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...
Stocks Mixed In Early Trade
May 16, 2008 on 3:25 pm | In Finance |
Weakness in tech issues spilled over into the broader markets in early trade Friday, leaving stocks mixed.
At 9:59 a.m. EDT, the Nasdaq was down 0.8% and the Dow lost a fraction. A 6% slump in Microsoft () weighed on both indexes. The NYSE composite rose 0.4% and the S&P 500 0.1%.
Volume was tracking a tad higher on both exchanges.
Deckers Outdoors () gapped up and surged 18.65 to 136.10. Late Thursday, the footwear maker said Q1 profit rose 18% to 86 cents a share, a dime above views. Sales climbed 34% to $97.5 million, also above views. Results were boosted by solid demand for its Ugg and Simple brands. The company raised its full-year outlook for profit and revenue growth of 27% and 31%, respectively, from 20% and 25%.
Potash Corp. of Saskatchewan () rose 2.21 to 196.11 in fast trade. Credit Suisse raised the Canadian fertilizer maker’s price target to 210 from 157. Potash slumped 10% Thursday despite reporting strong earnings and raising its full-year outlook.
Visa () gapped up and gained 3.09 to a new high of 75.35. The credit card issuer reports fiscal Q2 earnings Monday. Analysts see profit rising 92% to 46 cents a share. Visa came public in March at 44.
On the downside, NBTY Inc. () gapped down below its 200-day and 50-day moving averages. Shares plunged 7.31, or 21%, to 26.93 in busy trading. After Thursday’s close, the nutritional supplements maker said fiscal Q2 earnings fell 19% to 67 cents a share, hurt by higher costs. That was also 8 cents below views.
Western Digital () gapped down and sliced its 50-day moving average, shedding 2.73 to 28.52 in heavy trading. Late Thursday, the hard drive maker delivered a 132% surge in fiscal Q3 earnings and a 50% gain its sales. But it guided fiscal Q4 profit below views.
9:15 a.m Update: Stocks Set For Split Open
By VINCENT MAO
Stock futures pointed to a mixed open Friday following another round of earnings reports. Nasdaq futures eased a fraction of a point vs. fair value, S&P 500 futures climbed 4 points and Dow futures rose 58 points.
Crude oil bounced back from Thursday’s 2% loss after militants attacked another oil pipeline in Nigeria. The June contract rose 94 cents to $117 a barrel.
The sole piece of economic data is the revised University of Michigan sentiment index due out at 10 a.m. EDT.
Baidu.com () rallied 6% in the pre-market on strong sales and a bright outlook. Late Thursday, the Chinese Internet search firm delivered Q1 earnings of 67 cents a share, excluding items, up from 32 cents a year before and in line with views. Sales more than doubled to $81.9 million, above views. It also guided Q2 sales ahead of analysts’ estimates.
Citigroup upgraded Baidu.com shares to buy from hold and raised its price target to 415 from 350. Baidu is forging a new base and might be adding a handle.
American Express () climbed 4% in the pre-open despite a dip in its latest quarterly earnings. After Thursday’s close, the Dow component reported Q1 profit of 81 cents a share, down 5% from a year ago but in line with views. The credit card firm’s bottom line was hurt as more cardholders missed payments amid rising prices and tough economic conditions. Provisions for loan losses rose 52% to $881 million.
Group mate and recent IPO Visa () rallied 5% in the pre-market.
Fellow Dow member Microsoft () fell 4% in the pre-market on lower-than-expected sales. Late Thursday, the software giant reported fiscal Q3 profit of 47 cents a share, down 4% from a year earlier but 3 cents above views. Sales were mostly flat at $14.45 billion vs. views for $14.5 billion. The company guided current quarter results in line with estimates.
CF Industries () also lost 4% in the pre-open after it missed views. After Thursday’s closing bell, the fertilizer maker delivered first-quarter earnings of $1.99 a share, excluding items. That was
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