So that's why the Yahoo (YHOO) insiders have been selling. After the bell internet giant Yahoo said fourth-quarter profits doubled, but missed analystç´ forecasts by a penny.
In after market trading, Yahoo is trading down $5.36 or 13%. Whenever a stock is priced for perfection, this is what usually happens.
Amazingly, shares of Google (GOOG) are also trading down $16.61 in sympathy with Yahoos miss. Google is currently priced at $450.50 in the after market.
Also after the close, tech bellwether, Intel (INTC) fell $2.42 to $23.10 after missing revenue estimates by $360 million, as earnings came in at .40 cents for the quarter, versus analystç´ estimates of .43 cents.
I am of the opinion that earnings estimates will continue to come down in 2006. Higher energy prices, raw material prices, and healthcare costs are beginning to take their toll. The next shoe to drop will undoubtedly be real estate.
For the day, the DJIA finished down 63.55 to 10896.32. Selling pressure was steady as rising price of oil took its toll on the market. Oil prices closed at $66 per barrel due to news about Iran's nuclear concerns, and unsettling in Nigeria.
In reality, we keep hearing the same excuses over and over again when it pertains to oil. I'm convinced that Janet Jackson could put on a repeat performance in this years super bowl, and the oil manipulators will look for an excuse to make prices rise.
DJIA: 10896.32, down 63.55
S&P 500: 1282.93, down 4.68
NASDAQ Composite: 2302.70, down 14.40
As a heads up, i am beginning to get interested in Boston Scientific (BSX) again. It is do or do time for BSX. If they get the ok to buy Guidant, the company will do well. If they don't, they will probably merge with a major drug or device maker. Stay tuned, this could get interesting.
