Here’s What Makes This Quarter Memorable
Stocks
were almost unchanged Monday, down a fraction. A worse-than-expected Chicago PMI report
created morning volatility, but the quarter ended as one of the best in over
four years, with the S&P gaining 15%. The Semiconductor Industry Association said that global
chip sales rose for the third straight month and noted that its forecast for
10.1% growth is still on track, as geopolitical woes and worries over SARS are
subsiding. Wal-Mart affirmed its
June sales forecast of 2% to 4%. Bonds were higher, and the Dollar closed lower
after its recent run.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) slid 3.61 at 8,985.44 The S&P 500
(
$SPX.X |
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fell 1.80 at 974.42. The Nasdaq
(
$COMPQ |
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PowerRating) was lower by 2.89 at
1622.36.
The day’s leading sectors were
Gold & Silver
(
$XAU.X |
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PowerRating), +2.01%, Computer Hardware
(
$HWI.X |
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Chart |
News |
PowerRating),
+0.49%, Retail
(
$RLX.X |
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Chart |
News |
PowerRating), +0.95%, and Healthcare
(
$HMO.X |
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Chart |
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PowerRating), +0.16%.
Weak today were Homebuilders
(
$HGX.X |
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Chart |
News |
PowerRating), -1.26, Airlines
(
$XAL.X |
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News |
PowerRating), -0.67%, Biotech
(
$BTK.X |
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PowerRating), -1.48%, Paper
(
$FPP.X |
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PowerRating), -0.56%, and
Insurance
(
$IUX.X |
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PowerRating), -1.05%.
In economic news, the
Chicago Purchasing Managers Index for June came in at a reading of 52.5, a
tad below estimates of 53.0. This was the second consecutive advance for the
index.
The 10-year U.S. Note
was +120 at 117 14.
The dollar was -0.38 at
95.11.
Gold was + 3.00 at
346.30.
Crude Oil -0.05 at
30.14.
Volume was
1,590,403,000
on the NYSE, and at 1,721,786,000 on the Nasdaq.
Market breadth was mixed, with NYSE
advancing issues over
advancing issues by a ratio of 1.08, and up volume over down volume by a 1.02
ratio. Nasdaq declining issues over advancing issues at 1.04, and up volume over
down volume is at a 1.09 ratio.
Top Dow stocks were:
Walt Disney
(
DIS |
Quote |
Chart |
News |
PowerRating), +0.41 at
19.75, Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating), +0.65 at 33.12, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
+0.20 at 20.77, Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating), +0.41 at 21.30, and Altria
Group
(
MO |
Quote |
Chart |
News |
PowerRating), +0.34 at 45.44.
Stocks in the news:
Cendant
(
CD |
Quote |
Chart |
News |
PowerRating) traded
higher after the travel and real estate company reaffirmed its
second-quarter forecast and declared a quarterly dividend. The company said that
it planned to meet or beat analysts’ estimates of 35 cents a share in the second
quarter. Cendant also declared an annual dividend of 28 cents a share or 7 cent
each quarter.
DaimlerChrysler
(
DCX |
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News |
PowerRating)
was higher after announcing a plan to restructure its trucks business. DaimlerChrysler, whose line of trucks includes Mercedes-Benz, Freightliner,
Sterling, and Western star, will consolidate its truck operation under one
management.
Odyssey Healthcare
(
ODSY |
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PowerRating)
gained after it was announced that the company will be added to the
S&P Midcap 400 Index. Odyssey will replace First Virginia Bank
(
FVB |
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PowerRating) after
the close of trading on July 1, 2003.
RealNetworks
(
RNWK |
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PowerRating)
rose after the company announced that it was chosen
by Vodafone
(
VOD |
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Chart |
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PowerRating) to provide audio and video services over cell phones.
Goodyear Tire
(
GT |
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PowerRating)
traded lower on heavy volume. This past weekend, the company broke off
talks with the United Steelworkers of America. Goodyear had been asking for wage
and benefit concessions. The union is prepared to strike if necessary.
Seagate Technlogy
(
STX |
Quote |
Chart |
News |
PowerRating)
fell despite lifting its fourth-quarter forecast. The hard-drive
maker now sees revenues between $1.53 and $1.56 billion and earnings between 30
to 33 cents a share. Analysts had been expecting revenues of $1.54 billion and
profits of 28 cents a share.
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) rose after Smith Barney upgraded the semiconductor giant to
“outperform” from “in line” Smith Barney based the upgrade on the belief that
the company will continue to outperform expectations.
As always, please send me your
comments or questions.
Vincent Mao