Can Technology Pick Up Where Manufacturing Left Off?
Stocks
are down sharply this midday on the heels of negative economic data.
Despite positive earnings news coming form the likes of Adobe
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Expedia
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USAI |
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CB |
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The major indices had a rough
time from the get-go as the initial jobless claims and productivity numbers came
in worse than expected. However, the indices really sold off after the release
of the ISM Manufacturing index, which revealed that the level of manufacturing
activity fell to the lowest level since October of 2001. The index also fell for
a second straight month.Â
Nasdaq issues are having a
better day than their blue-chip counterparts following positive earnings results
from the software sector. The major indices are now consolidating off their
lows. More economic data including nonfarm payrolls and the unemployment report
will be out tomorrow.Â
The Dow Jones Industrial
Average
(
$INDU.X |
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(
$SPX.X |
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is -0.93% at 902.83. The Nasdaq
(
$COMPQ |
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PowerRating) is -0.36% at 1,451.32.
The day’s leaders are in
gold and silver
(
$XAU.X |
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PowerRating), +3.61%, Internet
(
$GIN.X |
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+1.29%, and REITs
(
$DJR.X |
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Weak today are paper
(
$FPP.X |
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-2.65%, retail
(
$RLX.X |
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(
$CEX.X |
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-1.76%.
In economic news, April Auto
Sales came in at 5.9M vs. estimates 6.0M. April Truck Sales came in
at 7.3M vs. estimates 7.4M. Initial jobless claims came in at 448K
vs. estimates 432K. Productivity for Q1 came in at 1.6% vs. estimates
2.0%. Construction Spending for March fell 1% versus expectations for a
gain of 0.2%. And finally, the ISM Manufacturing Index for April came in
at 45.4 vs. estimates of 47.0
The 10-year U.S. Note
is +105 at 115 145.
The dollar is -0.63 at
96.75.
Gold is + 3.10 at 342.70
Crude Oil +0.36 at 26.16
Volume is at631,000,000
on the NYSE, and at 693,000,000 on the Nasdaq.
Market breadth is negative,
with NYSE advancing issues over declining issues by a ratio of 1.41, and down
volume over up volume by a 2.75 ratio. Nasdaq declining issues over advancing
issues are at 1.33, and down volume over up volume is at a 1.33 ratio.
Top Dow stocks are:
Hewlett Packard
(
HPQ |
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16.39, ExxonMobil
(
XOM |
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PowerRating), +0.17% at 35.26, IBM
(
IBM |
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PowerRating),
+0.16% at 85, and Intel
(
INTC |
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PowerRating) +0.10% at 18.39.Â
Stocks in the news:
Chip material maker Applied
Materials
(
AMAT |
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PowerRating) appointed Michael R. Splinter, formerly of Intel, to
president and Cheif Executive Officer. Â
Adobe SystemsÂ
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ADBE |
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raised expectations on their second quarter results. The company stronger than
expected demand for their Adobe Acrobat software.Â
Macromedia
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reported fourth quarter results that beat estimates by a penny. The company also
reported a 10% jump in sales.Â
The world’s largest
retailer, Wal-Mart
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PowerRating) are expecting same store sales in April to come
in near the low end of estimates. Â