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schaeffer's market recap

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    Market Recap

    The market was awash in a sea of red today as software stocks came under
    fire due to a fourth-quarter sales warnings from German software provider
    SAP. The company announced that its software revenues will decline three
    percent from the 930 million euros reported last year. While SAP said it
    expects to significantly exceed its earnings target for the full year,
    investors send the stock plummeting nearly five percent by midday.

    Even news of several contracts being awarded out of China failed to lift
    spirits. Intel reported that it won Chinese contracts from Legend Group and
    Founder Technology worth approximately $300 million. Also, Motorola won
    deals worth approximately $1 billion from China Unicom and China Mobile.
    Furthermore, UTStarcom received a $200-million contract from China Telecom
    to provide communications equipment. Meanwhile, both Lucent Technologies
    and Juniper Networks won a $350-million contracts from China Unicom and
    China Telecom.

    Turing to earnings news, Borders Group (BGP) updated its earnings guidance
    to $1.48 to $1.52 per share, compared with the previously announced $1.45
    to $1.50. The firm reiterated its full-year growth at 12-15 percent.
    Analysts currently estimate earnings for BGP at $1.49 per share. Investors
    sent Helen of Troy skyward by than 16 percent after the company reported
    third-quarter earnings of $25.1 million, or 78 cents per share, up from its
    year-ago profit of $16.8 million, or 57 cents per share. Analysts polled by
    Thomson First Call were anticipating earnings of 62 cents per share. The
    personal care product provider also lifted its outlook for the year to
    profits of $2.05 to $2.10 per share.

    In addition, Boston Scientific stated that it anticipates fourth-quarter
    earnings to come in at or slightly above its current guidance of 14-16
    cents per share. The Street is currently forecasting a profit of 16 cents
    for the quarter. What's more, Storage Technology expects fourth-quarter
    results to be better than previously expected, raising its guidance to 55
    cents per share on sales of $650 million. Analysts are estimating profit of
    only 50 cents on sales of $603 million.

    In merger news, Abbot Laboratories (ABT) announced today that it was buying
    TheraSense (THER), which manufactures blood glucose self-monitoring
    systems, for $27 per share in cash. The deal is estimated to be worth a
    total of $1.2 billion. In intraday trading, ABT was down half a percent
    while shares of THER have soared more than 30 percent.

    In commodities news, crude oil topped the $35 level this afternoon on
    mounting fears of transport delays, predictions of a cold spell, and
    declining inventory levels. The February contract rolled over near the end
    of the session to close the day down 0.78 percent at $34.45. Gold prices
    also tumbled into the close as the contract struggled to hold onto the $425
    level. The February contract glided as high as $426.7 today before finally
    slipping into the close at $424, down 0.61 percent.

    The Dow Jones Industrial Average spent the majority of the day mired in
    negative territory. The average finished the session down 58 points (or
    0.55 percent). What's more, the Dow tumbled low enough to tag support at
    its rising 20-day moving average (at 10,367). Among its 30 components, only
    nine (American Express, Caterpillar, Eastman Kodak, Honeywell
    International, J.P. Morgan Chase, Altria Group, AT&T, Wal-Mart Stores, and
    United Technologies) closed the day higher. Furthermore, the Nasdaq
    Composite tumbled 15 points (or 0.73 percent). The tech-laden index sit has
    potential support below at its rising 10-day moving average (at 2060).

    Levels to watch for in Wednesday's trading :


    Dow Jones Industrial Average (INDU) - support at 10,000; resistance at 10,
    600


    S&P 500 (SPX) - support at 1090, resistance at 1160


    Nasdaq Composite (COMP) - support at 2000; resistance at 2200
 
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Last
$4.06
Change
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Mkt cap ! $3.206B
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$4.05 $4.11 $4.01 $8.875M 2.189M

Buyers (Bids)

No. Vol. Price($)
5 27119 $4.05
 

Sellers (Offers)

Price($) Vol. No.
$4.07 2345 1
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Last trade - 16.10pm 07/08/2020 (20 minute delay) ?
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