Market briefing---Lane (medium)
Earning numbers---Bob (fast)
NYSE---Deb (fast)
Nasdaq---Anthony (slow)
>> welcome to “world financial report”. i’m lane bajardi in new york. glad you are with us. as the earnings come fast and furious in the extended trading we have our bob bowden standing by to break down the very latest numbers we have. robert, take it away.
>> well, indeed, mr. by jarreddy we’re ready to rock and roll with the earnings numbers. we begin with the first story. i believe we are going to ebay first. operating earnings of 37 cents a share, two cents ahead of expectations. moving on we also have ebay reporting revenue numbers. let’s get to that screen, if we could. revenue numbers for ebay are as follows. the forecast for flex tron, moving on in a second we’ll have the ebay numbers. we having a little problem with ebay numbers. we’ll have to―we’ll have to stall for a second until we get those worked out. sometimes in live television you have these, you know, couple problems that happen here and there, but the point is if you stay with it, we’ll get the numbers to the people. >> i think―tell you what. why don’t we go to starbuck’s, bob.
>> let’s try that. here we go. starbuck’s coming in at 17 cents a share. that’s one cent ahead of expectations. you can see on the screen. moving on to―we have the revenue number also beating expectations, $1.04 billion, compared to $1.03 the estimate. checking the forecast for the kurcht kurnt quarter, 17 cents a share, meeting the analysts’s expectations. checking starbuck’s shares at this hour down 3% at $25.5. avaya, the telecom equipment company with flat earnings for the fiscal third quarter, i should say, break even would be the correct term which is in line with the analysts expectations. revenue fell short, as you can see there, by $10 million. the company reporting $1.07 billion and $1.08 expected. on the basis of those break even numbers we are seeing a rally in avaya shares, right now up about 6.5% in the extended hours. and let’s see. moving on, we have coming up next on the hit parade, flextronics. flextronics reporting four cents a share, a penny behind the five-cent expectations. we have flextronics reporting revenue numbers below expectations of $3.11 billion, $3.13 expected. checking the forecast, flextronics sees six to eight cents a share, presenting a seven-cent mid point. that below the eight-cent analyst estimate. at the mid point we see flextronics shares down 3% in the extended hours. moving on to gateway, the company reporting a narrower loss thanpectsed, 2 cents were lost in the second quarter by gateway. analysts expected a loss of 28 cents. revenue came in below expectations, 8 $800 million, $804 million expected. checking gateway shares at this hour, gateway shares up about 2% on the extended hours session. lane, back to you.
>> bob bowden, thank you. we also have another late developing story. standard & poor’s has cut california’s general obligation debt rating. the $26.8 billion of california’s was downgrade three notches to bbb from a. that is two notches above junk status. some investors now may be forced to sell their california municipal bonds since the rating is below a. s&p says the downgrade comes as the state has made little progress in adopting a 2004 budget, aggravated by the gubernatorial recall election that was scheduled today for october 7th. we’ll be getting reaction to this news about california’s debt rating coming up. in the meantime in the regular session stocks fell erasing earlier gains after traders said brokerage firms sold hundreds of futures contracts tied to the s&p 500. running down the numbers, the dow jones industrial average lower by 81 points at 9,112. the s&p 500 down seven at 981. the nasdaq lower by 17 at 7 1,701. big board volume, 1.5 billion shares ahead of the last few days, and declines outpacing advancers. same story on the nasdaq at 1.8 billion shares. treasuries fell after the government’s report showing initial jobless claims unexpectedly dropped last week. the 10-year note down 14/32. the three year note didn’t see as much movement. the dollar rose against the euro/dollar and yen after the release of that employment report. that’s how things stand at the moment.
>> dramatic turn around in today’s session, keeping up with today’s action was deborah kostroun who is at the new york stock exchange with more on this. things were looking strong for the bullish investor for quite some time. then at the end of the day it went south.
>> that is exactly right, lane. as you were mentioning a couple moments ago, that hundreds of those s&p futures contracts selling. in fact, some traders at the chicago mercantile exchange saying when these hundreds of contracts came through and being sold really weren’t a lot of traders in the pit, so it caused a little bit of an anomaly. we did see the market really kind of selling off. then there was also a news report coming out of philadelphia, the of inquirer that a small plane flew into the president’s motorcade. however, also some―the “no-fly zone”, also four f-16 fighter jets were forcing the four-seat plane to land in new jersey. the secret service is investigating that. that created a little bit of discomfort at least for some people as they were kind of watching this market. now, some of the stocks , even though we did see a turnaround closing near the lowest level of the day, the dow at its worst levels, down 87 points, closing down 81. we saw the weakness in the last two hours of trading. but at&t, at&t wireless, also dupont closing higher and maintaining the lead that we saw rlier in the session. computer associates at a 52-week high. that, of course, after they had their first quarterly profit in more than two years, 52-week high on that stock . alcoa, also american international group, also maintaining its lead by the closing belt some news that came out after the close of stock market trading, and likely to have an impact in tomorrow’s session with dow component boeing, and the news on boeing is hearing that they are now going to be barred from air force contracts. boeing is being suspended by the air force from seeking u.s. contracts as the air force saying there were serious violations of federal law in the alleged use of documents from lockheed martin to win a $1.5 billion rocket contract. this goes back to 1998, and the air force also stripped seven launchs from boeing’s schedule. in fact, the government said their inquiry found boeing was in possession of thousands of pages of lockheed martin proprietary documents during that 1998 selection. they also said that the pentagon saying they really do not tolerate breaches of procurement integrity, and they do hold the industry and the employees liable for that kind of work. so one of the reasons that likely to see a lot more focus on this in boeing tomorrow. back to you, lane.
>> deborah kostroun at the big board. the nasdaq was trading higher for a third straight day, reaching 1,740 at one point. but it turned lower along with the rest of the market to close a point above 1700. anthony massucci has more on the nasdaq and software stocks . the nasdaq turned, it was up most of the day, the last couple of hours trading the nasdaq started to turn lower, finishing down 17 points, a 13r7b9 drop. let me give you software names because the software index was one of the indexes that fell today. microsoft was up earlier, wound up closing the day lower. they met with analysts today, and they said they planned to hire as many as 5,000 people this year, a 10% increase of their workforce. they also planned to boost spending on research, up to $6.9 billion. that’s in fiscal 2004. microsoft, though, turned lore. it was up earlier. here are a couple of other software names that went down. net screen. shares fell, and the company makes equipment to safeguard computer networks. they said sales in the current quarter may miss analysts’ estimates. that was enough to send the shares lower. citrix systems saw its stock fall today. the company makes software used to share programs over networks. they said third quarter profit may miss analysts’ forcasts and c.e.o. mark templeton said the market is still fragile. there were some big moves in software names. actually software names that went higher. symantec today went up about $4. the first quarter sales rose $24%. the consumers spent more on programs that protect their p.c.’s. that’s what helped boost the quarter. bank of america analyst robert stimp son likes the stock to go to $55 in a year. you see today’s close. veritas, this stock up about $2. the company said second quarter profit rose 87% and they had record sales. that helped boost that stock . one more to show, electronic arts hit a record high. it was up $4. they make video game software, first quarter profit more than doubled at that company. back to you in the studio.
>> anthony massucci. our next guest says he’s bearish on treasuries because prices are still hoo too high. gary pollack with deutsche banc private wealth management will join us to tell us which type a bonds to invest in now. he’ll give us his reaction to california.
