Why Retail Will Be A Factor This Week
After
two days of solid gains, stocks are mixed this midday. Blue chips are
slightly lower while techs are slightly higher. Following yesterday’s four-
month high in the major indices, equities are under pressure this morning after
a suicide attack in Saudi Arabia, lower-than-expected revenues from the world’s
largest retailer Wal-Mart
(
WMT |
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PowerRating), and Merill Lynch’s downgrade of several chip
stocks. Bonds are again higher today after some earlier weakness. The US dollar is firmer today after hitting another four-year low against the Euro.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) is -0.44% at 8,687.72. The S&P 500
(
$SPX.X |
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is -0.13% at 943.85. The Nasdaq
(
$COMPQ |
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PowerRating) is +0.09% at
1542.93.
The day’s leading sectors are Disk Drives
(
$DDX.X |
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PowerRating),
+2.57%, Internet Commerce
(
$ECM.X |
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PowerRating), +1.69%, Oil Services
(
$OSX.X |
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PowerRating),
+1.07%, and Box Makers
(
$BMX.X |
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PowerRating), +0.43%.
Weak today are Gold and
Silver
(
$XAU.X |
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Chart |
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PowerRating), -1.25%, Semiconductors
(
$SOX.X |
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PowerRating),
-0.76%, Paper
(
$FPP.X |
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PowerRating), -0.69%, and Chemicals
(
$CEX.X |
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PowerRating),
-0.40%.
In economic news, the Trade
Balance for March fell to -$41 billion from -$40.4 billion.
The 10-year U.S. Note
is +10 at 117 005.
The dollar is +0.27 at
94.99
Gold is -1.30 at 350.50
Crude Oil +0.50 at
27.83
Volume is 659,000,000
on the NYSE, and at 931,000,000 on the Nasdaq.
Market breadth is mixed,
with NYSE decling issues over declining issues by a ratio of 1.05, and up volume over
down volume by a 1.16 ratio. Nasdaq declining issues over declining issues are at
1.03, and up volume over down volume is at a 1.95 ratio.
Top Dow stocks are:
AT&T
(
T |
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PowerRating), +2.55% at16.88, IBM
(
IBM |
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PowerRating), +0.73% at 89.65, AltriaÂ
(
MO |
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PowerRating), +0.66% at 33.33, and DuPont
(
DD |
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Chart |
News |
PowerRating) +0.62% at 43.21..Â
Stocks in the news:
The world’s largest retailer Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) down 1.2% and off day’s low. The company reported first-quarter
earnings of 42 cents a share versus 37 cents a share a year ago. Although
earnings were inline with expectations,
the company missed the revenue forecast. Other retailers including Ann Taylor
(
ANN |
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PowerRating),
Federated Department stores
(
FD |
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PowerRating), Kohls
(
KSS |
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PowerRating), and Target
(
TGT |
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PowerRating) are
set to report later this week.Â
Drug maker Schering-Plough
(
SGP |
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PowerRating)
is off 1.35% on heavy volume. The company reported first-quarter results of 12
cents a share or down from 41 cents a share in the same period a year ago.
However Schering managed to top estimates by 2 cents. Schering blamed the
results on weak sales of Claritin and lower U.S. sales.Â
Tech Data
(
TECD |
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PowerRating) is
off 2.10% after Lehman Brothers reduced its fiscal year 2004 estimates to $1.65
from $1.81.Â
Wells Fargo downgraded Boston
Scientific
(
BSX |
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Chart |
News |
PowerRating) to “hold” from “buy”. Wells based
the downgrade on valuation concerns.