Stock Market Wrapup Apr. 9
Stocks traded timidly on the cusp of first-quarter earnings season, which kicks off after tomorrow's closing bell when aluminum giant Alcoa (NYSE: AA - News) becomes the first major company to report results for the quarter ended March 31st. The major market averages were mixed, with tech shares trading slightly lower, while the other major averages eked out fractional gains. There seemed to be little news to spark activity today, though crude oil prices did drop sharply. The 10-year Treasury note also posted a slight gain in today's trading.
Railroad stocks moved higher after Berkshire Hathaway (NYSE: BKR-B - News) disclosed it had taken a nearly 11% stake in Burlington Northern Santa Fe (NYSE: BNI - News), along with smaller stakes in two other undisclosed railroad companies. Speculation on the remaining candidates focused on Union Pacific (NYSE: UNP - News), Norfolk Southern (NYSE: NSC - News), and CSX (NYSE: CSX - News), all of which closed higher. Burlington Northern shares finished up 6.5%.
In profit news, chipmaker Advanced Micro Devices (NYSE: AMD - News) warned that its Q1 profit will likely come in below forecasts, but its shares still gained 3.8% on short covering. AMD said revenue will be $1.23 billion, or -$475 million shy of the high end of its initial estimates. Unit sales and average selling prices continue to drop due to its price war with rival Intel (Nasdaq: INTC - News), which closed up 2.7%. AMD said it would impose a partial hiring freeze and curtail other spending in an effort to cut costs. The news drew mixed analyst reaction. JMP Securities, which overall sees an upside to AMD, maintained its "market outperform" rating, but cut its target from $17 to $16. Friedman Billings Ramsey, meanwhile, reiterated its "under perform" rating and cut its target from $10 to $9.
Mortgage investment trust American Home Mortgage Investment (NYSE: AHM - News) plunged -15.2% after the company sharply cut its Q1 earnings forecast. The firm focuses on the prime and near-prime sectors, not subprime, but it warned investors that problems in the secondary mortgage and mortgage-backed securities markets will result in reduced profits of 40 cents to 60 cents a share, sharply lower than its earlier forecast of $1.11 to $1.17 a share in earnings. The company also cut its dividend to 70 cents from $1.12.
In tech news, shares of Internet phone company Vonage Holdings (NYSE: VG - News) sank sharply after the company came up on the wrong end of another ruling in its patent dispute with Verizon Communications (NYSE: VZ - News). Last Friday, a federal judge ruled Vonage must stop adding new customers; the company immediately appealed and was granted a temporary stay. The company earlier was found to be in violation of several basic patents held by Verizon.
By the Bullmarket.com Staff
Railroad stocks moved higher after Berkshire Hathaway (NYSE: BKR-B - News) disclosed it had taken a nearly 11% stake in Burlington Northern Santa Fe (NYSE: BNI - News), along with smaller stakes in two other undisclosed railroad companies. Speculation on the remaining candidates focused on Union Pacific (NYSE: UNP - News), Norfolk Southern (NYSE: NSC - News), and CSX (NYSE: CSX - News), all of which closed higher. Burlington Northern shares finished up 6.5%.
In profit news, chipmaker Advanced Micro Devices (NYSE: AMD - News) warned that its Q1 profit will likely come in below forecasts, but its shares still gained 3.8% on short covering. AMD said revenue will be $1.23 billion, or -$475 million shy of the high end of its initial estimates. Unit sales and average selling prices continue to drop due to its price war with rival Intel (Nasdaq: INTC - News), which closed up 2.7%. AMD said it would impose a partial hiring freeze and curtail other spending in an effort to cut costs. The news drew mixed analyst reaction. JMP Securities, which overall sees an upside to AMD, maintained its "market outperform" rating, but cut its target from $17 to $16. Friedman Billings Ramsey, meanwhile, reiterated its "under perform" rating and cut its target from $10 to $9.
Mortgage investment trust American Home Mortgage Investment (NYSE: AHM - News) plunged -15.2% after the company sharply cut its Q1 earnings forecast. The firm focuses on the prime and near-prime sectors, not subprime, but it warned investors that problems in the secondary mortgage and mortgage-backed securities markets will result in reduced profits of 40 cents to 60 cents a share, sharply lower than its earlier forecast of $1.11 to $1.17 a share in earnings. The company also cut its dividend to 70 cents from $1.12.
In tech news, shares of Internet phone company Vonage Holdings (NYSE: VG - News) sank sharply after the company came up on the wrong end of another ruling in its patent dispute with Verizon Communications (NYSE: VZ - News). Last Friday, a federal judge ruled Vonage must stop adding new customers; the company immediately appealed and was granted a temporary stay. The company earlier was found to be in violation of several basic patents held by Verizon.
By the Bullmarket.com Staff
Labels: AA, AHM, AMD, BKR-B, BNI, CSX, INTC, NSC, UNP, VG, VZ
posted by Stock Administrator @ 8:36 PM
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