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Market Analysis: Stocks Move Amidst Cautious Trading Ahead of Weekend

Strategic Insights

— 2 min read

The Dow Jones has turned negative, declining by 5 points on a Friday afternoon, with an even split between up and down volume earlier in the day. However, most of the volume in the past half hour has been to the negative side, crossing 1 billion shares on the New York Stock Exchange. IBM and Dell Computer are among the notable stocks moving in the market, with IBM reinforcing its guidance for the full year and Dell raising its guidance for the quarter. Meanwhile, Martha Stewart's stock has seen a dramatic move, with the company saying it sees this as an important step toward closure after 26 months of uncertainty.

Key Takeaways:

  • The Dow Jones has turned negative, declining by 5 points, with an even split between up and down volume earlier in the day.
  • IBM has reinforced its guidance for the full year, while Dell has raised its guidance for the quarter, with the company expecting second-quarter earnings of 31 cents a share.
  • Martha Stewart's stock has seen a dramatic move, with the company saying it sees this as an important step toward closure after 26 months of uncertainty, despite the company's founder facing prison time.
  • Netflix has reported earnings that were two cents shy of expectations, leading to a 27% decline in stock price.
  • Rambus has reported earnings of 8 cents a share, a 84% increase from last year, and has agreed to share intellectual property with Cadence Design Systems, a chip design company.
  • The acquisition costs for new subscribers for Netflix have increased to $35.12, up from $30.45 in the previous quarter period.

Statistics:

  • The Dow Jones has declined by 5 points on a Friday afternoon.
  • IBM has reinforced its guidance for the full year.
  • Dell expects second-quarter earnings of 31 cents a share.
  • Netflix's share price has declined by 27% after reporting earnings that were two cents shy of expectations.
  • Rambus has reported a 84% increase in earnings to $8.3 million.
  • The acquisition costs for new subscribers for Netflix have increased to $35.12, up from $30.45 in the previous quarter period.
  • Rambus will receive $16 million from Cadence Design Systems under the intellectual property sharing agreement.

Sources:

  • Pat Kiernan, CNNfn Anchor, "The Money Gang"
  • Greg Clarkin, CNNfn Correspondent, "The Money Gang"
  • IBM [Company: International Business Machines Corporation; Ticker: IBM; URL: http://www.ibm.com/]
  • Dell Computer [Company: Dell Inc.; Ticker: DELL; URL: http://www.dell.com/]
  • Netflix [Company: Netflix Inc.; Ticker: NFLX; URL: http://www.netflix.com/]
  • Rambus [Company: Rambus Inc.; Ticker: RMBS; URL: http://www.rambus.com/]
  • Cadence Design Systems [Company: Cadence Design Systems Inc.; Ticker: CDN; URL: http://www.cadence.com/]

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