Tuesday’s Market Mover
Stocks were
mixed Monday. Better-than-expected
factory orders report and a Cisco upgrade failed to inspire buyers. The
Nasdaq fell below the psychological 1700
level during the session, bouncing off a five-month long trendline drawn
from the March 12 low. Bonds bounced for a second day after a three-week sell
off that brought interest rates to a one-year high. Gold was higher after last
week’s sell off and the dollar was weaker.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) added +32.07 at 9186.04 The S&P 500
(
$SPX.X |
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PowerRating)
gained +2.67 at 982.82. The Nasdaq
(
$COMPQ |
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PowerRating) fell -1.86 at 1714.06.
The day’s leading sectors are
Gold Bugs
(
$HUI.X |
Quote |
Chart |
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PowerRating), +1.58%, Gold & Silver
(
$XAU.X |
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Chart |
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PowerRating),
+1.25%, Telecom
(
$XTC.X |
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Chart |
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PowerRating), +1.06%, and Networking
(
$NWX.X |
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Chart |
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PowerRating), +1.10%.
Weak today are Internet
Commerce
(
$ECM.X |
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PowerRating), -2.95%, Biotech
(
$BTK.X |
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PowerRating), -1.35%,
Airlines
(
$XAL.X |
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PowerRating), -1.97%, Oil Services
(
$OSX.X |
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PowerRating),
-2.09%, and Computer Hardware
(
$HWI.X |
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Chart |
News |
PowerRating), -0.87%.
In economic news today,
Factory Orders in June rose by 1.7% or better than an expected rise of
1.5%.
The 10-year U.S. Note
was +1 035 at 111 210.
The dollar was -0.51 at
96.36.
Gold was -0.20 at
349.70.
Crude Oil was -0.51 at
31.84.
Volume was
1,295,150,000 on
the NYSE, and 1,555,278,000 on the Nasdaq.
Market breadth was negative,
with NYSE declining issues over advancing issues by 1.797, and down volume over
up volume by 1.14. Nasdaq declining issues over advancing issues at 1.44, and
up volume over down volume at 1.54.
Top Dow stocks were:
Altria
(
MO |
Quote |
Chart |
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PowerRating), +0.72 at 41.00,
SBC Communications
(
SBC |
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Chart |
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PowerRating), +0.45 at 23.85, Procter & Gamble
(
PG |
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Chart |
News |
PowerRating),
+1.14% at 87.84, Johnson & Johnson
(
JNJ |
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Chart |
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PowerRating), +0.17 at 50.60, and
American Express
(
AXP |
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Chart |
News |
PowerRating), +0.25 at 43.67.
Stocks in the news:
Consumer products maker
Church Dwight
(
CHD |
Quote |
Chart |
News |
PowerRating) gained after the company reported
second-quarter results that topped estimates. The maker of Arm & Hammer baking
soda earned 59 cents a share compared to 45 cents in the year-ago period.
Excluding gains, the company earned 46 cents a share, or 4 cents above analysts’
estimates. Church Dwight also raised full-year guidance from between $1.77 to
$1.81 to $1.84 to $1.86.
Networking equipment giant
CSCO
(
CSCO |
Quote |
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PowerRating) was slightly higher after an upgrade from SG
Cowen. Cowen upgraded the stock from “outperform” to “strong buy” on the belief
that revenues will accelerate as non-core business segments will increase and
make up a bigger piece of the company’s revenues. Cisco is also set to report
fourth-quarter results on Tuesday after the close. Analysts are looking for 15 cents a share.
Drug maker CV Therapeutics
(
CVTX |
Quote |
Chart |
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PowerRating) was off by 20% after the company announced that the FDA has
cancelled a September meeting to discuss the company’s angina drug, Ranexa.
However, a company spokesperson said that the cancellation of the meeting will
not affect the October 30 deadline for FDA approval.
Biotech company Genzyme
(
GENZ |
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PowerRating) was lower by 3% after the company announced that it would acquire SangSat
(
SANG |
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PowerRating) for $600 million in cash. Genzyme will pay $22.50 a share
for SangSat. Although the acquisition will hurt the company’s earnings until
2004, it will help it enter the organ transplant drug market.
Semiconductor equipment maker
Novellus
(
NVLS |
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PowerRating) gained a dollar after the company received an
upgrade from Goldman Sachs
(
GS |
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PowerRating). Goldman believes that the company’s
mid-quarter update on August 28 will be a “positive catalyst” for the stock.
Graphics chip maker NVIDIA
(
NVDA |
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PowerRating) announced that it will buy
privately held MediaQ for $70 million in cash. MediaQ makes graphics and
multimedia technologies for mobile devices. NVIDIA CEO Jen-Hsun Huang added,
“This acquisition supports NVIDIA’s strategy of extending our platform reach and
accelerates our entry into the wireless mobile markets.”
Steel producer U.S. Steel
(
X |
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Chart |
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PowerRating) gained after the company reported a
smaller-than-anticipated loss. For its second quarter the company reported a
loss of 51 cents a share compared to a profit of 28 cents a share in the
year-ago quarter. Excluding one-time charges, the company lost a penny a share
compared to consensus estimates that called for a loss of 6 cents a share.
If you have any comments or
questions, please feel free to email me.
vincentm@tradingmarkets.com