Warren Buffet’s Newest Investment…
Stocks
are mixed on disappointing housing numbers. The
largest share dealer on the NYSE, LaBranche & Co
(
LAB.N |
Quote |
Chart |
News |
PowerRating), has
settled investigations into possible floor-trading abuses and will pay a fine of
$63.5 million for violations over the last 10 years. Metro-Goldwyn-Mayer
(
MGM |
Quote |
Chart |
News |
PowerRating) reported higher fourth-quarter earnings of $60.3, with strong DVD
sales. Revenue fell to $543.1 million.
Warren Buffett has decided to
invest in Cadbury Schweppes
(
CSG |
Quote |
Chart |
News |
PowerRating) after the confectioner reported
lower earnings. Revenue rose to $12.3 billion with net profit at $699 million. Buffett
will invest $73.3 million for a 0.5% stake in the company, making him one of the
top 10 institutional investors in CSG.
| Dow | +2.26 | 10717.33 |
| S&P 500 |
+0.06 | 1156.95 |
| Nasdaq | +7.69 | 2088.95 |
The day’s leading sectors are
Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating) +1.89%, Biotechs
(
BTK.X |
Quote |
Chart |
News |
PowerRating) +1.43%,
Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +0.97%, and Disk Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) +0.84%.
Weak today are Amex Gold
Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) -2.79%, and Gold and Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -2.41%,
Economic news releases included
lower housing starts at 1.903 million and 1.899 million building permits.
10-year Notes are +80 at
115 015
The dollar
is -0.58 at 85.35
Gold is -2.60 at 413.90
Crude Oil is +0.28 at
35.07
The euro
is +1.05 at 128.27
Volume is 620,000,000 on
the NYSE, and 860,000,000 on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 1493 | Up Vol 270 |
| Declining | 1618 | Down Vol 325 |
| Ratio | 1.21 | 1.19 |
| Nasdaq | ||
| Advancing | 1423 | Up Vol 442 |
| Declining | 1605 | Dow Vol 393 |
| Ratio | 1.18 | 1.13 |
Top Dow stocks are:
United Tech [UTX|UTX],
+1.82% at 96.95, Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating), +1.02% at 23.68, Du Pont
[DD|DD] +0.94% at
45.46, and Boeing [BA|BA],
+0.72% at 44.91.
Stocks in the news:
Drug manufacturer Biogen Idec
(
BIIB |
Quote |
Chart |
News |
PowerRating)
and Elan
(
ELN |
Quote |
Chart |
News |
PowerRating) soared 16% and 24%, respectively, on plans to apply in
mid-2004 for US clearance to market Antegren, for the treatment of multiple
sclerosis. The companies’ initial clinical testing has enjoyed success.
CS First Boston downgraded BellSouth
(
BLS |
Quote |
Chart |
News |
PowerRating) and SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), joint owners of wireless
provider Cingular, to “neutral.” Until it is completed, the investment company
expects the AT&T Wireless
(
AWE |
Quote |
Chart |
News |
PowerRating) deal to drag down share prices, with
no significant savings until 2006.
Covad Communications
(
COVD |
Quote |
Chart |
News |
PowerRating)
reported a fourth-quarter net loss of $12.8 million on revenue of $105
million. For the next quarter, the company expects a loss of $15 million on
revenue of $108 million.