HP, NetApp Beat The Street

HP and Network Appliance gave investors some good news after the close on Tuesday.

Shares of HPQ surged more than 7% in after-hours trading after the company posted a strong rebound from an earnings warning in August.

HP’s fourth-quarter pro-forma earnings of 41 cents beat estimates by four cents, and revenues of $21.39 billion topped $21.15 billion forecasts. HP also raised guidance for the first half of fiscal 2005 to earnings of 72-74 cents a share on sales of $41.8-$42.3 billion.

HP’s quarter was driven by a 22% sequential jump in server and storage sales to $4.1 billion.

Also after the close, NetApp surged 8% after the company beat estimates with 16-cent earnings and $375.2 million revenues. The company also raised guidance.

Stocks fell during the day on a much stronger than expected wholesale inflation reading and a revenue miss by Wal-Mart .

The Nasdaq fell 15 to 2078, the S&P 500 lost 8 to 1175, and the Dow fell 62 to 10,487. Volume declined to 1.36 billion shares on the NYSE, but rose to 1.91 billion on the Nasdaq. Decliners led 20-12 on the NYSE, and 19-11 on the Nasdaq. Downside volume was 73% on the NYSE, and 58% on the Nasdaq. New highs-new lows were 225-10 on the NYSE, and 146-23 on the Nasdaq.

Rambus surged 14% on a favorable patent ruling.

PeopleSoft rose 1% after the company’s top two shareholders were split on whether they will tender their shares by the Friday deadline set by Oracle for its $24 a share offer.

InPhonic and China Netcom had strong IPO debuts.

Google fell 7% on the day that 39 million shares came out of lockup and are now eligible for sale.

EDS rose 3% after the company finally released earnings, beating estimates.

ScanSoft tumbled 16% on its results.

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