Here’s The First Dow Component To Report
Stocks rose
again Tuesday,
following several merger announcements. EMC
(
EMC |
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PowerRating)
is buying Legato Systems
(
LGTO |
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PowerRating), Arvinmeritor
(
ARM |
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buying Dana Corp.
(
DCN |
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PowerRating), and Yellow Corp.
(
YELL |
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PowerRating) is buying Roadway
(
ROAD |
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PowerRating).
Mergers are seen as a positive for the economy. Bonds were lower after earlier
gains. Meanwhile the dollar was again
higher.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) gained 6.30 at 9,223.09. The S&P 500
(
$SPX.X |
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PowerRating)
rose 3.42 at 1007.84 The Nasdaq
(
$COMPQ |
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PowerRating) rallied 25.75 at 1746.46.
The day’s leading sectors are
Internet
(
$INX.X |
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PowerRating), +4.40%, Retail
(
$RLX.X |
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PowerRating), +2.45%, and Broker Dealers
(
$XBD.X |
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News |
PowerRating), +2.90%.
Weak today are Gold & Silver
(
$XAU.X |
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PowerRating), -1.97%, Telecoms
(
$XTC.X |
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PowerRating), -0.54%,
Utilities
(
$NNA.X |
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PowerRating), -0.80%, and Oil
(
$OIX.X |
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PowerRating), -0.23%.
In economic news, Consumer
Credit for May will be released at 3:00 pm.
The 10-year U.S. Note
was -065 at 116 050.
The dollar was +0.29 at
96.19.
Gold was +.40 at
344.80.
Crude Oil was +.22 at
30.35.
Volume was
1,538,632,000
on the NYSE, and 2,022,456,000 on the Nasdaq.
Market breadth was positive, with NYSE
advancing issues over
declining issues by a ratio of 1.30, and up volume over down volume by a 1.49
ratio. Nasdaq advancing issues over declining issues at 1.90, and up volume over
down volume is at 3.62 ratio.
Top Dow stocks were:
General Motors
(
GM |
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PowerRating), +0.68 at
36.58, Home Depot
(
HD |
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Chart |
News |
PowerRating), +0.78 at 34.55, Walt Disney
(
DIS |
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Chart |
News |
PowerRating),
+0.02 at 20.60, United Technologies
(
UTX |
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Chart |
News |
PowerRating), +1.40 at 73.94, and
American Express
(
AXP |
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PowerRating), +0.65 at 44.22.
Stocks in the news:
After the close, Dow component
Alcoa
(
AA |
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PowerRating) reported a second quarter profit that beat estimates by
.03. Alcoa is the world’s largest aluminum producer and the first Dow stock to
report earnings.
Dana Corp.
(
DCN |
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Chart |
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PowerRating) was
higher after the company agreed to be acquired
by Arvinmeritor
(
ARM |
Quote |
Chart |
News |
PowerRating) in a $2.2 billion or $15 a share deal. Arvinmeritor
will also also Dana’s $2.2 billion in debt and minority interest. In addition,
Arvinmeritor expects the deal to significant to earnings in the first year
following the deal.
Broadcom
(
BRCM |
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PowerRating)
rose after Lehman Brothers upgraded the stock from “equal weight” to
“overweight”. Lehman based the upgrade on the belief that the company will
likely show an upside surprise in revenues and earnings this quarter.
CACI International
(
CAI |
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PowerRating)
rallied after the company raised its full year
guidance. The communications company now sees fiscal 2004 earnings between $1.77
to $1.82 a share compared to analysts’ estimates of $1.72 a share. The company
cited improvements in operating margin and higher projected government
spending.
Legato Systems
(
LGTO |
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PowerRating)
rose after the company agreed to be acquired by data
storage giant EMC Corp.
(
EMC |
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PowerRating) in a $1.3 billion stock deal. Legato
shareholders will receive 0.90 share of EMC stock for each share of Legato
stock.
Pacific Sunwear
(
PSUN |
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PowerRating)
traded higher after the company lifted its second-quarter
forecast. The apparel retailer now sees earnings of 23 cents a share up from its
previous forecast of 20 cents a share.
Roadway
(
ROAD |
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News |
PowerRating) is
traded sharply higher after the company agreed to be acquired by rival
Yellow Corp.
(
YELL |
Quote |
Chart |
News |
PowerRating) for $966 million in cash and stock. Yellow will also
assume $140 million Roadway debt. The combined company will be called
Yellow-Roadway Corp.