Stocks quoted in this article:
Retailer Costco Wholesale (COST – 33-15/16) said early this morning that its first-quarter earnings totaled 28 cents per share, equaling analysts' estimates. Same-store sales for the three-month period showed a five-percent rise. COST officials sounded a slightly cautious tone, however, saying that sales for December would be flat compared to 1999 or up only slightly. Investors are taking COST's warning with a grain of salt, however, pushing the stock over four percent higher in mid-afternoon action.
COST has been one of the most perpetually range-bound shares in this equity market. Since mid-May, the shares have had a penchant for the horizontal, trending sideways between the 30 and 38 levels. The equity is presently hovering toward the middle of this range. This directionless movement has made moving-average trendlines virtually meaningless for the shares.