TECH STOCKS sidetracked by earnings worries during the day zoomed higher in after-hours trading after Microsoft (MSFT) affirmed its prior forecast on higher-than-expected revenues, while Web portal Yahoo! (YHOO) and cell-phone and chip maker Motorola (MOT) both beat Wall Street estimates by a penny to kick off the earnings season.
The Nasdaq-100 tracking stock (QQQ) shot 6% higher in the afterhours, presaging a bullish open on Thursday. Earlier in the day, the Nasdaq Composite Index gained 9.25 in the regular session to 1972.04, while the Dow Jones Industrial Average finished up 65.38 points to 10241.02. The S&P 500 index slid 1.34 to 1180.18, its lowest point in 12 weeks.
Microsoft said revenues for the quarter ended in June would total $6.5 billion to $6.6 billion, slightly above its previous estimate. Results from operations will be in line with previous guidance, though a $3.9 billion write-off of equity stakes in other companies will depress earnings to a penny a share. The stock gained 6% to $70.42 in after-hours trading.
Motorola reported quarterly losses of 11 cents a share, a penny better than the consensus estimate. Cell-phone revenues dropped 25% and semiconductor sales plummeted 38% from the year-ago totals, but the company said the chip sector "should resume a double-digit growth pattern next year." The stock added 5% in after-hours trading to a 1% gain in the regular session.
Yahoo also had something to shout about after producing earnings of a penny a share instead of the break-even results analysts were expecting. Revenue fell 33% to $182.2 million but beat forecasts of $175.1 million. The stock rose 8% in the afterhours, more than recouping a 4% loss earlier in the day.
In regular trading, the winning trifecta was planes, trains and automobiles, with car makers, railroads and (to a lesser extent) airlines among the leading sectors. General Motors (GM) helped the Dow higher, rising 4% after Lehman Brothers said it may beat its short-term earnings target. DaimlerChrysler (DCX) gained 5% after another analyst lauded the ongoing turnaround at its Chrysler unit. Even Ford (F) moved 2% higher on the eve of a board meeting at which Chief Executive Jacques Nasser might have to answer pointed questions about the company's safety and sales problems.
The Nasdaq-100 tracking stock (QQQ) shot 6% higher in the afterhours, presaging a bullish open on Thursday. Earlier in the day, the Nasdaq Composite Index gained 9.25 in the regular session to 1972.04, while the Dow Jones Industrial Average finished up 65.38 points to 10241.02. The S&P 500 index slid 1.34 to 1180.18, its lowest point in 12 weeks.
Microsoft said revenues for the quarter ended in June would total $6.5 billion to $6.6 billion, slightly above its previous estimate. Results from operations will be in line with previous guidance, though a $3.9 billion write-off of equity stakes in other companies will depress earnings to a penny a share. The stock gained 6% to $70.42 in after-hours trading.
Motorola reported quarterly losses of 11 cents a share, a penny better than the consensus estimate. Cell-phone revenues dropped 25% and semiconductor sales plummeted 38% from the year-ago totals, but the company said the chip sector "should resume a double-digit growth pattern next year." The stock added 5% in after-hours trading to a 1% gain in the regular session.
Yahoo also had something to shout about after producing earnings of a penny a share instead of the break-even results analysts were expecting. Revenue fell 33% to $182.2 million but beat forecasts of $175.1 million. The stock rose 8% in the afterhours, more than recouping a 4% loss earlier in the day.
In regular trading, the winning trifecta was planes, trains and automobiles, with car makers, railroads and (to a lesser extent) airlines among the leading sectors. General Motors (GM) helped the Dow higher, rising 4% after Lehman Brothers said it may beat its short-term earnings target. DaimlerChrysler (DCX) gained 5% after another analyst lauded the ongoing turnaround at its Chrysler unit. Even Ford (F) moved 2% higher on the eve of a board meeting at which Chief Executive Jacques Nasser might have to answer pointed questions about the company's safety and sales problems.
