Spending Our Way Out Of Recession?
Consumer optimism rose to a
four-month high this month, a sign Americans are putting the first shocks of
Sept. 11 behind them and may help spend the U.S. out of recession.
The University of Michigan’s
final index for December jumped to 88.8 from 83.9 in November, sources said. The
preliminary December figure, out earlier this month, was 85.8. The revision
exceeded analysts’ expectations.
A rebound in stocks, low oil
prices, fewer job cuts and U.S. military success in Afghanistan are helping
counter worries about rising unemployment. That helps explain why Bed Bath &
Beyond Inc.
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third quarter and Countrywide Credit Industries Inc.
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rise in earnings on a surge in home-mortgage refinancing.
U.S. Treasuries declined after the
University of Michigan said its index of consumer confidence rose more than
expected this month, making another interest rate cut by the Federal Reserve
less likely.
U.S. stocks advanced, helping the Standard &
Poor’s 500 Index
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PowerRating) to its fourth gain in five days amid optimism
the deepest slump in company earnings in a decade is ebbing. The S&P 500 is
up 0.17% at 1141.91. The S&P 500 is trading just below its 200-day EMA. The
Dow Jones Industrial Average
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0.29% at 10,014.1. The Nasdaq
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is trading slightly above its 200-day EMA.Â
Nike
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PowerRating), the world’s largest maker of
athletic shoes, reported fiscal second-quarter earnings of 48 cents a share,
beating estimates by two cents. The company said it controlled costs, boosted
sales overseas and sold more basketball-related clothing in the U.S. Nike has
lost 3.6% this year. It is up $2.07 to $55.86.
Nortel
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PowerRating) is currently up 59 cents to $6.95.
North America’s second-biggest maker of phone equipment projected a
smaller-than-expected loss for the fourth quarter. The company said it will lose
16 cents a share, excluding items, compared with analysts’ estimates of a loss
of 18 cents, First Call said. Nortel will
also cut 3,000 fewer jobs than previously estimated and extend the term of an
amended credit agreement. The stock has lost 78% this year as telecommunications
companies scaled back spending amid a slowing economy.
JDS Uniphase Corp.
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PowerRating), the world’s
largest supplier of components used in fiber-optic networks, has advanced 33
cents to $8.53.
Western Digital
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The computer disk-drive maker said it will top its own sales and earnings
forecasts for the fiscal second quarter on higher-than-expected disk-drive
sales.
Manugistics Group Inc.
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PowerRating) is up $2.97 to
$18.51. The software maker reported a smaller-than-expected loss in its fiscal
third quarter as sales have started to improve. The company said it lost 11
cents a share in the quarter, excluding costs. On that basis, which isn’t in
accordance with generally accepted accounting principles, analysts expected
Manugistics to lose 16 cents a share according to First Call.
Palm
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company may have to stop using the handwriting-recognition software on some of
its handheld computers after a federal judge ruled the technology infringes a
Xerox patent. Palm said it will appeal the ruling.
The Pharmaceutical Index
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.59% at 385.4. The Biotechnology Index
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the Semiconductor Sector Index
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PowerRating) is up as well to 517.29, a 1.91%
increase.
STOCKS ON THE MOVE
ArQule Inc.
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or 27%, to $15.45 and has traded as high as $15.74. The drug developer said it
may receive $120 million to $345 million from Pfizer Inc.
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PowerRating) as the two
companies expand a collaboration intended to generate new leads for Pfizer
research.
Strategic Diagnostics Inc.
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PowerRating)
is down $1.79, or 22%, to $6.47 and has traded as low as $5.79. The maker of
food and water test kits expects to earn 1 cent to 4 cents a share for the
fourth quarter. The company is expected to earn 6 cents, the average estimate of
four analysts polled by Thomson Financial/First Call.
Cirrus Logic Inc.
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PowerRating) is up
$1.14, or 10%, to $12.49 and has traded as high as $12.87. The maker of
integrated circuits said sales for the third quarter ending Dec. 29 will meet or
beat the company’s previous estimates, and its per-share loss will be at the
favorable end of estimates. The company is expected to have a loss of 23 cents,
the average estimate of six analysts polled by First Call.
Cognos Inc.
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PowerRating) is up $2.81,
or 14%, to $23.09 and has traded as high as $23.49. The software maker earned 15
cents a share in the third quarter ended Nov. 30, beating the 12 cent average
estimate of analysts surveyed by First Call.
Core Laboratories NV
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PowerRating) is down
$1.79, or 13%, to $12.41 and has traded as low as $12.40. The oil field-services
company said fourth quarter earnings will be 18 cents to 22 cents a share, as
low oil and gas prices lead customers to reduce spending. Core Labs was expected
to earn 26 cents, the average estimate of eight analysts polled by First Call.
From our percent gainers list:
Labor Ready
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PowerRating) is up 5.60%.
Today’s range is 5.10 to 5.35. While the recession has slowed the demand for
workers, especially in retail, business is steady and a leading provider of
temporary manual labor, Labor Ready, Inc. is placing workers in holiday-related
positions.
Penton Media
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PowerRating) is up 6.50%.
Today’s range is 6.21 to 6.61.
Advanced Auto Parts Inc
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PowerRating) is up 5.79%.
Today’s range is 42.50 to 45.50. Advanced Auto Part has merged with Discount
Auto Parts and will begin trading on the New York Stock Exchange for the first
time next Thursday.
From our percent losers list:
Polymedia Corp
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PowerRating) is down 8.02%. Today’s
range is 16.92 to 18.70. PLMD broke below its support line at 18.
Intrado Inc
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PowerRating) is down 7.42%. Today’s
range is 27.51 to 28.77. After hitting its resistance near 30, TRDO could
retreat to its support at 26.
Ocular Sciences
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PowerRating) is down 5.19%. Today’s
range is 22.50 to 24.35. OCLR has broken below its support level at 24.