investors, Monday night was the best of times and the worst of times.
Shares of palmOne initially soared 15% after the close Monday when the company reported blow-out results, including beating per-share earnings estimates by more than 100%.
An hour later, the stock was tumbling after the company said on its conference call that it won’t meet earnings estimates for the November quarter. palmOne ended Tuesday down 15%, 25% below Monday’s after-hours high.
Shares of palmOne have soared 200% this year on red-hot smartphone sales, giving the stock plenty of room to fall on the first sign of weakness. The company said it expects to earn 50 cents a share in the November quarter, well below analysts’ 58-cent estimates. palmOne blamed weak PDA demand for the lowered forecast. The company also said Treo 600 inventories are at 10 weeks, but said demand is there to absorb that inventory.
The broader market rose on upbeat comments from the Federal Reserve, as traders shook off the Fed’s third straight interest rate increase and suggestions that more are on the way.
The Nasdaq gained 13 to 1921, the S&P 500 rose 7 to 1129, and the Dow climbed 40 to 10,244. Volume rose to 1.32 billion shares on the NYSE, but declined to 1.53 billion on the Nasdaq. Advancers led 23-9 on the NYSE, and 20-10 on the Nasdaq. Upside volume was 74% on the NYSE, and 71% on the Nasdaq. New highs-new lows were 196-16 on the NYSE, and 81-28 on the Nasdaq.
After the close, Jabil
During the day, Adobe
rose 5% after beating estimates and raising guidance.
fell 12% after missing revenue estimates.
and Silicon Storage
both gained 5% despite warning.
jumped 11% on prepaid VoIP plans.
surged 15% on an upgrade.
jumped 9% on a deal with Scientific Atlanta
, and Westell
gained 13% on a contract with Verizon