Here’s What The Judge Gave Sam Waksal
Stocks
were higher Tuesday. Despite Nokia’s warning of lower hand-set sales
and a downgrade of the semiconductor issues, the major indices staged a
decent rally, thanks to upgrades in Boeing
(
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PowerRating) and positive
comments on Mcdonalds
(
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However biotechs, Internets, and semis are missing in action. Stocks also got a
boost after a survey by Blue Chip Economic Indicators which forecast growth of
3.5% in the third quarter and 3.7% in the fourth quarter. Bonds are up
strongly today while gold is slumping. Former Imclone CEO Sam Waksal was
sentenced to seven years in prison for insider trading.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) gained 74.61 at 9055.31. The S&P 500
(
$SPX.X |
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rose 8.87 at 984.83. The Nasdaq
(
$COMPQ |
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PowerRating) rallied 23.70 at 1627.67.
The day’s leading sectors were
Computer Hardware
(
$HWI.X |
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PowerRating), +2.16%, Software
(
$GSO.X |
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PowerRating),
+1.84%, Brokers
(
$XBD.X |
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PowerRating),
+1.65%, and Computer Technology
(
$XCI.X |
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PowerRating), +1.58%.
Weak today was Gold & Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), down 1.40%.
In economic news, Bank of
Tokyo/Mitsubishi/UBS index of chain-store sales declined 0.3%.
The 10-year U.S. Note
was +215 at 120 105.
The dollar was +0.24 at
93.62.
Gold was -9.60 at 352.80.
Crude Oil +0.02 at
31.75.
Volume was
1,255,138,000
on the NYSE, and at 1,749,594,000 on the Nasdaq.
Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 2.16, and up
volume over down volume by a 2.22 ratio. Nasdaq advancing issues over declining
issues at 1.66, and up volume over down volume is at a 2.65 ratio.
Top Dow stocks were:
Boeing
(
BA |
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PowerRating), +1.14 at 34.31,
Microsoft
(
MSFT |
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PowerRating) +0.93 at 24.68, Mcdonalds
(
MCD |
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News |
PowerRating) +0.80 at
21.67, Altria Group
(
MO |
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PowerRating) +0.75 at 43.80, and United Technologies
(
UTX |
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PowerRating)
+1.46 at 70.70.
Stocks in the news:
Boeing
(
BA |
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PowerRating) rose after Banc of America Securities upgraded the stock from “neutral” to
“buy.” B of A upgraded the Dow component based on the belief of increased
production in 2004. The firm also raised their target price from $28 to $45.
Countrywide Financial
(
CFC |
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PowerRating)
was higher after the company report some very positive highlights
from operations. First, the company’s loan pipeline closed at a record $74
billion on May 31st, up $15 billion from March 31st. Loan fundings drew near $40
billion. And average daily applications reached an all-time high of $3.2
billion, up 40% from last month.
NBTY
(
NBTY |
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PowerRating) rose on heavy volume. The company announced that it will buy
nutritional supplement maker Rexall Sundown from Royal Numico N.V. from $250
million cash.
Penn National Gaming
(
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rose on heavy volume. The company raised its second quarter
estimates to 38 cents a share from 33 cents a share. However Penn lowered its
full-year estimates to $1.32 a share from $1.34 due to higher taxes.
Online DVD rental company
Netflix
(
NFLX |
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PowerRating) was fractionally lower on heavy volume. Late yesterday,
the company announced that it expected to report a first ever profit of $3
million to $4 million. However both Wal-Mart
(
WMT |
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PowerRating) and Blockbuster
(
BBI |
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announced that they would also roll out a DVD rental service for a flat monthly
fee.
Nokia
(
NOK |
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PowerRating) was
lower after lowering its forecast. Nokia expected sales of hand sets to come in at the low end of
estimates. However the company expects second-quarter results to meet guidance
of 13 – 16 Euros. The company blamed SARS, the weak economy, and the weak
dollar.