U.S. stocks head for higher open on tech strength
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U.S. stocks head for higher open on tech strength
CBS MarketWatch
U.S. stocks head for higher open on tech strength
Tuesday July 22, 8:44 am ET
By Steve Gelsi
NEW YORK (CBS.MW) - U.S. stocks headed for a stronger open on Tuesday on the back of the tech sector, which received a lift from better-than-expected results from Texas Instruments.
Financial stocks will also provide leadership, with Lehman announcing an expected purchase of Neuberger, and earnings from Ameritrade and Countrywide weighing in.
S&P futures rose 4 points and Nasdaq futures are trading 11.5 points higher.
Texas Instruments (NYSETXNNews) is fueling chip stocks with a gain of 4.5 percent to $18.69 in pre-market action after its net income and sales slightly surpassed targets for the quarter, but the company is still cautious. CFO Bill Aylesworth said TI remains concerned about excess inventory built up by its customers that manufacture cell phones.
Big cap stocks are in the spotlight as well, with Dow component General Electric drawing a Merrill Lynch downgrade on its 2003 earnings forecast to $1.57 from $1.59 per share.
The broker said the move was "largely driven by reduced expectations for plastics and incremental adjustments for early retirement charges in the third quarter of 2003." The stock fell 62 cents to $27.16 on Monday.
United Parcel Service (NYSEUPSNews) reported second-quarter net income of $692 million, or 61 cents a share, up from $611 million, or 54 cents a share in the same period a year ago, and above the average analyst forecast compiled by Reuters Research of 59 cents a share. Total revenue rose 7.1 percent to $8.23 billion, topping analyst expectations of $8.12 billion. The stock closed Monday up 42 cents at $64.79.
Lehman Brothers (NYSELEHNews) said it will acquire Neuberger Berman (NYSENEUNews) in a transaction valued at about $2.625 billion as of Tuesday morning. The deal includes $42 million in in-the-money options and less $255 million in net excess cash as of June 30 and excluded 1.6 million unvested restricted shares in employee compensation plans. Under the terms of the agreement, based on Tuesday's closing stock price, each Neuberger Berman shareholder would receive an implied price of $41.48 per share consisting of $9.49 in cash and 0.496 shares of Lehman Brothers common stock. The merger had been expected for weeks.
Lehman stock rose 75 cents, or 1.2 percent, to $65.25 in pre-market trades on Instinet. Neuberger shares gained 6 cents to $40.50.
Overall, Wall Street is eyeing more mergers both within the financial sector and elsewhere.
Household products giant Colgate Palmolive (NYSECLNews) said its second-quarter earnings per share met Wall Street estimates as all its businesses recorded volume gains. The company earned net income of $359.8 million, or 62 cents per share in the latest quarter, versus $327 million, or 55 cents per share a year ago. Revenues rose to $2.46 billion in the quarter, compared to $2.30 billion a year ago. Shares closed unchanged at $56.30 on Monday.
Financial sector earnings
Countrywide Financial (NYSECFCNews) reported second-quarter earnings of $2.74 per share, up from $1.48 a share in the comparable quarter a year ago. The mortgage and financial services provider said it saw revenue in the period of $1.739 billion vs. $977.43 million. Countrywide pegged 2003 earnings in the range of $13 to $15 a share, ahead of the Wall Street estimate for earnings of $10.76 per share. The stock jumped 15 cents to $65.72 on Monday.
Discount Internet broker Ameritrade Holdings (NasdaqNMAMTDNews) said third fiscal quarter income was $49.9 million, or 12 cents a share vs. 3 cents a share a year ago. Net revenue rose to $188.5 million vs. $100.3 million a year ago. Ameritrade said it opened 93,000 new accounts in the quarter. The online broker beat the Wall Street forecast of 10 cents per share by 2 cents. The stock fell 8 cents to $8.25 on Monday.
The dollar was weaker vs. the euro. The common currency notched gains of around 0.2 percent to $1.1360. Asian stocks were mixed; European stocks were turning higher after a mid-morning slump.
