WESTON, Fla., May 27, 2004 (PRIMEZONE) -- Stocks started the day on an upnote Thursday, with both the Dow and the Nasdaq gapping up at the open. Concerns over the price of crude and trouble in Iraq continued to weigh on investors, stocks seemed set for the green. The Nasdaq Composite was up 10.28 points, to 1,986.43, while the Dow Jones industrial average was higher by 68.91 points, to 10,178.80.
Crude oil futures rose after the U.S.-appointed head of the Iraqi Governing Council, Ezzedine Salim, was killed last Monday near the U.S. headquarters in Baghdad. Also damaging investor confidence were Commerce Department figures showing the U.S. trade deficit widened by 9.1 percent to a record $46 billion, much higher than what analysts were expecting.
Stocks in the news include TIVO Inc. (Nasdaq:TIVO), whose Corporate Conference Call took place on May 25. TIVO reported 264,000 total net new subscriptions activated for 1Q05, three times the 79,000 recorded in 1Q04. For the quarter, Direct TV added 200,000 net new subscriptions. Overall 1Q05 net revenues were $34.5m, up 21% vs. $28.5m in 1Q04.
Advanced Communications Technologies Inc. (OTCBB:ADVC), which recently reported financial results for the third quarter of 2004 and updated its performance outlook for the full fiscal year ending June 30, 2004. The third quarter profit marks the second successive quarter of net earnings for the company.
Applied Micro Circuits Corp. (Nasdaq:AMCC) who announced that Brian Wilkie, former vice president and general manager of PowerPC business units at Motorola, has been appointed vice president and general manager of AMCC's Embedded Products group. AMCC also announced the creation of its Austin Design Center, which will play a key role in the company's overall PowerPC development and design.
And Conexant Systems, Inc. (Nasdaq:CNXT), the worldwide leader in semiconductor solutions for broadband communications, enterprise networks and the digital home, who announced that Chief Financial Officer Bob McMullan will present at the Smith Barney Citigroup Fifth Annual Semiconductor Conference on Wednesday, June 2, 2004.
The latest Federal Open Market Committee meeting was held on Tuesday, May 4, 2004, where the FOMC changed its tune somewhat, saying in its statement that "The Committee perceives the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal. Similarly, the risks to the goal of price stability have moved into balance. At this juncture, with inflation low and resource use slack, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured."
In plain terms, The Fed is saying that conditions have improved to the point that rates can start moving up from their current historically low levels, but will probably do so at a measured, and even pace . . . no 50 and 75 basis point hikes in the near future. The Fed also said it "continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity." Regardless, many analysts are saying the first rate increase may come as early as June.
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