OPEC Meeting Tomorrow — Will They Increase Production?
Stocks
are higher on light volume with the Semis getting a lift on a
better-than-expected book-to-bill ratio. The dollar hit a two-week
low against the Euro and the yen after comments from the Fed hinted at a gradual
pace in the increase of interest rates.
Oil prices traded south of the $40 mark after Saudi Arabia proposed a 2 million
barrel per day increase in output. OPEC, who said they have lost control
of prices, meets informally tomorrow in Amsterdam. The next official meeting is
June 3 in Beirut. Even if OPEC agreed to significantly increase production,
lower prices would take some time to work through the system.
Microsoft
(
MSFT |
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PowerRating) and Oracle
(
ORCL |
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PowerRating) agreed to a software
development pact to work together on Oracle’s databases. Legg Mason initiated
coverage on gaming stocks. Harrah’s Entertainment
(
HET |
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Chart |
News |
PowerRating), Caesars
Entertainment
(
CZR |
Quote |
Chart |
News |
PowerRating), Mandalay Resort Group
(
MBG |
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News |
PowerRating) and others
were given Buy ratings.
Marvel Technology
(
MRVL |
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News |
PowerRating)
rose after reporting first-quarter earnings of $14.5 million, with revenue up
60% to $169.6 million. Retailer Nordstrom
(
JWN |
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News |
PowerRating) reported earnings
that rose 153% on strong sales and better inventory management technology.
Same-store sales was up 13.2%, well ahead of the company’s own 5% forecast.
The average price for a gallon
of regular gas hit another record at $2.03, 53 cents over a year ago. The
highest price — inflation adjusted in 2004 dollars — was $2.99 in March 1981.
| Dow | +82.97 | 10021.61 |
| S&P 500 | +8.26 | 1097.56 |
| Nasdaq | +17.00 | 1913.45 |
Strong today are Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) +2.70%, Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +2.33%, Gold and
Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating) +2.28%, Chemicals
(
CEX.X |
Quote |
Chart |
News |
PowerRating) +1.91%.
Weak today are Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) -0.77%, Energy
(
DXE.X |
Quote |
Chart |
News |
PowerRating) -0.24%.
No Economic news releases
today.
10-year Notes are -60 at
109 025
The dollar
is -0.50 at 90.65
Gold is +6.20 at 384.70
Crude Oil is -1.10 at
397.10
Volume is 566,000
million on the NYSE, and 676,000 million on the Nasdaq.
Market breadth is positive.
| NYSE | Issues | |
| Advancing | 2322 | Up Vol 442 |
| Declining | 805 | Down Vol 108 |
| Ratio | 2.88 | 4.39 |
| Nasdaq |
||
| Advancing | 1890 | Up Vol 508 |
| Declining | 1029 | Down Vol 145 |
| Ratio | 1.83 | 3.50 |
Top Dow stocks are:
Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating), +2.09% at
29.93, Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating), +1.74% at 34.60, Du Pont
(
DD |
Quote |
Chart |
News |
PowerRating) +1.70%
at 42.56 3M
(
MMM |
Quote |
Chart |
News |
PowerRating), +1.45% at 83.36.
Stocks in the news:
Union workers at SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating) launched
a 4-day strike across thirteen states for better healthcare and job security.
Serena Software
(
SRNA |
Quote |
Chart |
News |
PowerRating) reported a
profit of 24 cents before one-time charges, 4 cents ahead of Wall Street
consensus. Revenue rose 38% to $33.7 million with software license sales up 46%
from a year ago.
Retailer Wet Seal
(
WTSLA |
Quote |
Chart |
News |
PowerRating) was lower after
reporting a net-loss of $20.3 million on sales from continuing operations of
$99.8 million with same store sales that fell 17%
Brice Wightman
bricew@tradingmarkets.com