Bullmarket.com Market Wrap Feb. 6
Stocks traded flat for most of the session before closing with fractional gains. Hewlett-Packard (NYSE: HPQ - News) weighed on both the Dow Jones and Nasdaq indices today. Many technology stocks also treaded water ahead of an earnings report from Cisco Systems (Nasdaq: CSCO - News) and reduced guidance from chipmaker National Semiconductor (NYSE: NSM - News). The 10-year Treasury note moved higher, cutting the yield to 4.78%, while an earlier sharp rise in the price of crude was trimmed to a modest gain for the day.
After the market closed, Cisco reported that fiscal Q2 net income increased 40% on a 27% increase in sales. The maker of routers and other gear for the Internet reported earnings of $1.9 billion, or 31 cents a share, for the quarter ended January 27th, against earnings of $1.4 billion, or 22 cents per share, in the same period last year. Last night, National Semiconductor cut its fiscal Q3 revenue forecast to a decline of -14% to -15% sequentially. The company had previously forecast a revenue decline of between -8% to -11%.
Weakness in Hewlett-Packard was attributed to an announcement from Eastman Kodak (NYSE: EK - News) that it would introduce its first line of inkjet printers that will retail for somewhat higher prices than printers from other manufacturers, but Kodak will dramatically cut the prices it charges for replacement ink cartridges. Most printer makers have followed the "razor and blade" model whereby they sell the printers at a low price and make the majority of their profits on replacement ink. According to analysts, the Kodak model would sharply cut price-per-page costs if it catches on with consumers.
Oil producer BP (NYSE: BP - News) reported that Q4 adjusted net profit declined -22% to $2.9 billion, from $3.7 billion a year ago, hurt by declining oil and gas prices and reduced output. Its adjusted net profit measures earnings before extraordinary items and excludes changes in the value of inventories. Revenue rose nearly 12% to $274 billion from $245 billion. In addition to falling oil prices, BP also has had to ratchet up its capital spending to address safety and other operational problems following a spill at an Alaska oil pipeline and an explosion at a BP refinery in Texas that killed 15 people.
Online retailer Overstock.com (Nasdaq: OSTK - News) surged 22% even though the company missed its Q4 earnings target by a wide margin. The company reported a quarterly loss of -$1.92 per share compared with analyst estimates for a loss of -85 cents per share. The stock's rise was attributed to analysts concluding that Overstock was bottoming out operationally and had nowhere to go but up. First Albany raised its rating to "neutral" from "sell."
Household products maker Church & Dwight (NYSE: CHD - News) gained 4% to a 52-week high after reporting better-than-expected Q4 results. The company's Q4 net increased 47% to $24 million, or 36 cents per share, from $16 million, or 25 cents per share, a year earlier. Avon Products (NYSE: AVP - News) climbed 10% after the maker of personal care products reported profits that beat Wall Street estimates. Finally, shares of Tyco (NYSE: TYC - News) slipped in spite of a 43% rise in fiscal Q1 profit. Subscribers can read our analysis of Tyco's results in today's issue.
By Bullmarket.com Staff
After the market closed, Cisco reported that fiscal Q2 net income increased 40% on a 27% increase in sales. The maker of routers and other gear for the Internet reported earnings of $1.9 billion, or 31 cents a share, for the quarter ended January 27th, against earnings of $1.4 billion, or 22 cents per share, in the same period last year. Last night, National Semiconductor cut its fiscal Q3 revenue forecast to a decline of -14% to -15% sequentially. The company had previously forecast a revenue decline of between -8% to -11%.
Weakness in Hewlett-Packard was attributed to an announcement from Eastman Kodak (NYSE: EK - News) that it would introduce its first line of inkjet printers that will retail for somewhat higher prices than printers from other manufacturers, but Kodak will dramatically cut the prices it charges for replacement ink cartridges. Most printer makers have followed the "razor and blade" model whereby they sell the printers at a low price and make the majority of their profits on replacement ink. According to analysts, the Kodak model would sharply cut price-per-page costs if it catches on with consumers.
Oil producer BP (NYSE: BP - News) reported that Q4 adjusted net profit declined -22% to $2.9 billion, from $3.7 billion a year ago, hurt by declining oil and gas prices and reduced output. Its adjusted net profit measures earnings before extraordinary items and excludes changes in the value of inventories. Revenue rose nearly 12% to $274 billion from $245 billion. In addition to falling oil prices, BP also has had to ratchet up its capital spending to address safety and other operational problems following a spill at an Alaska oil pipeline and an explosion at a BP refinery in Texas that killed 15 people.
Online retailer Overstock.com (Nasdaq: OSTK - News) surged 22% even though the company missed its Q4 earnings target by a wide margin. The company reported a quarterly loss of -$1.92 per share compared with analyst estimates for a loss of -85 cents per share. The stock's rise was attributed to analysts concluding that Overstock was bottoming out operationally and had nowhere to go but up. First Albany raised its rating to "neutral" from "sell."
Household products maker Church & Dwight (NYSE: CHD - News) gained 4% to a 52-week high after reporting better-than-expected Q4 results. The company's Q4 net increased 47% to $24 million, or 36 cents per share, from $16 million, or 25 cents per share, a year earlier. Avon Products (NYSE: AVP - News) climbed 10% after the maker of personal care products reported profits that beat Wall Street estimates. Finally, shares of Tyco (NYSE: TYC - News) slipped in spite of a 43% rise in fiscal Q1 profit. Subscribers can read our analysis of Tyco's results in today's issue.
By Bullmarket.com Staff
posted by Stock Administrator @ 7:31 AM
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