Baidu.com gained nearly 6% on its earnings report Wednesday, but Sprint Nextel’s
first post-merger report was a bit of a bummer.
Baidu’s earnings of 13 cents a share were nearly double what analysts were looking for, and sales surged nearly 170% to $14.2 million, also well ahead of forecasts.
Sprint shares, meanwhile, slumped 4.5% after fourth-quarter earnings came in slightly below estimates and the company warned that 2006 sales will come in well below estimates. Sprint forecast $41 billion in revenues for the year, below $46.8 billion forecasts. The company plans to cut 2,500 jobs, or 4% of its workforce.
The broader market surged despite a bigger than expected jump in inflation last month, as traders focused instead on the tamer “core” inflation rate, which excludes food and energy prices.
The Nasdaq rose 20 to 2283, the S&P 500 gained 9 to 1292, and the Dow climbed 68 to 11,137. Volume rose to 2.22 billion shares on the NYSE, and 1.89 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 18-11 on the Nasdaq. Upside volume was 66% on the NYSE, and 63% on the Nasdaq. New highs-new lows were 272-13 on the NYSE, and 151-26 on the Nasdaq.
VA Software soared 17% on its results.
Intel lost 2% on a Think Equity Partners downgrade.
InPhonic fell 23% on its results.
