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
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generic version of
Biaxin was granted final approval by the FDA. Men’s Wearhouse
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beat by 0.16, guided higher and announced a 3:2 stock split. 

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
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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
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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:  Airlines 
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+5.56% 
Homebuilders

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+3.45%   Chemicals 
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+2.50%  

Weak sectors were:   Oil Services  
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-0.66%   Insurance
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-0.31%    

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
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beat and raised its 2005 view. Q1 profit rose 52%.

Intel
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holds its annual meeting today.

Boise Cascade slashed the price of its IPO and now sees $17-$19, down
from $24-$26.

Yum Brands’
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same store sales rose 4%–analysts were
expecting between 2-4%.

Honeywell
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said all of its business are on track.

Ross Stores
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beat by 0.03.

Brice Wightman

 

 

 

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