opinion) Mickey Mouse "price weighing" system. Because MMM has a "weighting" of 6% and is down 6% it drags the whole index down. Clearly if it wasn't for this the Dow would be positive. Quite why they cannot weight the index by market capitalisation is beyond me.
tradesmart
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Very much a holding pattern day today, with a break beyond the downtrend channel top line; but no buying interest to produce an upside continuation.....
The market is digesting the prior big move down; but positioning itself to react to the PPI/CPI data tomorrow and Wednesday, which will very likely produce another solid move imho……
The direction remains to be seen……..
The market is digesting the prior big move down; but positioning itself to react to the PPI/CPI data tomorrow and Wednesday, which will very likely produce another solid move imho……
The direction remains to be seen……..
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CNBC Market Dispatches
4/18/2005 4:25:30 PM ET
Stocks survive a day of worries
Concerns about the economy, oil prices and inflation are still strong. Despite the averages, though, stocks had a mostly positive day. On tap tomorrow: reports from 5 Dow components and two key economic reports.
Lots and lots of noise. Not a lot of action. And that's probably not a bad thing after last week, when the stock market tanked and the Dow Jones industrials lost 420 points in three days.
Today, despite lots of hand-wringing and worried talk about how far the market might fall, the major averages were little changed: The Dow was down about 16 points. The Nasdaq Compositeand the Standard & Poor's 500 Index were both up slightly.
Oddly, that may be the bad news on the day.
The good news is that the U.S. market resisted sell-offs from Tokyo to London. Twenty Dow stocks finished higher on the day, led by J.P. Morgan Chase (JPM, news, msgs), up 2.3%. The Dow closed lower basically because of one stock, 3M (MMM, news, msgs), which fell about 6%, despite a decent report in the first quarter. Some 331 stocks in the S&P 500 were higher, led by Sanmina-Science (SANM, news, msgs), a manufacturer of printed circuit boards, and Nucor (NUE, news, msgs), the steel maker, which won investor praise when it announced the acquisition of Marion Steel.
Tomorrow may be a different story. Not only do five Dow components issue quarterly earnings reports but so do a number of other key companies.
In addition, the government comes out with two key economic reports tomorrow: the Producer Price Index and Housing Starts and Building Permits. Housing has been a key driver of the economy over the last five years. Briefing.com says economists predict 2.06 million starts (on a seasonally-adjusted annual rate.) That's down 6% from March, but let's put the numbers in perspective. Housing starts above 2 million is very strong.
The Producer Price Index will be closely watched because of what it might say about how oil prices and, possibly, interest rates are affecting the economy. The forecast is for a gain of 0.2% for March. Anything above that level will probably make investors more nervous than they are already. It could stop what's been an interesting bond rally. The yield on the 10-year Treasury note fell to 4.25% today from 4.27% on Friday.
The Dow Five and the other big players
Talk about big names: General Motors (GM, news, msgs), Johnson & Johnson (JNJ, news, msgs), Pfizer (PFE, news, msgs) and Coca-Cola (KO, news, msgs), four Dow components, all report before the market opens. Intel (INTC, news, msgs), the last of the five Dow stocks, reports after the close.
What investors will want to hear is not so much the earnings, but, since stock prices reflect future expectations, the outlooks. GM and Intel will probably command the most attention. GM recently said it was chopping its estimates and jobs because sales have not been nearly as strong as expected, and its bonds are dangerously close to being rated junk. Nonetheless, GM led the Dow with a 2.3% gain.
Intel should produce a relatively cheerful report. Last month, the chip giant raised the lower end of its first-quarter revenue guidance to $9.2 billion to $9.4 billion, and it boosted its projection for its gross profit margin from 55% to 57%. Analysts see the revenue coming in at $9.3 billion and earnings at 31 cents, up 19% from a year ago. The stock was up 10 cents today.
The glamour stocks include Yahoo! (YHOO, news, msgs), Wells Fargo (WFC, news, msgs), Merrill Lynch (MER, news, msgs), D.H. Horton (DHI, news, msgs) and Taser International (TASR, news, msgs). Yahoo! has already boosted guidance, and the stock was 10 cents higher today. Horton expects earnings at 75 cents to 79 cents. Analysts expect 80 cents. Taser has been troubled of late because of concerns about the safety of its stun gun. The shares are down about 75% from a peak on Dec. 31.
