A strong day for stocks ended on a modestly weak note when Intel matched earnings expectations, but lowered its revenue outlook.
The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 3 to 215, and the Nasdaq climbed 38 to 2067. The S&P 500 added 11 to 1214, and the Dow surged 134 to 10,606. Volume rose to 1.23 billion shares on the NYSE, and 1.69 billion on the Nasdaq. Advancers led 18 to 12 on the NYSE, and 21 to 15 on the Nasdaq. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.
After the close, Intel slipped about 2% after matching estimates, but lowering revenue estimates. The company stuck to its contention that business will improve in the second half of the year. Apple Computer
lost about 10% after missing revenue estimates and lowering its forward outlook.
Also after the bell, Real Networks dropped 10% after missing estimates by a penny and announcing the resignation of its CFO for personal reasons; Paul Bialek will stay on as a part-time strategic advisor. Veritas
plunged on an earnings warning.
During the day, Novellus managed to add 1.64 to 48.01 after topping estimates by a penny at 40 cents a share, but issuing a disappointing forecast.
JDS Uniphase dropped .47 to 10.14 on talk that the company may take a write down of $40 billion – bigger than its $13 billion market cap – for acquisition-related charges.
IBM added .71 to 108.53 ahead of its earnings report tomorrow night. Investors expecting earnings of $1.15 a share, and revenues of about $23 billion.
Some technical comments on the market: Note: We include charts in the technical market commentary. If you can’t get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html
Some mixed signals in the market today. The Dow (first chart) had a strong day, but the buying pressure wasn’t confirmed by a sustained move in the TRIN below .80. However, the Dow could be forming an inverse head and shoulders bottom here (unlike at the top, however, where every major index formed a head and shoulders top, only the Dow is showing the bottoming pattern here). If the Dow can take out 10,650, it could be headed north of 11,000. The index is overbought, however, and due for a pullback in the next day or two. The 10,430-10,450 level must hold on any down move to keep that pattern in play. The Nasdaq (second chart) is an interesting study in gaps. Notice how the index bounced today at the mid-point of last week’s big gap up, a common support point in gaps. However, the partial fill of that gap increases the odds that it will fill completely in the days or weeks ahead; look at how a partial fill in June of an April gap was followed up by a complete fill last week. Last week’s gap up would fill at 1972. Also notice how the Nasdaq was rejected at a downtrend line today. A move above 2071 should take that line out. The S&P 500 (third chart) got rejected at a downtrend line at about 1215 today. 1200 is important support. Tomorrow and Thursday are the last days of an important turn window, but the odds of a crash-like event declined today. The next major turn window is August 5-9, and that one may be good until November.
Special report: For a free introduction to technical chart patterns and an overview of last year’s action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.
