Market briefing --- Matt (slow)
Nasdaq --- Julie (slow)
Bullish news --- Bob (fast)
>> as advertised, it’s the “world financial report.” i’m matt nesto. recapping the day that was on wall street. three green arrows, .4%, .3% and .5% for the benchmark equity indexes on lighter-than-average volume, the fourth weekly decline in a row for the s&p 500. the nasdaq rebounded today, ending the week lower. julie hyman wraps it up from the market site in times square.
>> the nasdaq rose about .6% today, 11 points. however, it was down 3% on the week. it’s an interesting phenomenon because the decliners on the week were gainers today and led the market higher. we’re talking about software and semiconductors, in particular. some of the big software names that declined this week as they said their numbers did not meet estimates or would not meet estimates, including siebel systems, rose today. veritas software another example of that. siebel also upgraded at bernstien research based on the valuation. those shares down 40% for the year to date but not based on any change in the analysts’ outlook for the industry or the company after the company missed its second-quarter sales estimates. so those software names coming back. looking at semiconductors, the philadelphia semiconductor index was one of the worst performers on the week but had a good gain today. some of the various gainers today included intel. there had been worries and talk from analysts that the company may not meet its estimates in the third quarter. also, some of the other gainers today, xilinx. also looking at novellus systems, semiconductor equipment maker. first albany capital analyst said today that when the company reports numbers next week, it will come in at the high end of its estimates for sales. that is encouraging for some folks and those shares rose today. also on the semiconductor front, looking at nvidia, one of the worst performers for the week. schwab soundview saying that the taiwanese partners of the company have released their june sales figures and they have come out weak. they say it will be difficult for nvidia to meet its july quarter guidance and nvidia declining today and for the week.
>> bullish news from the trucking industry today. some investors, its importance extended beyond trucking firms themselves. several of the industries that are seen as highly correlated to the overall economy have reported bullish news and bob bowden joins me now with the story, or could we say highly corrugated.
>> thank you for that, matt nesto. besides traditional economic data, there are certain industries investors look toward to get a sense of the health of the economy. exhibit a, yellow roadway, the biggest u.s. trucking company and yesterday after the closing bell, it raised its earnings forecast for the second time in as many months. back in april, yellow expected 70 to 75 cents a share for the second quarter. on june 14, it raised the earnings forecast to a range of 85 to 90 cents a share and on thursday it raised the forecast again, this time not quantifying, but saying earnings will exceed the upper end of the already increased forecast. jason saidel follows shares of the trucking industry for avondale partners.
>> i think it’s indicative of the economy itself. yellow roadway is very levered to the economic strength and right now the month of june that just ended to close out the quarter was strong for many of the carriers and i don’t think it was any different at yellow roadway.
>> checking yellow roadway shares on the day on friday’s session, up 1.1%. the next industry correlated to the industrial economy, truck manufacturing. daimlerchrysler saying this% morning it will add 2,000 jobs at its truck factories in north america. elkhart cortez, head of daimler’s commercial vehicle unit, says those job increases are required to meet rising demand. and exhibit c, evidence of a rebound in another industry seen as a predictor of economic activity, the production of corrugated activity. one analyst says corrugated production increased in april and may and box production is well above what anyone would call historical trend growth, quantified at 2.6%. despite the rapid production levels, look at where we are with inventories. another analyst of deutsche bank% saying box inventories are only 3.8 weeks’ of supply, according to the most recent data, this, the lowest coigated box inventory level in 10 years.
>> i think it’s a great coincident indicator for what’s going on the industrial side of the economy. typically, if a factory is producing something, it often winds up going in a box. so when factories produce more goods, companies are lined up selling more boxes.
>> checking friday action of so-called pure-play corrugated box makers, smurfit stone and packaging corporation of america america, smurfit up and package corporation of america down. with jeff immelt describing this as the best economy we’ve seen in years, there are other bullish indication coming from a trucker, a truck maker and a group of corrugated box makers.
>> i like that plain-spoken analyst. it’s pretty obvious.
>> factories make things.
>> they put them in boxes. appreciate it very much. also today, at&t says it will pay the u.s. government $490,000 to end investigations into alleged violations of so-called do-not-call rules. that’s 37% less than a proposed fine last year. in return, at&t agreed to drop a lawsuit in washington federal court in which it sought s.e.c. records related to the $780,000 penalty proposed by the agency. intel, i.b.m. and apple among the companies in the s&p 500 that are due to report earnings out next week. we’ll hear from an equity strategist about what investors% -are expecting in terms of tech profit growth.
