Here’s Why Money Is Leaving This Sector
With tech leading, stocks are on the retreat.
The REIT sector continued yesterday’s downtrend as a result of fears of interest
rate hikes. The world’s largest cell phone maker Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) guided
the Street lower and now expects to earn 21 cents for the next quarter. Sales
fell 2% vs. a previous forecast of a 5% increase.
Kelloggs
(
K |
Quote |
Chart |
News |
PowerRating) said its
first-quarter profits will be 30% higher as a result of strong sales growth and
better currency exchange. It now forecasts earnings of 52 cents a share.
Midway Games
(
MWY |
Quote |
Chart |
News |
PowerRating) rose after the company said it expects higher revenue
of $18 million for the quarter, and a smaller loss than initially anticipated on
stronger-than-expected sales of The Suffering video game.
| Dow | -44.30 |
10513.20 |
| S&P 500 |
-7.58 | 1143.35 |
| Nasdaq | -25.50 |
2053.63 |
The day’s leading sectors are
Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) +1.29%, Transport
(
$TRANX |
Quote |
Chart |
News |
PowerRating) +0.89%
Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +0.83%, and Gold and Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating)
+0.80%
Weak today are REITs
(
DJR.X |
Quote |
Chart |
News |
PowerRating)
-4.37%, and Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) -2.81%,
No Economic news releases
today.
10-year Notes are +115
at 112 245
The dollar
is -0.55 at 89.03
Gold is +3.60 at 419.00
Crude Oil is +0.01 at
33.87
Volume is 660,000,000 on
the NYSE, and 905,000,000 on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing |
1033 | Up Vol 185 |
| Declining | 2114 | Down Vol 456 |
| Ratio | 2.10 | 2.50 |
| Nasdaq |
||
| Advancing |
852 | Up Vol 256 |
| Declining |
2123 | Down Vol 612 |
| Ratio | 2.49 | 2.44 |
Top Dow stocks are:
Kodak
(
EK |
Quote |
Chart |
News |
PowerRating), +0.95% at
25.44, Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating) +0.75% at 83.01, Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating),
+0.64% at 36.13 and Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating), +0.37% at 50.77.
Stocks in the news:
Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) was downgraded to
underweight by JP Morgan due to its relationship with Nokia and the high level
of estimates given.
Omnicell
(
OMCL |
Quote |
Chart |
News |
PowerRating) will miss previous first-quarter
earnings forecasts and now expects to earn 7 cents on sales of $27.5 million.
Tupperware
(
TUP |
Quote |
Chart |
News |
PowerRating) raised its first-quarter earnings
outlook on reduced costs. It now expects to earn 22 cents with sales rising to
high single-digit levels.
Brice Wightman
bricew@tradingmarkets.com