Banks: Who’s The Next Takeover Target?
Stocks are higher mid-day on
positive economic data and lower oil prices.
Consumer spending rose 0.8% in June although
personal savings rates fell to 0%. The ISM Index rose 1% in June. Oil eased
after spiking on Monday after news of King Faud’s death.
Under pressure from the U.S. government, CNOOC
withdrew its offer to buy Unocal. CNOOC’s bid was about $1 billion higher
than Chevron’s.
JP Morgan Chase
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for acquisitions. According to The Wall Street Journal, the company has
talked with ‘dozens’ of U.S. bank recently to gauge interest.
The Treasury Department is expected to
announce on Wednesday the return of the 30-year treasury bond. In 2001,
the Treasury Department stopped selling the issue.
President Bush signed CAFTA into law
today.
Later in the session, look for earnings from the
big three automakers.
Strong sectors are: Â Semis
(
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Utilities
(
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Weak sectors are: Â Â Airlines
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Â
| Dow | +57.41 | 10,680.40 |
| Nasdaq | +16.87 | 2212.25 |
| S&P 500 | +6.53 | 1241.85 |
Stocks in the news:
Tyco
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Chart beat estimates but lowered its outlook, saying earnings for next
quarter will come in below expectations. Merrill Lynch cut the stock to neutral
from buy, as did Bank of America. Prudential cut its price target to $30 from
$34 and Wachovia downgraded the stock to market perform.
Emerson Electric
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Chart beat by 0.05; the company raised full year guidance.
IAC/Interactive
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beat by 0.05.
Coach
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Chart beat and raised Q1 and 2006 guidance.
Sirius
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Chart posted a narrower than expected loss and beat Wall Street
expectations.
Comcast
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topped targets
Checkpoint
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beat estimates
Transocean
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beat by 0.05.
Career Education
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earnings were below analysts forecast.
TXU Corp.
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beat by 0.35 and reaffirmed guidance for 2005.
Myogen
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reported a narrower than expected loss.
GenProbe
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beat forecast and raised its full year forecast.
Brice Wightman