Market briefing --- Matt (slow)
Forecast for second-quarter earnings --- Bob (fast)
NYSE --- Deb (fast)
welcome to “world financial report.” i am matt nesto. let’s give you the closing numbers here today, notable for a number of reasons, stocks finishing not only at a six-week high but 1.5% higher for the dow, s&p a little better than that. the nasdaq 2.1% higher. the nasdaq is up year to date .8%, haven’t been able to say that since april 28. looking at volume here today -- and the broadest of them all, the the 5,000 shares in the wilshire 5000, up 1.6%. bonds little changed, yields pulling back from two-year highs. currency showing weakness across the board, with the rebound and the dollar buying a bit more yen. texas instruments’ shares trading lower in extended hours after the company raised the high end of its forecast for second-quarter earnings. bob bowden has been tracking the potassium iodide headlines and joins us now with the breakdown. break it down.
>> i’ll do my best. texas instruments releasing the mid quarter update like intel last week, rais the mid point of its second-quarter profit forecast. starting with earnings, t.i.’s now sees second-quarter earnings per share between 24 and 26 cents a share compared to the previous forecast of 23 to 26 cents so the high end was maintained on earnings but the midpoint raised because they raised the bottom end by a penny a share. t.i. forecasting second-quarter revenue in a range between 3.17 and 3.29 billion. the previous forecast was lower on the low end and higher on the high end, 3.09 to 3.33. i thought i would break apart the mid points for you, the new mid points of the narrower revenue forecast is $20 million higher than the previous midpoint of the wider range, 3.21. but the increase of the midpoint is just $20 million, or .6% of an increase the midpoint of the revenue range, if that makes sense. in other words, an insignificant increase when you’re talking .6%. moving on to specific groups within the company, texas instruments did offer details on specific divisions, forecasting revenue from semiconductor operations specifically in a range between 2.73 and 2.83. the previous forecast for the unit was 2.65 to 2.85. the bottom end of the range increased much more than the high end was decreased. so this midpoint of the chip group range was raised as well as the overall company revenue range. checking texas instruments’ shares, after all those numbers thrown at you, we see people said this revenue range increasing just .6% for the midpoint, we. expected better than that, texas instruments shares down 44 cents in extended-hour trading and wanted to check shares of other companies exposed to the cell phone industry. this is all extended hours, since the close of trading, nokia up a penny a share. motorola down nine cents a share, qualcomm up seven cents a share and moving on, other chip stocks to see to what degree they are or are not responding to the texas instruments’ news, intel shares down 10 cents a share at 2865. broadcom down 14 cents a share and micron unchanged in the extended hours.
>> thank you very much. i put together the graph to chart extended hours on texas instruments. the red line on top is the close today. we added 4% in regular trade bringing the two-day tally, the biggest move in several days. not a giant decline in the% latest move, in keeping with the small change in the revision. looking at the big picture going back 20 years with texas instruments, you can see the exponential runup, the decline and bounce back again. tightening this up, because technically, there’s a couple of things that will stand out. the first thing is this resistance that we’ve hit once before at approximately $33 a share or just about, really more like $35 a share. the red line above that is the second level of resistance and now you’re up around $42 and the third line, of course, of resistance if we get to that one would be up above $50. clearly, this company is a stock that’s facing an uphill battle at least technically speaking. if we want, i can show you even one more chart, here, showing you relatively strength in that the stock had been overbought in terms of its relative strength index back in january when it hit a high and it had fallen close to that oversold line. you see the green circle there, the year-to-date low when it actually did trigger an oversold indicator and that, had you bought there, you would have made a bounce of a couple of bucks but nonetheless, that would indicate, on the relative strength index, a buying opportunity. there you have texas instruments illustrated with pictures and arrows and the parograph on the back of each one, as arlo guthrie sang. and the highest level in six weeks, closing at the best level of the day at the new york stock exchange.
>> what we did see, carryover from the jobs report we saw from friday. 947,000 jobs being created over the past three months. so very positive. also, the technicals really helped out this market . i was talking with peter henderson of fleet specialists and he said the technicals were screaming for a rally as the dow moved above its 50-day moving average, above its 200-day moving average and the s&p and nasdaq above their 50- and 200-day moving averages. however, the one thing limits enthusiasm was the lighter-than-average volume, something plaguing the market at the new york stock exchange for eight trading days, longer on the nasdaq. speaking of the nasdaq, they closed above the―above 2000 for the first time since april 27. if you look at how big the move% that we did see in today’s% session, all three major indexes closed at their highest in only six weeks, that since april 27. the biggest one-day gain in a couple of weeks for all three major indexes and the first time that we saw our indexes posting back-to-back gains and the last time we saw that was made 3 or 4. leading the move was the semiconductors. we just were talking about texas instruments. this certainly a big move friday, a big move in today’s session on texas instruments, with the semis, tech hardware and materials performing well and not only did we see tech stocks like e.m.c., also i.b.m., also scientific atlantic performing well, many broker/dealers and financials sending in a very impressive performance today.
>> thank you very much. i had just―looking at that moving average, the volume we% -talked about on the new york stock exchange has been trading down. if you want to peek at that, we can. there’s a chart here with the red line showing the weakness. that’s the moving average inside of the last couple of days or so that you can see that the volume has really triggered down so the averages themselves trading% -lower.% also today, microsoft says it held talks late last year about a possible merger with s.a.p. the german company, of course, the world’s largest maker of business management software with a market value of about $50 billion. microsoft says the talks broke off due to the complexity of a possible deal, both companies saying they have no intention of resuming any discussions. talks show microsoft is more willing than investors previously thought to use some of their cash for acquisition. our next guest expects higher interest rates will have a big effect on stocks, and not a good one. peter boockvar with miller tabak tabaktabak will join us next.
