UPS AND DOWNS
Closing Market Numbers -- 08/19/99DJIA 10963.84 -27.54 (-0.25%) S&P 500 1323.59 -9.25 (-0.69%) Nasdaq 2621.43 -36.30 (-1.37%) Russell 2000 432.77 -0.33 (-0.08%) 30-Year Bond 101 5/32 -17/32 6.04 Yield
U.S. Foodservice, Netro Corp, CV Therapeutics, Venator Group, The Bank of New York, eBay, and other market movers... August 19, 1999
UPSFood products distributor U.S. Foodservice (NYSE: UFS) served investors a warm helping of one-day gains, jumping $3 1/4 to $22 after delivering its 20th consecutive quarter of record sales and operating earnings. The company posted diluted EPS before extraordinary charges of $0.91, a 34% increase from $0.68 a year ago.
Broadband wireless system provider Netro Corp. (Nasdaq: NTRO) rocketed $15 1/2, or 193.8%, to $23 1/2 after selling 5 million shares in an initial public offering at $8 each. E-commerce software company Wink Communication Inc. (Nasdaq: WINK) soared during its trading debut as well, rising to $19 11/16 to $35 11/16.
Cardiovascular disease drugmaker CV Therapeutics (Nasdaq: CVTX) strode $4 15/16 to $13 13/16 after announcing positive results from treadmill tests for Ranolazine, an experimental drug used to treat patients with stable angina. The trial was the first of two key phase-three tests for the drug. CV Therapeutics estimates that 7.2 million Americans suffer from angina.
Web-based email software company CommTouch Software Ltd. (Nasdaq: CTCH) delivered $3 3/16 to $14 1/4 despite reporting a second quarter loss of $1.66 per share compared to $0.72 per share a year ago. Analysts at Warburg Dillon Read and U.S. Bancorp. Piper Jaffray rated the stock a "strong buy."
DOWNSFoot Locker stores operator Venator Group (NYSE: Z) stumbled today, fumbling $1 5/8 to $8 3/8 after the company reported Q2 EPS of $0.04 (before restructuring charges), a penny better than expected but just flat with last year's levels. Same-store sales, both quarter-to-quarter and year-to-date, are flat with last year's levels. Gross margins fell nearly 3% from a year ago. Venator closed 84 stores, opening 49.
Shares of The Bank of New York (NYSE: BK) lost $1 5/8 to $37 today. The company is reportedly cooperating with U.S. investigators to find out whether Russian mobsters used the bank to launder some $10 billion since last year. A company spokesman told reporters that the bank isn't facing any allegations of wrongdoing and no customers or funds have been lost in connection with the allegations.
After rising yesterday on the words of Merrill Lynch net analyst Henry Blodget, the market let the air out of several big name Internet stocks. eBay (Nasdaq: EBAY) slipped $12 3/16 to $113 3/4, Amazon.com (Nasdaq: AMZN) dipped $7 to $106 1/8, and Yahoo! (Nasdaq: YHOO) missed $5 7/8 to $139 3/16.
Telecommunications equipment maker ADC Telecommunications (Nasdaq: ADCT) dropped $3 7/16 to $40 7/16 after reporting fiscal third quarter earnings (before a one-time charge related to purchase and development expenses) of $0.37 per diluted share, slightly below the high-end of earnings estimates.
Computer component maker Smart Modular Technologies (Nasdaq: SMOD) lost $1 3/16 to $18 13/16 after announcing it had reached agreement with Compaq Computer (NYSE: CPQ) to buy its embedded and real-time product line. Terms of the deal were not disclosed.
Data and voice network services firm Convergent Communications (Nasdaq: CONV), which said John Phibbs resigned as CFO, retreated $1 1/4 to $11 7/16 today. The company said Steven Hansen, vice president of finance, will fill in during the search for a replacement.