These Two Stocks Are Weighing On The Dow
The
major indexes are mixed midday after digesting key employment data.
The pre-market release of a disappointing nonfarm payrolls number initially had
no effect on the market as prices held firmly positive, though the regular
session has been met by some selling pressure. Weighing on he Dow are Altria,
which struggles with financial issues brought on by legal woes, and Intel, which
has had its estimates cut by UBS Warburg. With conflict in Iraq continuing to
stir things up, the afternoon trading session may be quiet with market players
unwilling to take a position going into the weekend. Volume is light, and
breadth mixed with the NYSE slightly positive and the Nadaq slightly negative.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is +0.21% at 8,257.96. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
is +0.13% at 877.62. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is -0.81% at 1,385.23.
Leading today are airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), +3.29%, insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), +1.33%,
pharmaceuticals
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), +0.96%, and
banks
(
BKX.X |
Quote |
Chart |
News |
PowerRating), +0.95%.
Lagging today are
biotechnology
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), -3.86%, semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
-2.78%, and healthcare providers
(
$RXH.X |
Quote |
Chart |
News |
PowerRating), -2.49%.
In economic news, nonfarm payrolls were
down 108K vs. expectations of a loss of 40K, the unemployment rate came
in at 5.8% vs. expectations of 5.9%, hourly earnings were up 0.1% vs.
expectations of a 0.2% rise, and the average workweek came in at 34.3 vs.
expectations of 34.2.
The 10-year U.S. Note
is +040 at 114 130.
The dollar is +0.17 at
100.95.
Gold is -0.90 at 324.00.
Crude Oil -0.87 at
28.10.
Volume is at 613,638,000
on the NYSE, and at 764,442,000 on the Nasdaq.
Market breadth is mixed,
with NYSE advancing issues over declining issues by a ratio of 1.23, and up
volume over down volume by a 1.02 ratio. Nasdaq declining issues over advancing
issues are at 1.13, and down volume is over up volume by a 2.57 ratio.
Strongest in the Dow are:
McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating),
+2.20% at 1.39, JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), +2.05% at 25.45, United
Technologies
(
UTX |
Quote |
Chart |
News |
PowerRating), +1.85% at 59.83, American Express
(
AXP |
Quote |
Chart |
News |
PowerRating),
+1.59% at 35.23, Citgroup
(
C |
Quote |
Chart |
News |
PowerRating), +1.45% at 37.08, Eastman Kodak
(
EK |
Quote |
Chart |
News |
PowerRating),
+1.3% at 31.26, and Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating), +1.2% at 26.0.
Stocks in the news:
Chip giant Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
-3.19% at 17.01, is weighing down the Dow after UBS Warburg lowered its
estimates on the company for the quarter ending in June. The firm now expects
the company to pull in revenues of $6.54 billion vs. previous estimates of $6.65
billion.
Also in the chip sector,
Stmicroelectronics
(
STM |
Quote |
Chart |
News |
PowerRating), -4.16% at 18.91, has guided lower for the
first quarter with new revenue estimates of $1.618 million vs. previous
estimates of $1,620million.
Restaurant company
Applebee’s
(
APPB |
Quote |
Chart |
News |
PowerRating), -2.44% at 27.52, has been downgraded by Merrill
Lynch to “neutral” from “buy”.
Tobacco company Altria
(
MO |
Quote |
Chart |
News |
PowerRating),
-3.64% at 28.62, is the Dow’s worst performing stock as the company announced it
may have to file for bankruptcy. The country’s largest cigarette maker is having
trouble coming up with the $12 billion for a bond ordered by a court in
Illinois.
Entertainment giant America
Online
(
AOL |
Quote |
Chart |
News |
PowerRating),+1.51% at 11.43, had its earnings estimates raised by
Merrill Lynch due to stronger operating results. in the company’s film, network
and online divisions.
In the biotech sector
Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating), -35.07% at 18.18, has issued a profit warning, and
now sees revenues coming in between $60-62 million vs. a previous estimate of
between $71-73 million.
Software maker PeopleSoft
(
PSFT |
Quote |
Chart |
News |
PowerRating), -10.75% at 14.73, has issued a first-quarter profit
warning, and now expects to earn $0.11-0.12 vs. a consensus of $0.14.
Mercury Interactive
(
MERQ |
Quote |
Chart |
News |
PowerRating),
-3.29% at 31.13, has had its estimates cut by Goldman Sachs based on
PeopleSoft’s profit warning.
Insurer Aetna
(
AET |
Quote |
Chart |
News |
PowerRating),
-0.75% at 49.01, has been upgraded by Prudential to “buy” from “hold”.
Financial services company
New Century Financial
(
NCEN |
Quote |
Chart |
News |
PowerRating), +0.50% at 33.87, has announced that it
expects to beat its first-quarter earnings consensus due to record loan
production volume.
Home builder Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating), -2.76% at 60.97, has been downgraded by Deutsche Securities to “hold”
from “buy”.
In the pharmaceutical sector,
Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating), +1.83% at 32.89, has announced favorable results for
its anti psychotic drug Ziprasidone.
Communications services company
Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating), +5.88% at 15.31, beat its fourth-quarter
earnings estimates by $0.05 with profits of $0.07 per share.