Behind The Scenes In The Markets After The London Bombings
Stocks were higher
Friday–with the Dow managing a sturdy triple digit gain–boosted
by a good report from a Dow component and a good unemployment number. The Nasdaq
rose 1.5%, breaking resistance at 2100 and at the highest level since January.
The Dow rose 250 points from the bottom after the bombing on Thursday.
For the week, the Russell 2000 rose 2.9%, the
Nasdaq added 2.6%, the S&P rose 1.5% and the Dow was +1.4%.
Nonfarm payrolls rose by 146,000, less than the expected 200K. The May figure
was revised to +104K from +78K. The unemployment rate fell to 5.0%, the lowest
level since September 2001. Average hourly earnings rose 0.2%.
After the London bombings, a
secret chat room run by financial regulators in Britain helped keep
financial markets open. The system was set up after the September 11 attacks in
the U.S. and allows the Bank of England, the Treasury and the Financial systems
authority to talk with major banks.
Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating) beat by a penny, reporting the best results in the
company’s history. Revenues rose 13%.
JetBlue
(
JBLU |
Quote |
Chart |
News |
PowerRating) CEO David Neeleman said he expects his company to
be profitable for the rest of the year. This, despite higher oil prices.
Barron’s Online said Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) was a better buy than
Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating). AMGN rose 3.28% and was up 14% on the week.
Medical Properties Trust (MPW)
priced its IPO at $10.50, within the $10-$12 range. The company is a REIT which
buys, develops and leases healthcare facilities. MPW closed at $11.
The FDA approved new labels for
Viagra, Cialis and Levitra regarding eyesight loss.
The Russell 2000 hit a
historic high today. For seven years, the small cap indices have outperformed
the large cap indices.
From TrimTabs.com: companies are
averaging $1.5 billion per day in buybacks.
It’s earnings season! Next week,
look for General Electric
(
GE |
Quote |
Chart |
News |
PowerRating). On Monday, Genentech reports
after the close; look for 0.26.
Strong sectors were:Â Â Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) +3.91%Â Â Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
+2.95% Â Â Â Computer Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating) +2.60%Â Â Â Â Â Â
Â
    Â
Weak sectors were: Â Oil Services
Â
(
$OSX.X.X |
Quote |
Chart |
News |
PowerRating)
-0.82%Â Â Â Oil
Â
(
$OIX.X.X |
Quote |
Chart |
News |
PowerRating)
-0.21%Â Â Â Â Â Â Â Â
| Dow | +146.77 | 10,449.06 |
| Nasdaq | +37.22 | 2112.88 |
| S&P 500 | +13.99 | 1211.86 |
The dollar was -0.04 at
90.27
Crude Oil was -1.03 at
59.70
Gold was -0.90 at 422.60
billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2454 | Up Vol 1318 |
| Declining | 824 | Down Vol 338 |
| 2.97 | 3.89 | |
| Nasdaq |
||
| Advancing | 2173 | Up Vol 1281 |
| Declining | 840 | Down Vol 214 |
| 2.58 | 5.98 |
Stocks in the News
Sunoco
(
SUN |
Quote |
Chart |
News |
PowerRating) approved a 2:1 stock split.
Marathon
(
MRO |
Quote |
Chart |
News |
PowerRating) boosted production estimates for Q2.
Siebel
(
SEBL |
Quote |
Chart |
News |
PowerRating) sees Q2 revenue below estimates.
Bank of America reiterated a buy on Apple
(
AAPL |
Quote |
Chart |
News |
PowerRating) and raised
earnings estimates.
Callaway Golf
(
ELY |
Quote |
Chart |
News |
PowerRating) guided lower.
Morgan Stanley cut Wendy’s
(
WEN |
Quote |
Chart |
News |
PowerRating) to underweight.
Brice Wightman