4/18/2005 4:25:30 PM ET
Stocks survive a day of worries
Concerns about the economy, oil prices and inflation are still strong. Despite the averages, though, stocks had a mostly positive day. On tap tomorrow: reports from 5 Dow components and two key economic reports.
Lots and lots of noise. Not a lot of action. And that's probably not a bad thing after last week, when the stock market tanked and the Dow Jones industrials lost 420 points in three days.
Today, despite lots of hand-wringing and worried talk about how far the market might fall, the major averages were little changed: The Dow was down about 16 points. The Nasdaq Compositeand the Standard & Poor's 500 Index were both up slightly.
Oddly, that may be the bad news on the day.
The good news is that the U.S. market resisted sell-offs from Tokyo to London. Twenty Dow stocks finished higher on the day, led by J.P. Morgan Chase (JPM, news, msgs), up 2.3%. The Dow closed lower basically because of one stock, 3M (MMM, news, msgs), which fell about 6%, despite a decent report in the first quarter. Some 331 stocks in the S&P 500 were higher, led by Sanmina-Science (SANM, news, msgs), a manufacturer of printed circuit boards, and Nucor (NUE, news, msgs), the steel maker, which won investor praise when it announced the acquisition of Marion Steel.
Tomorrow may be a different story. Not only do five Dow components issue quarterly earnings reports but so do a number of other key companies.
In addition, the government comes out with two key economic reports tomorrow: the Producer Price Index and Housing Starts and Building Permits. Housing has been a key driver of the economy over the last five years. Briefing.com says economists predict 2.06 million starts (on a seasonally-adjusted annual rate.) That's down 6% from March, but let's put the numbers in perspective. Housing starts above 2 million is very strong.
The Producer Price Index will be closely watched because of what it might say about how oil prices and, possibly, interest rates are affecting the economy. The forecast is for a gain of 0.2% for March. Anything above that level will probably make investors more nervous than they are already. It could stop what's been an interesting bond rally. The yield on the 10-year Treasury note fell to 4.25% today from 4.27% on Friday.
The Dow Five and the other big players
Talk about big names: General Motors (GM, news, msgs), Johnson & Johnson (JNJ, news, msgs), Pfizer (PFE, news, msgs) and Coca-Cola (KO, news, msgs), four Dow components, all report before the market opens. Intel (INTC, news, msgs), the last of the five Dow stocks, reports after the close.
What investors will want to hear is not so much the earnings, but, since stock prices reflect future expectations, the outlooks. GM and Intel will probably command the most attention. GM recently said it was chopping its estimates and jobs because sales have not been nearly as strong as expected, and its bonds are dangerously close to being rated junk. Nonetheless, GM led the Dow with a 2.3% gain.
Intel should produce a relatively cheerful report. Last month, the chip giant raised the lower end of its first-quarter revenue guidance to $9.2 billion to $9.4 billion, and it boosted its projection for its gross profit margin from 55% to 57%. Analysts see the revenue coming in at $9.3 billion and earnings at 31 cents, up 19% from a year ago. The stock was up 10 cents today.
The glamour stocks include Yahoo! (YHOO, news, msgs), Wells Fargo (WFC, news, msgs), Merrill Lynch (MER, news, msgs), D.H. Horton (DHI, news, msgs) and Taser International (TASR, news, msgs). Yahoo! has already boosted guidance, and the stock was 10 cents higher today. Horton expects earnings at 75 cents to 79 cents. Analysts expect 80 cents. Taser has been troubled of late because of concerns about the safety of its stun gun. The shares are down about 75% from a peak on Dec. 31.
roguetrader
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NVLS sliding in after hours after matching estimates and beating on revenue but issuing cautious guidance, describes the future as "challenging" Company is "Cautiously optimistic"
TXN rising after reporting earnings, beats by a penny, rev light
TXN rising after reporting earnings, beats by a penny, rev light
An important component of the Dow, KO, hit the newswires, with a conclusion of the investigation.
