Investor's Business Daily, April 26th, 2007
Strong profit reports from Apple AAPL and other leading stocks didn't give the market a big boost Thursday.
According to preliminary data, the Nasdaq led with a 0.3% gain, while the Dow climbed 0.1% to a new record high. The S&P 500 gave up 0.1%, the NYSE composite 0.3%.
Volume trends weren't encouraging. NYSE trade was just 1% higher; Nasdaq turnover slid 9%.
Parexel International PRXL leapt 2.05 to an eight-year high of 40.98 on six times normal trade. The provider of clinical research and other services said late Wednesday it earned 35 cents a share in the fiscal third quarter. That's up 40% from last year and in line with views.
America Movil AMX gapped up and rose 2.05 to a new high of 54.20 on twice typical turnover. Late Wednesday, the No. 1 Latin American wireless firm reported a first-quarter profit that rose 59% to 81 cents a share and topped views by 14 cents. It now wants to offer cable services in Central America.
NII Holdings NIHD advanced 2.77 to 81.07, an all-time high, on double average volume. The Reston, Va.-based firm, which also provides telecom services to Latin America, earned 47 cents a share in the first quarter. That's a 24% increase from a year ago but 2 cents below forecasts. Sales, however, beat views.
Zimmer Holdings ZMH gapped up and rose as much as 6% in early trade. But it pared some of its gains to close up 3.10, or 3%, at 91.87. The stock has found support above its 50-day moving average since late July 2006. The orthopedic implants maker earned 98 cents a share in the first quarter, up 20% from last year and a nickel above views.
On the downside, Vignette VIGN sank 2.81 to 18.35 on huge trade, closing below its 50-day line for the first time since mid-March. The Internet software maker doubled its first-quarter profit to 24 cents a share ex-items, trumping estimates. But it missed sales views, and forecast lower second-quarter revenue as well.
3 p.m. ET update: Indexes Hit Session Highs In Late Trading
The main indexes snapped from a tight intraday range, moving into session highs in late trading.
At 3 p.m. ET, the Nasdaq led with a 0.4%. The Dow and NYSE composite rose 0.2%. The S&P 500 edged up 0.1%.
Volume remained mixed, though. NYSE volume was running 6% higher while Nasdaq trading was 9% lower. Ideally, you'd like to see the Nasdaq's leading gains be the one with the higher volume, rather than the other way around.
Technology stocks such as computer makers, Internet networkers and consumer electronics manufacturers led the market higher and helped the tech-heavy Nasdaq. Strong earnings drove some high-rated stocks to significant advances.
Rock-Tenn RKT broke out of an eight-week pattern as it soared 5.76, or 16%, to 41.60 on about three times its usual volume. Late Wednesday, the maker of the paperboard packaging reported quarterly earnings that beat Wall Street expectations. Rock-Tenn said it overcame higher costs by raising prices.
Amazon.com AMZN added 2.50 to 59.31 on heavy trading. The online retailer surged 27% Wednesday after reporting strong quarterly results.
Partner Communications PTNR made a 52-week high, gaining 0.60 to 16.97 on above-average trading. Shares are 11% extended from a 15.23 buy point in a breakout from a six-week cup base.
Corrections Corp. of America CXW also was at a 52-week high. The operator of prisons rose 2.06 to 57.51. The stock broke out on light volume April 13, but trading has picked up recently.
On the downside, Groupe Danone DA tumbled 2.72, or 8%, to 32.74 after the French dairy products company said it will no longer trade its ADRs on the NYSE.
Brush Engineered Materials BW sank 10.21, or 17%, to 51.53, sliding to its 50-day moving average before regaining a bit of its loss. The company -- which makes some of the specialty metals and pieces used in making next-generation PC hard drives -- missed earnings estimates and forecast second-quarter profit below the Street's consensus.
1 p.m. ET update: Indexes Stay In Narrow Range
The main stock indexes remained narrowly mixed in midday trading, despite positive earnings reports and strong upside action by some leaders.
As of 1 p.m. ET, the Nasdaq was up 0.2% and the Dow 0.1%. The S&P 500 was down less than 0.1%. But the NYSE composite was 0.3% lower. NYSE volume was tracking 6% higher, while Nasdaq turnover was running 10% lighter.
Cohen & Steers CNS gapped up and rallied 9.15 to a new high of 54.11, clearing a 12-week base on huge trade. Late Wednesday, the investment manager said it earned 52 cents a share in the first quarter, up 136% from last year and 13 cents above views. Revenue surged 103% to $76.8 million.
ITT Educational Services ESI gapped up and rose 10.01 to an all-time high of 93.38 on heavy turnover. The for-profit educator earned 66 cents a share in the first quarter, up 50% from a year ago and 11 cents above views. That was its highest profit growth rate in 10 quarters.
Stratasys SSYS gapped up and surged 5.71, or 13%, to a record high of 48.33 on five times usual volume. The maker of 3D prototyping systems reported first-quarter earnings of 32 cents a share, up 39% from the prior year and a nickel above Wall Street forecasts.
On the downside, Cabot CBT gapped down, sinking 4.94 to 44.83 on six times normal trade, falling well below its 50-day moving average. The specialty chemicals maker reported a first-quarter profit that missed estimates by 10 cents a share.
11 a.m. ET update: Stocks Mixed In Early Trade
The major indexes were narrowly mixed early Thursday, flipping from positive to negative territory and back after another round of earnings reports rolled in.
At 10:40 a.m. ET, the Nasdaq added 0.1%, the Dow rose less than 0.1%. Meanwhile, the S&P 500 slipped 0.1%. Nasdaq volume was tracking 8% lower and NYSE volume was tracking 17% higher.
Apple AAPL gapped up and bolted 3.74, or 6%, to an all-time high of 99.09 on brisk turnover. The stock's breakaway gap left it 2% above a buy point of 96.93. Late Wednesday, the iPod maker delivered an 85% jump in fiscal Q2 profit, beating views. Sales climbed 21% to $5.26 billion. The company guided third-quarter earnings and sales below analysts' estimates. Citigroup cut Apple to hold from buy, a move which had little effect on the stock.
Covansys CVNS gapped up and flew 6.31, or 24%, to 33.31 on news that Computer Sciences CSC will buy the technology services firm for nearly $1.3 billion, or $34 a share.
Vasco Data Security International VDSI gapped up and vaulted 3.15, or 18%, to a record high of 20.81. Before the open, the maker of hardware and software security systems said first-quarter earnings leapt 333% to 13 cents a share, 2 cents ahead of views. Sales rose 93% to $26.4 million. The stock had pulled back to its 50-day moving average on light volume in the past few sessions.
On the downside, Akamai Technologies AKAM tumbled 2.33 to 46.65 on huge trade, slicing its 200-day moving average. The stock had been above its 200-day line since late May. On Wednesday, the provider of Internet content delivery services reported a 65% increase in first-quarter profit, in line with views. It reiterated its full-year earnings outlook of $1.26 to $1.30 a share, on sales of $610 million to $625 million. Analysts expected earnings of $1.28 and sales of $624.9 million.
Skechers USA SKX gapped below its 50-day line, stepping down 2.60 to 33.15. Late Wednesday, the shoemaker delivered a 52% rise in first-quarter profit, but missed views by a penny. The company also guided Q2 earnings and sales below consensus estimates.
