Will ADRs Outperform The US Market?
Stocks consolidated Friday’s
gains and were mixed for the day.
The lock-up period in Google ended
today–177 million shares (65% of the float) became available to sale. Some
Google employees own shares at 0.30. CIBC
upgraded the stock with a $245 price target. Larry Page and Sergey Brin are
retaining over 85% of their shares. The stock nose-dived at the open but closed
up on the day. CIBC raised its target on GOOG to $245.
Companies are flush with cash. As a matter of
fact, cash/debt ratios are at a 35-year high, and cash represents about 20% of
the S&P 500. What are companies doing with this cash? M&A is up 15% in the last
year and corporate dividends are on the rise; 62 of the S&P 500 companies have
raised their dividends this year.
With over 60% of the S&P 500 companies reporting,
the average report was 4.7% better; the historical average is 3.1% better.
Carly Fiorina, ousted from Hewlett Packard
just last week, may get up to $42 million in severance, stock and pension.
Lehman Brothers is bullish in Europe, as is
Citigroup, which is looking for 15-20% growth in the region. Foreign companies
can be traded in the US via American Depositary Receipts (ADRs).
Steel makers were stronger on the news that a
major South Korean steel maker is raising prices.
Verizon will buy MCI for $6.7 billion.
American Int’l Group
(
AIG |
Quote |
Chart |
News |
PowerRating) received new subpoenas from Eliot Spitzer
and the SEC; the company said it will cooperate.
Dow components reporting this week: KO and WMT on
Wednesday, and HPQ on Thursday. Tomorrow before the open, look for RIG and DE to
report.
Strong sectors were: Internet Commerce
(
$ECM.X |
Quote |
Chart |
News |
PowerRating)
+1.09% Computer Hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating) +1.08% Utilities
(
$UTY.X |
Quote |
Chart |
News |
PowerRating) +0.89%
Weak sectors were: Oil Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating)
-1.33% Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
-0.89% Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) -0.83%.
| Dow | -4.95 | 10,791.06 |
| Nasdaq | +6.19 | 2082.91 |
| S&P 500 | +0.87 | 1206.17 |
The dollar was -0.62 at
83.95
Crude Oil was -0.10 at
48
Gold was +2.00 to 424.20
1.68 billion on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing | 1754 | Up Vol 608 |
| Declining | 1548 | Down Vol 522 |
| 1.13 | 1.16 | |
| Nasdaq |
||
| Advancing | 1506 | Up Vol 952 |
| Declining | 1616 | Down Vol 518 |
| 1.07 | 1.83 |
Stocks in the News
Taser
(
TASR |
Quote |
Chart |
News |
PowerRating) received 4 orders worth $675,000.
Isis Pharmaceutical
(
ISIS |
Quote |
Chart |
News |
PowerRating) licensed its anti cancer drug to
Sarissa.
Leucadia
(
LUK |
Quote |
Chart |
News |
PowerRating) received a negative mention in Barron’s.
Network Appliance
(
NATAP |
Quote |
Chart |
News |
PowerRating) was upgraded at Friedman Billing
Ramsay.
Gateway
(
GTW |
Quote |
Chart |
News |
PowerRating) was upgraded at First Albany.
Goodrich
(
GR |
Quote |
Chart |
News |
PowerRating) got a positive mention in Barron’s.
Brice Wightman