Associated Press
Coke: Justice Dept. Ends 2-Year-Old Probe
Monday April 18, 3:43 pm ET
By Harry R. Weber, AP Business Writer
Coca-Cola Says Justice Department Has Ended 2-Year-Old Probe; Reaches Settlement With SEC
ATLANTA (AP) -- The Justice Department has abruptly ended without taking action its nearly two-year-old criminal investigation of allegations raised in a whistleblower lawsuit of accounting irregularities at The Coca-Cola Co., the world's biggest soft drink maker said Monday.
Separately, the Atlanta-based company said it has reached a settlement with the Securities and Exchange Commission over its business practices in Japan.
The end to the dual investigations closes an embarrassing chapter for the company that was sparked by a 2003 lawsuit filed by former Coke manager Matthew Whitley, who claimed he was fired in retaliation for reporting to senior management allegations of fraud and accounting mistakes.
It was not clear why the Justice Department dropped its investigation, which included grand jury testimony from several current and former Coke executives. Patrick Crosby, a spokesman for the U.S. Attorney's office in Atlanta, declined to comment. Coke spokesman Ben Deutsch said only that the company received a letter Monday from the Justice Department saying it was terminating its probe.
Among other things, Whitley alleged that Coke rigged a marketing test at Burger King restaurants in 2000 and made false or misleading statements or omissions in connection with the reporting of sales volume.
Another facet of the Justice Department investigation involved Coke's relationship with Lancer Corp. of San Antonio. Whitley claimed in his lawsuit that Coke and Lancer hid a slush fund by filing false financial information to the SEC about Lancer's sales of equipment to Coke.
Coke denied most of the allegations, but admitted that some of its officials undermined the Burger King marketing test. It later settled Whitley's lawsuit for $540,000.
In a memo to employees Monday, chief executive Neville Isdell said that under the settlement with the SEC, Coke has agreed to take unspecified remedial actions in the areas of corporate compliance and disclosure. He said in the memo that the SEC settlement does not include a monetary fine or penalty and added that Coke does not admit or deny wrongdoing.
According to an order issued Monday, the SEC found that, at or near the end of each reporting period between 1997 and 1999, Coca-Cola implemented an undisclosed practice in Japan in which Japanese bottlers were offered extended credit terms to induce them to purchase quantities of beverage concentrate the bottlers otherwise would not have purchased until a following period.
Coca-Cola typically sells gallons of concentrate to its bottlers corresponding to its bottlers' sales of finished products to retailers. As a result, typically bottlers' concentrate inventory levels increase approximately in proportion to their sales of finished products to retailers.
However, as a result of Coke's practice, from 1997 to 1999 its Japanese bottlers' concentrate inventory levels increased at a rate more than five times greater than that of finished product sales to retailers, the SEC said. That pulled forward sales from subsequent periods and made it likely that Coca-Cola's bottlers would purchase less concentrate in the later periods.
The practice, known as "channel stuffing," contributed approximately $0.01 to $0.02 to Coca-Cola's quarterly earnings per share and was the difference in 8 out of the 12 quarters from 1997 through 1999 between Coca-Cola meeting and missing analysts' earnings estimates.
Coca-Cola shares fell 48 cents to $40.81 in afternoon trading on the New York Stock Exchange. Its shares gave ranged from $40.03 to $54.
Isdell said he is glad the dual investigations are over.
"We continue to expect all of our operations around the world to adhere to the highest ethical standards," Isdell said. "The measures identified in this settlement and those we have taken over the past few years are an important step forward in ensuring our systems continually improve. That is an obligation we all share that requires constant vigilance."
http:/
Associated Press
Coke: Justice Dept. Ends 2-Year-Old Probe
Monday April 18, 3:43 pm ET
By Harry R. Weber, AP Business Writer
Coca-Cola Says Justice Department Has Ended 2-Year-Old Probe; Reaches Settlement With SEC
ATLANTA (AP) -- The Justice Department has abruptly ended without taking action its nearly two-year-old criminal investigation of allegations raised in a whistleblower lawsuit of accounting irregularities at The Coca-Cola Co., the world's biggest soft drink maker said Monday.
Separately, the Atlanta-based company said it has reached a settlement with the Securities and Exchange Commission over its business practices in Japan.
The end to the dual investigations closes an embarrassing chapter for the company that was sparked by a 2003 lawsuit filed by former Coke manager Matthew Whitley, who claimed he was fired in retaliation for reporting to senior management allegations of fraud and accounting mistakes.
