As investors digest yesterday's earning announcements and prepare for a new batch of results today, the market looks set for a fairly weak open this morning.
S&P 500 futures on
were down 1.5 to 1483, about two and a half points below
fair value as calculated by
, and indicating a slightly lower opening. The thinly traded
futures were behind 13 to 3875, about 25 points below fair value as calculated by
, and showing downward pressure for the Nasdaq's start.
In preopen action, shares of
climbed to 88 on
, from a closing price of 87. Last evening, the world's No. 2 networking equipment supplier wowed investors with news that second-quarter profits climbed 75%. Nortel posted earnings of 18 cents a share, beating the 29-analyst 15 cent estimate and the year-ago 11 cent profit.
Nortel, which is in talks to sell its optical-parts unit to
, in a deal that could be valued at over $100 billion, said revenue increased 48% to $7.8 billion in the second quarter, up from $5.28 billion last year.
also attracted investor attention this morning. On
, which uses decimal pricing, about 2,000 shares of eBay changed hands this morning. At last look, the stock was at 56.25 and in-line with last night's closing price.
After yesterday's closing bell, eBay posted second-quarter earnings of 5 cents a share, besting the 24-analyst estimate by 2 cents and up from year-ago earnings of 2 cents. The company's number of registered users grew to 15.8 million by the end of June, up from 12.6 million in the previous quarter and 5.6 million a year ago.
Trading was mixed in overseas action. After midession, Germany's Xetra Dax dropped 0.45%. France's
was ahead 1.01%, while the U.K.'s
was also up 0.10%. Japan's
fell 0.43% overnight, while Hong Kong's
Tuesday's After-Hours Trading
David A. Gaffen
Updated from 7:09 p.m. EDT
More earnings talk is dominating the action among the weary souls who didn't get enough before the 4 p.m. close, and as usual, there's a couple of stocks getting the Edward II
treatment tonight. The big-cap stalwarts, such as
, are seeing a mild boost in after-hours action, but the late traders are concentrating on killing names like
LSI Logic was the most active on
, as the stock dropped 8.3125, or 17%, to 40.50 on 835,750 Instinet shares after reporting earnings of 29 cents a share, meeting the 21-broker
First Call/Thomson Financial
The stock finished the day session up, at 48 3/4, but was killed in after-hours action.
The communications chipmaker is suffering from poor comparisons to similar stocks in its sector, such as
, both of which reported strong quarters.
was among the most active as well, gaining 4.50 to 87 on 394,300 Instinet shares, after the company reported a second-quarter profit of 18 cents a share, compared with earnings of 11 cents at this time last year. The 29-broker consensus was looking for earnings of 15 cents, according to the fine folk at
First Call/Thomson Financial
Investors also gave their finest Bronx cheers to
, an Internet infrastructure company, after the company reported earnings postclose tonight.
The company said revenues for the fiscal third quarter amounted to 17 cents a share, compared with a 15-cent loss at this time a year ago. The company missed Wall Street's estimates by 2 pennies -- as the seven-broker consensus was looking for 19 cents a share, according to First Call/Thomson Financial.
The stock, after getting shredded in early after-hours action, recovered late, losing just 81.25 cents to 42 on 137,000
shares, Island's second-most active. It was down 2.8125 to 40 on 169,000 Instinet shares.
Art Technology Group
, which may now be spared the indignity of appearing on some sort of ham-handed
list of companies most likely to run out of money in the next 10 minutes. The company announced its first profitable quarter, and it's ramping up in after-hours trading as a result.
Art Technology said it earned 4 cents a share, compared with an 8-cent loss in the second quarter of 1999, and besting the 11-broker First Call/Thomson Financial consensus estimate of a 3-cent loss. The stock was up in the late session 10.9219 to 114.1875 on 30,000 Island shares. Art Technology's prospects figure to look strong for coming quarters, as the company recently won a contract to design a Web site for
, the subsidiary of
Speaking of companies running out of money, it's always a fine time to discuss
, which eked out a 15/32 gain in trading today. For
, that's a mild tremor. For drkoop, it was good enough for a 32% rally.
Night owls took the stock down before it recovered late, ending off 3.13 cents to 1.9063 on 26,200 Island shares. Oh, and no word on whether he's going to shave the beard, grow a mustache, or both.
fell sharply, losing 4.875 to 38.75 on 66,500 Island shares after the company reported earnings of 1 cent a share, ahead of the 17-broker consensus on First Call/Thomson Financial, which expected the company to earn nothing (but also lose nothing -- very Zen-like).
This information is provided by Instinet, a wholly owned subsidiary of Reuters (RTRSY) . For further information, please contact Instinet at www.instinet.com.
Island ECN, owned by Datek Online Holdings, offers trading, mainly in Nasdaq-listed stocks, from 7 a.m. to 8 p.m. EDT.
explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.