PARIS: The European Union said Friday that it had reached a preliminary agreement with U.S. negotiators to all but eliminate restrictions on trans-Atlantic air routes, marking a significant breakthrough in talks aimed at increasing the number of flights Д and lowering fares. The EUs transport commissioner, Jacques Barrot, said the European Commission had made “decisive progress” in talks with U.S. representatives in Brussels this week toward concluding a hard-fought “open-skies”...
Stocks Down, But Paring Losses
May 16, 2008 on 3:25 pm | In Finance |
The major stock indexes lingered in the red Friday, but they have come off session lows.
At 10:50 a.m. ET, the Nasdaq tumbled 2.1%. It was down 2.5% earlier. The NYSE composite lost 1.3%. Meanwhile, the Dow and S&P 500 gave up 1.2% each.
Volume was tracking slightly lower on both exchanges.
In economic news, the University of Michigan sentiment index dropped to 75 vs. 80.9 in October, the lowest since Oct. 2005.
Comtech Group () gapped below its 50-day moving average, dropping 3.49, or 17% to 17.35. The Chinese mobile handset maker got hit despite reporting better-than-expected earnings late Thursday.
JA Solar Holdings () gave up 7.36 to 62.20 in brisk trading. The solar cells maker is also down, despite stellar third-quarter earnings and sales. It also raised its full-year sales outlook.
On the upside, Merck () gapped up, gaining 1.85 to 56.62. The drug maker said it settled the bulk of its Vioxx lawsuits for $4.85 billion.
Manitowoc () jumped 1.06 to 42.96, nearing its 50-day line. Shares of the crane maker got a lift on news that it’ll be added to the S&P 500 index after the close Nov. 15.
Atheros Communications () bucked the tech sell-off. Share rose 0.76 to 32.60. The chipmaker rebounded after finding support at its 50-day moving average.
10:15 a.m. ET Update: Stocks Stumble At Open; Techs Hit Again
By Vincent Mao
Stocks were down big in early Friday trading.
At 10:01 a.m. ET, the Nasdaq dived 2.1%, taking out Thursday’s low. The NYSE composite dropped 1.6%, the S&P 500 1.4% and Dow 1.3%.
Tech and Internet leaders continued to bleed.
Research In Motion () gapped down 6.74, or 5%, to 117.74.
Google () fell hard for a third straight session. Shares gapped down, tumbling 28.31 to 665.81.
VMware () gapped down and dropped 6.88 to 85, sinking further below its 50-day moving average.
Meanwhile, Geo Group () gapped down, falling 4.07, or 14%, to 28.08 in huge trading. The prison operator reported Q3 earnings and sales ahead of views and it announced new contracts. But the company’s Q4 guidance disappointed.
On the upside, Dolby Laboratories () gapped up and rallied 4.30 to a new high of 43.72. Late Thursday, the audio technology firm smashed views with a 77% jump in fiscal Q4 earnings. It also guided full-year 2008 profit and sales ahead of analysts’ estimates.
9:15 a.m. ET Update: Stocks Set For Early Slide
By Vincent Mao
Stock futures pointed to a sharply lower open Friday amid continued credit woes. Nasdaq futures dropped 39 points vs. fair value, S&P 500 futures lost 18 points and Dow futures gave up 24 points. And that’s off their lows.
In economic news, the trade balance for September narrowed to -$56.3 billion, the lowest in over 2 years. Economists expected -$58.5 billion.
The preliminary read on the Michigan sentiment index for will be out at 10 a.m. ET. A dip to 80 is expected.
The dollar hit a new record low against the euro and was weaker against the yen.
Wachovia () is down about 3% in pre-open trading. The bank said in an SEC filing that its portfolio of collateralized debt obligations fell by $1.1 billion in October. And due to continued weakness in the credit markets, it plans to boost its provision for loan losses to between $500 and $600 million.
Merrill Lynch (), Citigroup () and Morgan Stanley () all have announced write-downs recently.
Gmarket () tumbled 11% in the premarket. Late Thursday, the South Korean ecommerce firm reported Q3 profit of 13 cents a share, up 8% from a year ago, missing views. Sales, which were affected by a holiday, also came in shy.
Qualcomm () lost 7% in pre-open trading. After Thursday’s close, the wireless communications firm delivered fiscal Q4 earnings and sales ahead of expectations. But it guided full-year 2008 profit from $2.03 to $2.09 a share, below views of $2.18. That’s partly due to a patent dispute with Nokia (), which is affecting royalties.
Priceline.com () jumped 15% in pre-market trading. Late Thursday, the online travel firm trounced views with a 119% surge in third-quarter profit. Sales grew 33%, the best in many periods.
Perini () rallied 8%. Late Thursday, the construction services firm reported a 142% surge in Q3 earnings and a 61% rise in sales. It also guided raised its full-year earnings outlook to $3.30 to $3.45 a share vs. views of $3.10. Sales are pegged from $4.4 billion to $4.6 billion, also above views.
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