RealTime IT News

Motorola Crushes Estimates

Motorola delivered some hope for a market battered by interest rate fears when it reported blowout results after the close on Tuesday.

Motorola's earnings of 18 cents a share crushed 7-cent estimates, and revenues of $8.6 billion came in way ahead of $6.75 million estimates. Motorola also hiked forward guidance well above estimates. The stock soared 20% after hours.

Also after the close, AskJeeves beat estimates but warned, WebEx , Internet Security and StorageTek missed estimates, Sanmina met estimates, and CheckFree , Cymer and Applied Micro beat estimates.

Stocks plunged during the day after comments by Fed Chairman Alan Greenspan that banks are well positioned for higher interest rates were taken as a sign that the Fed may raise interest rates. Greenspan also said that deflation is no longer concern, signaling a likely policy shift by the Fed toward inflation.

The Nasdaq plunged 41 to 1978, the S&P 500 dropped 17 to 1118, and the Dow fell 123 to 10,314. Volume rose to 1.51 billion shares on the NYSE, and 1.93 billion on the Nasdaq. Decliners led 25-7 on the NYSE, and 22-9 on the Nasdaq. Downside volume was 80% on the NYSE, and 82% on the Nasdaq. New highs-new lows were 104-70 on the NYSE, and 120-34 on the Nasdaq.

Lucent tumbled 10% despite beating estimates.

Netopia plunged 37% after missing estimates.

j2 Global surged 14% after beating estimates.

JDA Software and Ameritrade fell on their results, while Check Point EarthLink and SupportSoft rose after beating estimates.

Cray gained 10% on an Army supercomputer deal.

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