Stock Market Wrapup Aug. 7th
Equities went on another thrill ride today, as stocks advanced triple digits then sold off from their highs. At the close, all three major averages closed modestly higher on the day. Bulls once again kept bears at bay and managed to keep buying interest relatively high.
Economic news came out in force today, highlighted by the Federal Reserve's decision to keep interest rates steady at 5.25%. The FOMC declared that risks to growth have increased. It also acknowledged once again that the risk that inflation will fail to moderate is the "predominant policy concern." The policy agency also declared that it sees moderate growth in coming months despite volatile financial markets. Also on the day, the Labor department reported that U.S. worker productivity gained less than forecast in the second quarter. Productivity, a key gauge of employee efficiency, advanced at an annual rate of 1.8% after a revised 0.7% gain in the previous quarter. Wages and benefits increased at a 2.1% pace.
Recently spun-off Tyco International (NYSE: TYC - News) reported a loss as it recorded a hefty charge to settle a lawsuit. For the quarter ended June 29th, it posted a loss of -$3.55 billion, or -$7.58 a share, compared with a year-ago profit of $868 million, or $1.68 a share. Excluding charges, earnings from continuing operations rose to $277 million, or 55 cents a share, from $252 million, or 49 cents a share, in the year-ago period. Analysts were looking for earnings of 48 cents a share. Revenues hit $5.09 billion from $4.72 billion last year. The company cited strength in its flow control division, which helped boost earnings. Shares fell -0.6% on the news. Subscribers can read our analysis of Tyco International in today's issue.
Casino operator Wynn Resorts (Nasdaq: WYNN - News) said its profit hit $89.6 million, or 82 cents a share, from a year-ago loss of -$20.1 million, or -20 cents a share. On an adjusted basis, the company reported earnings of $100.8 million, or 92 cents a share. Net revenues soared to $687.5 million from $273.4 million a year ago. The results easily topped analyst EPS estimates of 53 cents. The rise in earnings and sales were primarily due to the success of Wynn Macau and Wynn Las Vegas. Shares surged 11.9%.
After the bell tonight, technology bellwether Cisco Systems (Nasdaq: CSCO - News) reported fourth-quarter earnings of $1.93 billion, or 31 cents per share, compared with $1.54 billion, or 25 cents per share, a year ago. Net sales for the period totaled $9.4 billion, an 18% increase year over year. Excluding one-time items, Cisco reported EPS of 36 cents, a penny ahead of estimates. Shares finished the regular trading session up 0.6%
In mortgage-related news, shares of Luminent Mortgage Capital (NYSE: LUM - News) plunged -75.2% after the home loan investment company warned that it has been hit by margin calls. The company said that it has suspended the payment of its second-quarter dividend. Its board of directors has also announced plans that it is considering a full range of strategic alternatives to improve its liquidity and to preserve shareholder value. It said that secondary mortgage loans have "seized up."
By the BullMarket.com Staff
Economic news came out in force today, highlighted by the Federal Reserve's decision to keep interest rates steady at 5.25%. The FOMC declared that risks to growth have increased. It also acknowledged once again that the risk that inflation will fail to moderate is the "predominant policy concern." The policy agency also declared that it sees moderate growth in coming months despite volatile financial markets. Also on the day, the Labor department reported that U.S. worker productivity gained less than forecast in the second quarter. Productivity, a key gauge of employee efficiency, advanced at an annual rate of 1.8% after a revised 0.7% gain in the previous quarter. Wages and benefits increased at a 2.1% pace.
Recently spun-off Tyco International (NYSE: TYC - News) reported a loss as it recorded a hefty charge to settle a lawsuit. For the quarter ended June 29th, it posted a loss of -$3.55 billion, or -$7.58 a share, compared with a year-ago profit of $868 million, or $1.68 a share. Excluding charges, earnings from continuing operations rose to $277 million, or 55 cents a share, from $252 million, or 49 cents a share, in the year-ago period. Analysts were looking for earnings of 48 cents a share. Revenues hit $5.09 billion from $4.72 billion last year. The company cited strength in its flow control division, which helped boost earnings. Shares fell -0.6% on the news. Subscribers can read our analysis of Tyco International in today's issue.
Casino operator Wynn Resorts (Nasdaq: WYNN - News) said its profit hit $89.6 million, or 82 cents a share, from a year-ago loss of -$20.1 million, or -20 cents a share. On an adjusted basis, the company reported earnings of $100.8 million, or 92 cents a share. Net revenues soared to $687.5 million from $273.4 million a year ago. The results easily topped analyst EPS estimates of 53 cents. The rise in earnings and sales were primarily due to the success of Wynn Macau and Wynn Las Vegas. Shares surged 11.9%.
After the bell tonight, technology bellwether Cisco Systems (Nasdaq: CSCO - News) reported fourth-quarter earnings of $1.93 billion, or 31 cents per share, compared with $1.54 billion, or 25 cents per share, a year ago. Net sales for the period totaled $9.4 billion, an 18% increase year over year. Excluding one-time items, Cisco reported EPS of 36 cents, a penny ahead of estimates. Shares finished the regular trading session up 0.6%
In mortgage-related news, shares of Luminent Mortgage Capital (NYSE: LUM - News) plunged -75.2% after the home loan investment company warned that it has been hit by margin calls. The company said that it has suspended the payment of its second-quarter dividend. Its board of directors has also announced plans that it is considering a full range of strategic alternatives to improve its liquidity and to preserve shareholder value. It said that secondary mortgage loans have "seized up."
By the BullMarket.com Staff
Labels: CSCO, LUM, TYC, WYNN, Wynn Resorts Ltd.
posted by Stock Administrator @ 11:22 PM
0 Comments:
Post a Comment
<< Home