3 Days, 300 Points, Plus, FDA Approval After The Close
Stocks rallied on tame inflation data and lower
crude oil. The major indices are traded to five-week highs. The Dow
made it 300+ points in three days. It was the best 3-day move since the November
elections. The Nasdaq traded at its best
levels since mid-March. Year to date, the Dow is off 2.9% and the Nasdaq is off
6.7%. Oil sank to its lowest levels since February.
The CPI for April was 0.5%; ex-food/energy, unchanged.
Year over year, it rose 2.2%, a little less than expectations. Crude inventories
rose 4.3 million barrels, much more than expected, and the highest level since
March 1999. Gas inventories also rose more than expected, +1.1 million barrels.
After the bell, Teva Pharmaceutical’s
(
TEVA |
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PowerRating) generic version of
Biaxin was granted final approval by the FDA. Men’s Wearhouse
(
MW |
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PowerRating)
beat by 0.16, guided higher and announced a 3:2 stock split.Â
Hewlett Packard
(HPQ)
beat by a penny and revenues ($21.6 billion) also beat slightly. The company
lowered Q3 guidance.
Abercrombie & Fitch (ANF)
beat by 0.03. Q1 profit rose 38%.
Applied Materials
(
AMAT |
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PowerRating) beat by a penny but said orders were
down and lowered Q3. Profits fell 18% and new orders for the three months ending
May 1 fell 30%. CIBC downgraded the stock.
Yahoo
(
YHOO |
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News |
PowerRating) unveiled a modified instant messaging service which
allows free worldwide PC-to-PC calls without a phone.
Merrill Lynch upgraded technology to marketweight from underweight.
Pimco’s Bill Gross sees 10-year rates between 3 – 4.5% over the next
five years.
Federal Reserve Board Governor Ed Gramlich is resigning effective
August 31. Greenspan is planning to leave in January.
Strong sectors were: Â AirlinesÂ
(
$XAL.X |
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Chart |
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PowerRating) +5.56%Â
Homebuilders
(
$HGX.X |
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Chart |
News |
PowerRating) +3.45%Â Â ChemicalsÂ
(
$CEX.X |
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Chart |
News |
PowerRating)
+2.50%Â Â
Weak sectors were:Â Â Oil Services Â
(
$OSX.X |
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Chart |
News |
PowerRating)
-0.66%Â Â Insurance
(
$IUX.X |
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Chart |
News |
PowerRating) -0.31% Â Â Â
Dow | +131.85 | 10,463.71 |
Nasdaq | +26.50 | 2030.65 |
S&P 500 | +11.73 | 1185.53 |
The dollar was -0.38 at
85.83
Crude Oil was -1.54 at
49.13
Gold was +2.20 at 421.10
ce=”Arial” size=”2″ face=”Arial”>Volume was 1.77 billion on the NYSE and
1.98 billion on the Nasdaq.
Market breadth was positive.
NYSE | Issues | |
Advancing | 2533 | Up Vol 1728 |
Declining | 786 | Down Vol 386 |
3.22 | 4.47 | |
Nasdaq |
||
Advancing | 2234 | Up Vol 1506 |
Declining | 859 | Down Vol 407 |
2.60 | 3.70 |
Stocks in the News
Nordstrom
(
JWN |
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PowerRating) beat and raised its 2005 view. Q1 profit rose 52%.
Intel
(
INTC |
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PowerRating) holds its annual meeting today.
Boise Cascade slashed the price of its IPO and now sees $17-$19, down
from $24-$26.
Yum Brands’
(
YUM |
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PowerRating) same store sales rose 4%–analysts were
expecting between 2-4%.
Honeywell
(
HON |
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PowerRating) said all of its business are on track.
Ross Stores
(
ROST |
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Chart |
News |
PowerRating) beat by 0.03.
Brice Wightman
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