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CNNfn market movers
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March 16, 1999: 11:36 a.m. ET
Warnings drive MicroTouch, Homestead lower in the shadow of Dow 10,000
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NEW YORK (CNNfn) - Beyond the furtive blue-chip glow of the Dow industrials, Tuesday was just another day for the broader U.S. stock market, driven by the capitalist engine of profit.
Among the stocks punished for missing the earnings mark, MicroTouch (MTSI) shares fell 2-5/8 to 13-1/2 after the maker of computer touch-access screens said an unfavorable verdict in an employee-hiring suit would cost it more than $2.6 million, causing current-quarter profits to fall short of forecasts. The company noted that the case remains under appeal.
Likewise, Homestead Village (HSD) slid 7/16 to 3-1/4 after the company blamed lower-than-expected residency rates at its Texas and Raleigh, N.C., properties for projections of disappointing earnings ahead.
Even AMR (AMR), holding company for major air carrier American Airlines, suffered thanks to its confirmation that last month's labor dispute hurt the company's bottom line. Shares slid 15/16 to 60-13/16.
Machinist Atchison Casting (FDY) lost 5/16 to 8-5/16 on the back of its own warning, this one due to customer ordering delays and "continued weakness which has been evident in the agriculture, energy, mining, and steel sectors since last summer."
Not even estimate-meeting profits were safe from Wall Street's punishing hand, as electronics firm Solectron (SLR) learned. Shares slid 3/4 to 45-1/4 even though the company overnight reported earnings exactly in line with what analysts had expected.
Looking to the bright side
Despite the shadows cast by gathering downward profit expectations, the prophecy game cut both ways, as some stocks were rewarded for boasting that current-quarter performance will be even better than the Street had predicted.
Carpet seller Maxim Group (MXG) gave shareholders an overnight buzz after it admitted Monday afternoon that its fiscal fourth-quarter earnings will pleasantly surprise the market when they are officially released April 5. However, investors saw the news as already priced into shares, sending the stock up only 1/8 to 12-3/4.
Investors also found car lessor Ugly Duckling (UGLY) living up to its fairy-tale heritage, soaring 5/16 to 6-1/2 after the company displayed surprising appeal by saying it will break even when analysts had looked forward to a substantial loss.
Medical-equipment maker Sabratek (SBTK) actually climbed 1-3/8 to 16-3/4 despite the company's seemingly disappointing fourth quarter, which fell short of estimates by 2 cents per share. 
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