Big IPO Pricing Tomorrow…10X Oversubscribed
Stocks were higher Tuesday,
helped by strong insurance stocks.
Market internals were strong,
as even beaten-up airlines, healthcare and financials rallied. The Nasdaq
bounced off 50-day EMA just after the open.
Insurance stocks rose after AIG said they wanted a
"prompt resolution of outstanding issues” with the SEC and DOJ. Marsh &
McLennan
(
MMC |
Quote |
Chart |
News |
PowerRating) is higher after Eliot Spitzer said he would not pursue
criminal charges after the company replaced the CEO and said it would implement
reforms.
Consumer confidence fell for the third straight month to 92.8 in October
from a revised 96.7; analysts were expecting 94.
IPO Shopping.com
(
SHOP |
Quote |
Chart |
News |
PowerRating) was priced at $18 and traded up 60%,closing
at 28.80. The company originally filed its IPO in March 2000 when it was called
Dealtime.com. 38% of its online sales in 2003 came from Google.
The Dreamworks IPO will be priced tomorrow; analysts feel it will come
above the $23-$25 range; best guess: $26-$27. The issue is 10 times
oversubscribed. 25 million shares will be sold; 4 million from insiders.
Morgan Stanley lowered its rating on Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) to
‘underweight’ from equalweight.’
As of the close yesterday, Google’s
(
GOOG |
Quote |
Chart |
News |
PowerRating) market cap–at $50 billion–topped Yahoo’s.
| Dow | +138.49 | 9888.48 |
| S&P 500 | +16.28 | 1111.08 |
| Nasdaq | +14.75 | 1928.79 |
Strong sectors were: Healthcare Providers
(
HMO.X |
Quote |
Chart |
News |
PowerRating)
+5.05%, Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) +4.36%, Insurance
(
IUX.X |
Quote |
Chart |
News |
PowerRating) +5.31%.
Weak sectors were: Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -0.31%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) -0.27%.
The dollar was +0.22 at
85.13
Gold was -1.90 at 426.20
Crude Oil was +0.68 at 55.22
1.79 billion on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing | 2300 | Up Vol 1187 |
| Declining | 981 | Down Vol 291 |
| Ratio | 2.34 | 4.07 |
| Nasdaq |
||
| Advancing | 1801 | Up Vol 1011 |
| Declining | 1274 | Down Vol 675 |
| Ratio | 1.41 | 1.49 |
Stocks in the News
EDS delayed their earnings release and will report November 3.
Kellogg
(
K |
Quote |
Chart |
News |
PowerRating) beat by 0.04 and raised estimates.
Ryder
(
R |
Quote |
Chart |
News |
PowerRating) beat by 0.04.
US Steel
(
X |
Quote |
Chart |
News |
PowerRating) 2.72 vs 2.06 estimate; revenue 3.7 billion vs 3.5 billion
estimate.
Aon Corp.
(
AON |
Quote |
Chart |
News |
PowerRating) is the latest company to be investigated by Eliot
Spitzer.
Dupont
(
DD |
Quote |
Chart |
News |
PowerRating) beat by a penny.
International Paper
(
IP |
Quote |
Chart |
News |
PowerRating) missed by 0.03; sales were in-line.
Lockheed Martin
(
LMT |
Quote |
Chart |
News |
PowerRating) beat by .04; quarterly profit rose 41%.
Sara Lee
(
SLE |
Quote |
Chart |
News |
PowerRating) beat by 0.02, in part due to a sale of a tobacco
unit.
Halliburton
(
HAL |
Quote |
Chart |
News |
PowerRating) fell to a Q3 loss on an asbestos settlement.
Wellpoint
(
WLP |
Quote |
Chart |
News |
PowerRating) reported 1.97, beating by 0.06.
Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating)
beat and raised guidance.
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) beat by 0.02 and guided Q3
lower.
Silicon Labs
(
SLAB |
Quote |
Chart |
News |
PowerRating) Q3 profit rose 50% but the company guided Q4
lower.
Flextronics
(
FLEX |
Quote |
Chart |
News |
PowerRating) was in-line at
0.17; revenues were slightly lower than expected; the company warned for Q4.
Brice Wightman