It was not clear why the Justice Department dropped its investigation, which included grand jury testimony from several current and former Coke executives. Patrick Crosby, a spokesman for the U.S. Attorney's office in Atlanta, declined to comment. Coke spokesman Ben Deutsch said only that the company received a letter Monday from the Justice Department saying it was terminating its probe.
Among other things, Whitley alleged that Coke rigged a marketing test at Burger King restaurants in 2000 and made false or misleading statements or omissions in connection with the reporting of sales volume.
Another facet of the Justice Department investigation involved Coke's relationship with Lancer Corp. of San Antonio. Whitley claimed in his lawsuit that Coke and Lancer hid a slush fund by filing false financial information to the SEC about Lancer's sales of equipment to Coke.
Coke denied most of the allegations, but admitted that some of its officials undermined the Burger King marketing test. It later settled Whitley's lawsuit for $540,000.
In a memo to employees Monday, chief executive Neville Isdell said that under the settlement with the SEC, Coke has agreed to take unspecified remedial actions in the areas of corporate compliance and disclosure. He said in the memo that the SEC settlement does not include a monetary fine or penalty and added that Coke does not admit or deny wrongdoing.
According to an order issued Monday, the SEC found that, at or near the end of each reporting period between 1997 and 1999, Coca-Cola implemented an undisclosed practice in Japan in which Japanese bottlers were offered extended credit terms to induce them to purchase quantities of beverage concentrate the bottlers otherwise would not have purchased until a following period.
Coca-Cola typically sells gallons of concentrate to its bottlers corresponding to its bottlers' sales of finished products to retailers. As a result, typically bottlers' concentrate inventory levels increase approximately in proportion to their sales of finished products to retailers.
However, as a result of Coke's practice, from 1997 to 1999 its Japanese bottlers' concentrate inventory levels increased at a rate more than five times greater than that of finished product sales to retailers, the SEC said. That pulled forward sales from subsequent periods and made it likely that Coca-Cola's bottlers would purchase less concentrate in the later periods.
The practice, known as "channel stuffing," contributed approximately $0.01 to $0.02 to Coca-Cola's quarterly earnings per share and was the difference in 8 out of the 12 quarters from 1997 through 1999 between Coca-Cola meeting and missing analysts' earnings estimates.
Coca-Cola shares fell 48 cents to $40.81 in afternoon trading on the New York Stock Exchange. Its shares gave ranged from $40.03 to $54.
Isdell said he is glad the dual investigations are over.
"We continue to expect all of our operations around the world to adhere to the highest ethical standards," Isdell said. "The measures identified in this settlement and those we have taken over the past few years are an important step forward in ensuring our systems continually improve. That is an obligation we all share that requires constant vigilance."
http:/
kriesau said:
Europe : Philips (not Dow) Q1 results continue to reflect badly for the Hi-Tech sector.
http://www.nytimes.com/2005/04/19/business/businessspecial3/19philips.html
FetteredChinos
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and up we go?
FetteredChinos
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Dow retraced slightly too. waiting for the open..
reckon we will see 10,180+ before EOD wednesday.
earnings today should move things, knowing my luck, downwards...
reckon we will see 10,180+ before EOD wednesday.
earnings today should move things, knowing my luck, downwards...
Racer said:
DAX and FTSE up 0.3% & 0.4% respectively at 1.45pm today. Dow and Nas 100 futures up 29 pts & 15 pts respectively so the market should open up. However although we might see a rise, maybe even up to the 10150 - 10200 range in the short term, I am still bearish over the slightly longer term.
The market is very volatile at the moment as witnessed by the irrational 100+ points surge between 7.00pm and 8.30pm after the release of the content of the last Fed meeting minutes, which frankly gave little logic for investor comfort. This was then undone on the following days with drops of 100, 125 and 190 pts respectively. Those drops were characterized by high volumes particularly on Friday so this does not augur well for the bulls.
I still expect to see the Dow at around the 9900 mark in the near future - the main question is when.
FetteredChinos
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homing in on 10,180 for a decent start to the week........
come on chaps, just a little further..
FC
come on chaps, just a little further..
FC
FetteredChinos
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half a weeks range from friday's close. as per one of my strats posted on here somewhere (further to the reorganisation).
a short from there holding into friday's close should also do me for the week..
a short from there holding into friday's close should also do me for the week..
