Biggest Drop In 3 Years…

Stocks are lower Tuesday
on higher oil prices
and a drop in consumer spending. Oil made a
21-year high of $44.24 and consumer spending in July fell 0.7%, the largest
amount in 3 years; the Street expected a 0.1% drop. Personal incomes rose 0.2%,
a slowdown from May’s 0.6% rise. Traders are also focused on Friday’s employment
number; according to a Reuters poll, economists expect a rise of  228,000.
The monthly employment survey by Challenger, Gray & Christmas showed employers
planned more job cuts in July than they did the prior month.

Dow -16.08 10163.08
S&P 500 -1.41 1105.21
Nasdaq -14.25 1877.84

Strong today are: Oil  
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+1.13%, Healthcare
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+0.59%, Gold
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+0.43%.

Weak today are: Semis
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SOX.X |
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-2.38%, Internet
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-1.46% and Retail

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-1.12%.

10-year Notes are +055 at 111 015

The dollar
is -0.18 at 89.57

Gold is +1.00 at 392.20

Crude Oil is -0.02 at
43.80

Volume is 598 million on
the NYSE and 676 million on the Nasdaq.

Market breadth is negative.

NYSE Issues
Advancing 1490 Up Vol 246
Declining 1617 Down Vol 308
Ratio 1.08 1.25
Nasdaq
Advancing 1099 Up Vol 189
Declining 1809 Down Vol 456
Ratio 1.64 2.41

Stocks in the news:

Ford’s
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July sales fell 4.1%;
the company lost ground to Asian and domestic competitors.

Qwest reported a wider-than-expected loss

Cal-Maine Foods (CALM} said they will buy back  up to 2 million shares.

Qwest (Q) reported a wider loss.

Profits at Coach (COH) more than doubled.

Adobe (ADBE) raised its Q3 revenue and profit targets.

Tyco (TYC) reported Q3 profit rose 62%.



Ligand {LGND) is lower after reported a worse-than-expected loss.

 

Brice Wightman

bricew@tradingmarkets.com