Market briefing --- Matt (slow)
Nasdaq --- Julie (slow)
Martha Stewart --- Allan (slow)
>> welcome back to “world financial report.” i’m matt nesto. let’s give you the day. there was on wall street three red air rose. dow, s&p, and nasdaq closing down on friday and for the week as well. checking on bonds, they were up and sharply if 10-year note having the biggest one-day gain in four months. the yield at 4.35%. a three-month low. shorter end of the curves similar moves. bonds higher, yields, of course, lower. and currency trading affect bid the same thing which is slower than expected inflation. we saw the dollar weaken here today. the dollar index at the lowest since late february. the euro, the yen, and the pound all gaining against the dollar. well, the f.d.a. is now saying it doesn’t expect a further recall of stents at boston scientific. that’s right. the food and drug administration says it believes the company has discovered all of the bad stents after an expanded voluntary recall of its drug-coated taxis devices because of possible defects in the delivery system. it also began a recall of its express two coronary stents. the recall will involve approximately 85,000 express two stents. the recall will effect financial results for the second quarter, about 200 stents were recalled earlier this month. the shares did not take the news well, down over 7.5%. rival johnson & johnson shares, though, got a lift up about 2.6% today. the nasdaq ended the week lower led by semiconductor stocks. julie hyman wraps it up from the market site in times square.
>> the nasdaq finished the day about 30 points lower. that took it to a more than 3% drop for the week. this is the third straight weekly decline for the index. and once again being led lower by the semiconductors. the philadelphia semiconductor index, in fact, dropped more than 8% this week and it’s been one of the worst performers for the week, the month, the year and really have been beat up so far this year and, again, thus far this week. today there were a couple of elements that pushed down the semiconductors. again, one of them is that motorola cut the price of the initial public offering of the semiconductor unit which sort of demonstrated the lack of demand for these sort of shares. that helped push them down. on the other hand, we had one of the companies coming out with results that did not match expectations. that was p.m.c. sierra. it did match expectations in terms of the second quarter net income after it posted income after a loss a year earlier. it is the third quarter sales forecast that came up short of what analysts had been looking for. on that, we saw a couple of the competitors fall as well. applied micro circuits and vitess semiconductor had big declines today. we had one positive semiconductor-related company and that’s rambus. both of these better than expected if company’s sales forecast for this quarter coming in ahead of what analysts were looking for. on the downside, however, not in semiconductors, netflix having a big drop today. almost 30% after the company’s second quarter profit fell 13%, more than analysts had estimated. this is because of higher marketing costs as well as subscription fulfillment costs. this disappointment even though sales were up 90%. and that’s a look at how we were trading today. back over to you.
>> in other news, j.p. morgan chase reports second quarter earnings next week. it’s the first results since the company acquired bank one earlier this month. a $58 billion deal. and investors will get a chance to hear from the company’s new president, jamie diamond. carol masser takes a look at diamond’s rise to the top and how the new job gives him a second chance at winning wall street glory.
>> we will be a winner this business --
>> jamie diamond is out to win, determined to make the new j.p. morgan chase number one. six years after being pushed out at citigroup by the company’s chairman and diamond’s former mentor, diamond is back in new york ready to challenge his former employer for banking supremacy.
>> we are at the point now where he has a chance to possibly even go to great irheights than sandy wile.
>> jamie and i would --
>> this time they are teaming up with william harrison to run nation’s second largest bank with $1.1 trillion in asset behind only citigroup. diamond will be c.e.o. when 60-year-old harrison steps down in 2006.
>> i really believe that 90% of the reason for that merger was to get jamie diamond to come and run the company. they probably couldn’t have gotten jamie to come any other way.
>> if you want to hear the rest of carol’s report, it will be on bloomberg tv tomorrow. also, you can pick up the august issue of bloomberg markets magazine. there it is. jamie dimon’s second chance. that is on newsstands now. archipelago says the i.p.o. price could be as low as $13.25 or as high as $15.25. that is wider than an initial filing that saw the i.p.o. price at $15 a share. it’s offering a 4.5 million shares and it sees proceeds of about 55 million. i will point out that bloomberg trade book a sister company of bloomberg news, competes with archipelago in matching and routing orders for stock trades. boeing will pay as much as $72.5 million to settle a sexual discrimination lawsuit brought by female employees. the work says they were denied pay raises and promotions. the u.s. district judge today gave preliminary approval to the settlement which had been announced in may before the cast went to trial. boeing will change its pay practices and pay the class members a minimum of $40.6 million with a maximum of $72.5 million. the final amount depends on how many women actually file claims. shares of yellow roadway reached an all-time high today. that and more coming up next.
