Nasdaq, Dow extend gains
Earnings parade continues
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 10:34 AM ET Jul 13, 2000 NewsWatch
NEW YORK (CBS.MW) - Bolstered by a slew of positive earnings reports, the broad market climbed Thursday, led by technology issues. The chip and Internet stocks again pushed the Nasdaq to higher ground.
The Dow Jones Industrial Average edged up 8 points, or 0.1 percent, to 10,791 at 10:32 a.m.
The Nasdaq Composite climbed 42 points, or 1.0 percent, to 4,141 while the Nasdaq 100 Index gained 32 points, or 0.8 percent, to 3,933.
The Standard & Poor's 500 Index rose 0.2 percent while the Russell 2000 Index of small-capitalization stocks added 0.3 percent.
Volume checked in at 93.9 million on the NYSE and at 199 million on the Nasdaq Stock Market. Winners matched losers on the NYSE while advancers beat decliners by 16 to 12 on the Nasdaq.
Shares of Ariba jumped 19 1/2, or about 19 percent, to 123. The company (ARBA: news, msgs) reported after the close Wednesday a third-quarter loss of 5 cents a share, less than the First Call estimate of a loss of 8 cents a share. The company lost 11 cents in the year-ago period. See related story.
Financial shares backpedaled following Wednesday’s powerful rally. Dow-component J.P. Morgan (JPM: news, msgs) registered a second-quarter profit of $2.90 a share, crushing the First Call estimate of $2.45 a share. The financial institution made $2.52 in the year-ago period. See full story. The stock rose 3 1/2 to 126 1/16.
Many brokerages stocks that saw healthy gains on Wednesday fell into negative territory, losing 7/16 to 131 1/8. The Amex Securities Broker/Dealer Index ($XBD: news, msgs) trimmed 0.6 percent after surging 7.4 percent on Wednesday while the Phlx/KBW Bank Index ($BKX: news, msgs) lost 0.7 percent.
In other earnings news, Fannie Mae (FNM: news, msgs) checked in with a second-quarter profit of $1.05 per share, matching the First Call estimate. The company made 91 cents in the year-ago period. Shares fell 3 7/8, or about 7 percent, to 53 3/16.
The fourth Dow component to report earnings this week was General Electric (GE: news, msgs), which earned 34 cents in the second quarter, a penny ahead of the First Call estimate. The company made 28 cents in the year-ago period. Shares slipped 5/16 to 53 7/16.
In the chip arena, Motorola (MOT: news, msgs) posted after the close Wednesday second-quarter earnings of 23 cents a share, matching the First Call consensus estimate. The company had posted earnings of 13 cents in the year-ago period. See full story. The stock rose 2 to 38 1/4.
A number of chip companies will report earnings after the close Thursday: PMC-Sierra (PMCS: news, msgs), which is expected to make 19 cents a share, per First Call, Altera (ALTR: news, msgs), expected to have earned 44 cents a share in the second quarter, and Vitesse Semiconductor (VTSS: news, msgs), seen earning 17 cents in the third quarter.
PMC-Sierra rose 11 15/16 to 220, Altera added 3 1/8 to 106 3/8 and Vitesse added 5 5/16 to 85 1/4.
Applied Micro Circuits tacked on 23 9/16 to 149. The company (AMCC: news, msgs) registered after the close Wednesday first-quarter earnings of 21 cents a share, beating the First Call estimate of 17 cents per share. The firm made 6 cents in the year-ago period.
In other earnings news Thursday, Dow Jones (DJ: news, msgs) registered a second-quarter profit form operations of $1.06 a share, beating the First Call estimate of 97 cents a share. The company made 64 cents in the year-ago period. The stock added 1 1/2 to 74 5/16.
Maytag (MYG: news, msgs) came in with second-quarter earnings of 92 cents a share, a penny ahead of the First Call estimate. The company made 97 cents in the year ago period. The stock trimmed 1 1/4 to 38 1/16.
In other news, Sprint (FON: news, msgs) and WorldCom (WCOM: news, msgs) officially agreed to call off their merger agreement in the wake of efforts by U.S. and European regulators to block the $125 billion union. Read the story. Sprint added 1 1/2 to 48 1/2 while WorldCom climbed 1 1/4 to 45 3/4.
Government prices climbed, led by long-dated issues. The 10-year Treasury note added 9/32 to yield 6.04 percent while the 30-year bond put on 19/32 to yield 5.84 percent. See Bond Report.
Alan Greenspan spoke late Wednesday before the Council on Foreign Relations in New York. Making no reference to monetary policy, the Fed Chair said flexible and transparent capital markets are the best way to fend off financial crisis. Read the full story.
On the economic front, weekly initial claims rose 27,000 to 319,000. In other news, the June import price index climbed 0.8 percent. View Economic Preview, economic calendar and forecasts and historical economic data.
In the currency arena, the greenback backpedaled following impressive gains on Wednesday. Dollar/yen erased 0.6 percent to 107.46 while euro/dollar continued it descent, shedding 0.6 percent to 0.9361. See latest currency rates.
In the commodity market, August crude added 18 cents to $30.50 while the Bridge CRB index tacked on 0.91 to 220.73.
Julie Rannazzisi is markets editor for CBS.MarketWatch.com.