Energy, Utility SPDRs Pull Ahead
The Energy SPDR rode the rally in
energy stocks Wednesday as crude and gasoline futures surged. The declines in
the tradable techs broadened.
The Energy SPDR
(
XLE |
Quote |
Chart |
News |
PowerRating) advanced
2.1%, the day’s biggest gain among the exchange-traded
funds. The October crude oil
(
CLV0 |
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Chart |
News |
PowerRating) notched a 10-year high, up
1.07 to 34.90 on the NYMEX. Unleaded gasoline
(
HUV0 |
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Chart |
News |
PowerRating) closed up .0309 higher
at .9980. For more on the day’s futures action, see Marc Dupee’s Futures
Market Recap.
Among the Energy Spider’s largest
components, Chevron
(
CHV |
Quote |
Chart |
News |
PowerRating) rose 2 9/16 to 88 1/2, Coastal
(
CGP |
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Chart |
News |
PowerRating) 2 7/16 to
71 1/2.
It was another good day for
rate-sensitive cyclical and financial stocks and their corresponding
exchange-traded funds. Financials also got a lift from a German news report that
Deutsche Bank AG, Germany’s biggest lending house, is negotiating an acquisition
of investment bank J.P. Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating).
The Dow Jones Financial iShares
(
IYF |
Quote |
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News |
PowerRating)
rose 1.2%, the Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) 0.8%, the Regional Bank HOLDR
(
RKH |
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Chart |
News |
PowerRating)
2.1%. Aided by more bottom fishing in retail stocks, the Cyclicals/Transportation
SPDR
(
XLY |
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Chart |
News |
PowerRating) picked up 1.5%. The Utilities SPDR
(
XLU |
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Chart |
News |
PowerRating), based on
dividend-paying stocks that react to the bond market, rose 1.3%.
On the downside, the Semiconductor
HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) tumbled 6.4%, extending Tuesday’s losses in the wake of bearish
analyst remarks on Intel
(
INTC |
Quote |
Chart |
News |
PowerRating). On Wednesday, it was the turn of Micron
Technology
(
MU |
Quote |
Chart |
News |
PowerRating) to suffer a hit from the analysts. Shares in the chipmaker
shed 8 1/2 to 70 on a Donaldson Lufkin & Jenrette analyst’s report
forecasting lower prices for the company’s memory chips.
The B2B and Internet HOLDRs
(
BHH |
Quote |
Chart |
News |
PowerRating),
which swam against the tech slide on Tuesday, fell in line Thursday with the
sinking techs, dropping 6.3% and 2.7%, respectively. The Biotech HOLDR
(
BBH |
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Chart |
News |
PowerRating)
lost 5.6%. The depth of the selling in biotechs contributed to a news
reversal in Generex Biotechnology
(
GNBT |
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Chart |
News |
PowerRating) shares.
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
declined 4.2%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 4.1%, the Nasdaq 100
Tracking Stock
(
QQQ |
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Chart |
News |
PowerRating) 3.9%, the Dow Jones Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 3.2%, the
Broadband HOLDR
(
BDH |
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Chart |
News |
PowerRating) 2.7%.
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