More Bad News For This Blue Chip
Stocks are lower on economic growth concerns as well as caution ahead of
the Iraqi election this weekend.
The US economy grew at a 3.1% pace in Q4, the slowest since early 2003. For
the year, however, the economy grew at 4.4%, the fastest since 199’s 4.5%.
Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) reported 0.32 vs aÂ
0.33 consensus, missing by a penny. Revenues were $10.8 billion, above
estimates. The company guide din-line for next quarter.
Proctor & Gamble
(
PG |
Quote |
Chart |
News |
PowerRating) is buying Gillette
(
G |
Quote |
Chart |
News |
PowerRating) in a $57
billion stock swap–one of the largest deals of all time. The deal is expected
to bring in $150 million in fees to Goldman Sachs and Merrill Lynch.
Gilead
(
GILD |
Quote |
Chart |
News |
PowerRating) missed by 0.02; revenues were ahead of expectations.
A US court of appeals
ruled that Merck’s
(
MRK |
Quote |
Chart |
News |
PowerRating) Fosamax patent will be invalid as of 2008.
The stock is lower by 7%.
The NYSE is discussing the possibility of opening
an hour earlier. The NYSE board and the SEC must approve all changes.
The Iraq elections are on Sunday, and OPEC meets then as well. Next week,
look for the FOMC.
Strong sectors are: Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating)
+1.10%, Chemicals
(
CEX.X |
Quote |
Chart |
News |
PowerRating) +1.03%, Brokers
(
XBD.X |
Quote |
Chart |
News |
PowerRating)
+0.05%.
Weak are: Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating)
-1.50%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) -1.42% Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating) -1.27%.
| Dow | -65.39 | 10,402.01 |
| S&P 500 | -6.81 | 1167.74 |
| Nasdaq | -17.65 | 2029.50 |
The dollar is +0.09 at
83.52
Crude Oil is -1.59 at
47.25
Gold is -1.10 to 425.30
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 1260 | Up Vol 238 |
| Declining | 1865 | Down Vol 521 |
| 1.48 | 2.18 | |
| Nasdaq |
||
| Advancing | 1016 | Up Vol 350 |
| Declining | 1844 | Down Vol 682 |
| 1.81 | 1.94 |
Stocks in the News
Brice Wightman