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Stocks in the News: Market Performance and Company Updates

Strategic Insights

— 2 min read

On Friday, the major indices performed exceptionally well despite record oil prices, with the Dow rising 0.69% and the Nasdaq and S&P 500 increasing by 1.0% and 0.65%, respectively. This rally was reflected in the fact that only two S&P industry groups - Food Distributors and Personal Products - dropped more than 1.0% for the week, while the technology sector led the rebound effort. Several companies also experienced significant stock price movements, including Wachovia Corporation, Cree Incorporated, Lasik America Incorporated, Gap Incorporated, and McDATA Corporation.

Key Takeaways:

  • Wachovia Corporation shares rose 0.79% to close at $45.90 due to an upgrade from "Hold" to "Buy" by Smith Barney Citigroup, citing low earnings risk, potential upside to EPS, and a relatively cheap stock price.
  • Cree Incorporated shares increased 3.38% during normal trading and 0.16% in after-hours trading, reaching $25.47, following an initiation of coverage at a "Buy" rating with a price target of $31 by Wells Fargo Securities.
  • Lasik America Incorporated, a fast-growing micro-cap medical stock, acquired Salus Holdings, a New York-based company operating an Italian Kidney Dialysis business, and will acquire an initial 30% interest in six Italian Dialysis Centers with revenues exceeding $US 8.5 million.
  • Gap Incorporated gained 2.33% to finish at $20.62 despite a downgrade from "Buy" to "Hold" by Jefferies & Co, which adjusted its estimates to $0.31 for Q3 and $0.46 for Q4, and reduced its 2005 estimate to $1.55 from $1.60.
  • McDATA Corporation lost 1.23% last week, but First Albany upgraded it from "Underperform" to "Neutral", citing the company's better-than-expected performance in the quarter.

Statistics:

  • Wachovia Corporation's stock price increased by 0.79% to close at $45.90 on Friday.
  • Cree Incorporated's shares rose 3.38% during normal trading and 0.16% in after-hours trading, reaching $25.47.
  • Lasik America Incorporated acquired Salus Holdings, a New York-based company operating an Italian Kidney Dialysis business.
  • Gap Incorporated's stock price gained 2.33% to finish at $20.62 despite a downgrade from "Buy" to "Hold" by Jefferies & Co.
  • McDATA Corporation's stock price dropped 1.23% last week, but was upgraded from "Underperform" to "Neutral" by First Albany.
  • The Dow rose 0.69% last week, while the Nasdaq and S&P 500 increased by 1.0% and 0.65%, respectively.
  • The three major indices performed exceptionally well in the face of record oil prices for September delivery of $49.40.

Sources:

  • M2 PressWIRE, August 23, 2004
  • InvestSource, http://www.investsource.us
  • Smith Barney Citigroup, Wachovia Corporation (NYSE: WB) upgrade report
  • Wells Fargo Securities, Cree Incorporated (NASDAQ: CREE) initiation report
  • Jefferies & Co, Gap Incorporated (NYSE: GPS) downgrade report
  • First Albany, McDATA Corporation (NASDAQ: MCDTA) upgrade report

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