What’s Good For GM…
The
major indexes were off to a positive start this morning, which reversed itself in the first half-hour into a
low volume downtrend that had the Dow and the Nasdaq closing up slightly, and
the S&P 500 down slightly. Semiconductor and Internet stocks led with modest
gains for the day, with oil service and biotechnology topping the losers’ list.
The Dow Jones Industrial
Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
0.26%Â to
9,865.75.
The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down
0.08% to
1,132.42. The
Nasdaq [$COMPQ |$COMPQ] closed up
0.32% to
1,943.94.
In economic news, new home
sales surged 5.7% to 946,000, the highest level since March.
Economists were expecting 924,000 new home sales.
Overall NYSE volume was
1,167,289,000. NYSE
advancing issues were
1,665, with up volume at
573,458,000; declining issues were
1,473, with down volume at
1,163,727,000. Overall Nasdaq volume was
1,460,692,000. Nasdaq advancing issues were
1,826, with up
volume at
807,659,000; declining issues were
1,728
with down volume at
634,662,000. The
VIX was down 0.22 to 21.71. The TRIN
was up 0.26Â to 1.14.
With overall volume coming in
below average, it appears traders were on the sidelines ahead of key data to be
released this week. All three major indexes remain below their 50-day moving
averages, with the semiconductor and broker/dealer indexes closing nearly on
this mark.
Top sectors of the day were the Nasdaq Combined
Transport Index
(
$TRANX.X |
Quote |
Chart |
News |
PowerRating) up 2.26% at 1387.85 and the
Semiconductor Sector Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) up
1.84% at 545.82.
Losing sectors of the day were the
Oil Service Sector Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) down
2.98%
at 81.93, and the
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) down
2.95% to 51.20.
Office equipment maker Xerox
(
XRX |
Quote |
Chart |
News |
PowerRating), up 13.13% to 11.20, announced that despite sales falling 13% in the
fourth quarter losses were narrower than expected with earnings of 15 cents a
share. The reported earnings do not reflect restructuring costs and the effects
of currency exchange rates.
Financial services company
American Express
(
AXP |
Quote |
Chart |
News |
PowerRating), down 2% to 36.25, reported a 56 percent drop in
fourth quarter profits attributed to the travel slump and recession effects. The
company earned 22 cents a share, compared to 50 cents a share for the same
quarter last year, and in line with the 20 to 25 cent forcasts of Wall Street
analysts.
Fiber-optics network builder
Global Crossing
(
GX |
Quote |
Chart |
News |
PowerRating), down 41.18% to 0.30, filed for chapter 11
bankruptcy, with Singapore Technologies and Hutchison Whampoa to
acquire 60% of the company.
The number 1 toy retailer
Toys “R” Us
(
TOY |
Quote |
Chart |
News |
PowerRating), up 5.97% to 19.87, said that it will close 64 stores
and cut 1,900 jobs in an effort to reduce costs. The company also expects to cut
$126 million in after-tax charges for the fourth quarter results.
Auto makers were given a boost
today from upgrades by Morgan Stanley on Ford Motor Co.
(
F |
Quote |
Chart |
News |
PowerRating), up 3.22%
to 15.08, and General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), up 3.67% to 50.26. The are now
rated as “outperform,” up from “neutral.”
Semiconductor company Texas
Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating), up 3.10% to 28.30, was upgraded by Credit Suisse
First Boston to “buy,” under the feeling that a bottom is on place. The company
will release earnings this afternoon.
Communications equipment maker
Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating), up 2.98% to 19.70, had its “buy” rating
reiterated by Salomon Smith Barney under the belief that the company will put in
a strong fiscal second quarter. Credit Suisse First Boston also believes the
company will surpass expectations.
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