Here’s Something You Don’t Want To Overlook
Stocks
are nicely higher mid-day, as the market anticipates the announcement
of an economic stimulus package from President Bush tomorrow. Also helping
sentiment is bullish news from the telecom sector involving an ease in
restrictions from the FCC. Despite the buying binge, current fears over the
situation with Iraq have brought gold to a new six-year high.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is +1.60% at 8,739.20 The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
is +1.84% at 925.32. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is +2.05% at 1,415.56.
Leading to the upside are
telecoms
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), +4.98%, computer hardware
(
$GHA.X |
Quote |
Chart |
News |
PowerRating),
+4.76%, and semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), +4.66%.
The day’s laggards are
Internet
(
$GIN.X |
Quote |
Chart |
News |
PowerRating), -3.11% at 77.03, and oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating),
-2.20%, and gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) , -0.28%.
In economic news, ISM
Services came in at 54.7 vs. expectations of 55.8.
The 10-year U.S. Note
is -125 at 113 015.
The Dollar is -0.51 at
102.35.
Gold is +1.60 at 353.20.
Crude Oil is -0.65 atÂ
32.43.
Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 2.78, and up
volume over down volume by a 3.90 ratio. Nasdaq advancing issues over declining
issues are at 1.89, and up volume over down volume is at a 5.33 ratio.
Leading the Dow lower are:
SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating),
+8.45% at 31.32, JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), +6.40% at 27.60, Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating), +5.87% at 19.66, Allied Capital
(
ALD |
Quote |
Chart |
News |
PowerRating), +4.32% at 23.91,
Walt Disney
(
DIS |
Quote |
Chart |
News |
PowerRating), +3.57% at 17.98, Citgroup
(
C |
Quote |
Chart |
News |
PowerRating), +3.43% at
37.35.
Stocks in the news:
Telecom issues were lifted
after the Wall Street Journal announced that the FCC was to stop forcing
local phone companies rent their networks at cheap rates. SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), +8.44% at 31.32, and Verizon
(
VZ |
Quote |
Chart |
News |
PowerRating), +8.28% at 43.80.
Online services company
Hotels.com
(
ROOM |
Quote |
Chart |
News |
PowerRating), -26.18% at 43.58, has issued a revenue
warning for the fourth quarter as the company now expects to earn $270-$271
million vs. previous guidance of $283-$289 million. Lower in sympathy are
Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating), -10.21% at 63.62, and USA Interactive
(
USAI |
Quote |
Chart |
News |
PowerRating),
-12.26% at 21.25, the parent company of ROOM.
Deutsche Securities has turned
positive on select semiconductor stocks as it upgrades to “buy” from “hold”
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating), +5.70% at 32.99, Lam Research
(
LRCX |
Quote |
Chart |
News |
PowerRating),
+9.47% at 12.60, and Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), +5.62% at 15.34.
Salomon Smith Barney has taken
a swing at select biotech stocks as it downgrades to “underperform” from
“in-line” Medarex
(
MEDX |
Quote |
Chart |
News |
PowerRating), -6.92%, Biogen
(
BGEN |
Quote |
Chart |
News |
PowerRating), +0.41%,
and MedImmune
(
MEDI |
Quote |
Chart |
News |
PowerRating), +0.04%.
Personal services company
Pre-Paid Legal
(
PPD |
Quote |
Chart |
News |
PowerRating), -29.34% at 18.50, has announced its membership
rate for the fourth quarter fell 6% from a year ago, and that its president,
Wilburn Smith, has resigned.
Shipping company Federal
Express
(
FDX |
Quote |
Chart |
News |
PowerRating), +3.89% at 57.66, has been upgraded by CSFB to
“outperform” from “neutral.”
Business services company
Automatic Data Processing
(
ADP |
Quote |
Chart |
News |
PowerRating), +0.42% at 40.56, announced it will
acquire ProBusiness Services
(
PRBZ |
Quote |
Chart |
News |
PowerRating), +60.73% at 16.41, for about
$500 million in cash.
Communications giant AT&T
Corp.
(
T |
Quote |
Chart |
News |
PowerRating), +0.05% at 27.65, said it expects to take a $440 million charge
for the fourth quarter to cover job cuts and the reduced value of its DSL
business.
Tobacco Company Philip
Morris
(
MO |
Quote |
Chart |
News |
PowerRating), -1.83% at 39.07, sold off after Salomon Smith Barney analyst
Bonnie Herzog said she feels there is a good chance the company will announce a
drastic change in its pricing and marketing strategy.
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