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Market Update : 
Stocks Lack Direction
Author: Elena Todorova
123jump.com
Last Update: 1:22 PM EST January 25 2006


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Stocks traded in a lackluster fashion Wednesday morning, although oil declined and major companies generated optimism about earnings and merger deals. ConocoPhillips and Netflix posted sharply higher Q4 profits. Colgate-Palmolive and Amerada Hess released better-than-expected Q4 earnings. Bristol-Myers and Kerr-McGee also posted higher Q4 profits. Walt Disney agreed to acquire Pixar for $7.4 billion. Guidant accepted Boston Scientific''s higher offer of $27.2 billion.

 
Ameritrade Holding Corp, (AMTD: chart), online-brokerage operator, reported Q1 net income advanced 1.9% to 21 cents a share, up from 20 cents a share in the year-ago period on 5.8% higher revenue, missing analyst estimate by a penny.

Praxair Inc, (PX: chart), industrial gas company, reported that Q4 net income advanced 18.2% to 65 cents a share including a $6 million accounting charge. If not for the charge, earnings would have been 67 cents a share. Analysts were expecting earnings of 64 cents a share. Sales in Q4 increased 13% to $2.02 billion, driven by growth in the company''s oil and gas well service business and strong packaged-gases sales.

Xerox Corp, (XRX: chart), producer of copiers, reported Q4 profit of 27 cents a share, higher than last year’s profit of 24 cents a share in the comparable period fueled by sales of digital color copier supplies and services. If not for restructuring costs, Xerox earned 32 cents a share, meeting analysts'' expectations. Revenue shed 2 % but revenue from color products grew 17%.

CORPORATE NEWS

After the closing bell Tuesday, Disney (DIS: chart) agreed to acquire computer animation studio Pixar (PIXR: chart) in an all-stock transaction at the value of $7.4 billion. Under the deal, 2.3 Disney shares would be issued for each Pixar share. The transaction is expected to be completed in the summer.

Guidant Corp. (GDT: chart), medical device maker terminated its merger agreement with Johnson & Johnson (JNJ: chart) in favor of Boston Scientific''s (BSX: chart) higher offer of $27.2 billion.
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