U.S. stocks head for higher open on tech strength
Tuesday July 22, 8:44 am ET
By Steve Gelsi
NEW YORK (CBS.MW) - U.S. stocks headed for a stronger open on Tuesday on the back of the tech sector, which received a lift from better-than-expected results from Texas Instruments.
Financial stocks will also provide leadership, with Lehman announcing an expected purchase of Neuberger, and earnings from Ameritrade and Countrywide weighing in.
S&P futures rose 4 points and Nasdaq futures are trading 11.5 points higher.
Texas Instruments (NYSETXNNews) is fueling chip stocks with a gain of 4.5 percent to $18.69 in pre-market action after its net income and sales slightly surpassed targets for the quarter, but the company is still cautious. CFO Bill Aylesworth said TI remains concerned about excess inventory built up by its customers that manufacture cell phones.
Big cap stocks are in the spotlight as well, with Dow component General Electric drawing a Merrill Lynch downgrade on its 2003 earnings forecast to $1.57 from $1.59 per share.
The broker said the move was "largely driven by reduced expectations for plastics and incremental adjustments for early retirement charges in the third quarter of 2003." The stock fell 62 cents to $27.16 on Monday.
United Parcel Service (NYSEUPSNews) reported second-quarter net income of $692 million, or 61 cents a share, up from $611 million, or 54 cents a share in the same period a year ago, and above the average analyst forecast compiled by Reuters Research of 59 cents a share. Total revenue rose 7.1 percent to $8.23 billion, topping analyst expectations of $8.12 billion. The stock closed Monday up 42 cents at $64.79.
Lehman Brothers (NYSELEHNews) said it will acquire Neuberger Berman (NYSENEUNews) in a transaction valued at about $2.625 billion as of Tuesday morning. The deal includes $42 million in in-the-money options and less $255 million in net excess cash as of June 30 and excluded 1.6 million unvested restricted shares in employee compensation plans. Under the terms of the agreement, based on Tuesday's closing stock price, each Neuberger Berman shareholder would receive an implied price of $41.48 per share consisting of $9.49 in cash and 0.496 shares of Lehman Brothers common stock. The merger had been expected for weeks.
Lehman stock rose 75 cents, or 1.2 percent, to $65.25 in pre-market trades on Instinet. Neuberger shares gained 6 cents to $40.50.
Overall, Wall Street is eyeing more mergers both within the financial sector and elsewhere.
Household products giant Colgate Palmolive (NYSECLNews) said its second-quarter earnings per share met Wall Street estimates as all its businesses recorded volume gains. The company earned net income of $359.8 million, or 62 cents per share in the latest quarter, versus $327 million, or 55 cents per share a year ago. Revenues rose to $2.46 billion in the quarter, compared to $2.30 billion a year ago. Shares closed unchanged at $56.30 on Monday.
Financial sector earnings
Countrywide Financial (NYSECFCNews) reported second-quarter earnings of $2.74 per share, up from $1.48 a share in the comparable quarter a year ago. The mortgage and financial services provider said it saw revenue in the period of $1.739 billion vs. $977.43 million. Countrywide pegged 2003 earnings in the range of $13 to $15 a share, ahead of the Wall Street estimate for earnings of $10.76 per share. The stock jumped 15 cents to $65.72 on Monday.
Discount Internet broker Ameritrade Holdings (NasdaqNMAMTDNews) said third fiscal quarter income was $49.9 million, or 12 cents a share vs. 3 cents a share a year ago. Net revenue rose to $188.5 million vs. $100.3 million a year ago. Ameritrade said it opened 93,000 new accounts in the quarter. The online broker beat the Wall Street forecast of 10 cents per share by 2 cents. The stock fell 8 cents to $8.25 on Monday.
The dollar was weaker vs. the euro. The common currency notched gains of around 0.2 percent to $1.1360. Asian stocks were mixed; European stocks were turning higher after a mid-morning slump.
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