California Leads The Country–So What Does This Trend Mean?
Stocks were lower Wednesday as oil climbed over $50
and up 10% from last week. Crude oil inventories fell 1.6 million
barrels–traders were expecting a build. Gas inventories rose +0.6 million
barrels.
The Nasdaq snapped an eight-day winning streak. Atlanta Fed Governor Jack Guynn
in a speech, said the U.S. economy “has ample strength to withstand further
removal of accommodative monetary policy.”
New home sales for April rose +0.2% to 1.316 million units…record highs but
below estimates. April durable goods orders rose +1.9%; ex transportation, -0.2%
March was revised to -1.6%. The homebuilders are weak on the March home sales
revision.
After the close, Novell
(
NOVL |
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News |
PowerRating) missed by 0.03, ex-items.Â
Petco
(
PETC |
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PowerRating) was in-line at 0.32 but was light on revenues. Express
Scripts
(
ESRX |
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PowerRating) declared at 2:1 stock split. Michael’s Stores
(
MIK |
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PowerRating)
beat by 0.04. UBS started Teva Pharmaceuticals
(
TEVA |
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PowerRating) with a buy.
Goldman reiterated its outperform rating on Google
(
GOOG |
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PowerRating),
Yahoo
(
YHOO |
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PowerRating) and Ebay
(
EBAY |
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PowerRating). Separately, JP Morgan raised
estimates on Google.
Visteon
(
VC |
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PowerRating) is restructuring as part of a deal with Ford. The
stock is higher pre-open.
Autozone
(
AZO |
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News |
PowerRating) beat by 0.06; sales, however, were weaker than
expected.
Bubble? The last time California had this many people selling real
estate was 1990–the year real estate peaked. 22,000 applicants took the exam
last last month–up threefold from this time a year ago.Â
Strong sectors were:Â Oil Services
(
$OSX.X |
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Chart |
News |
PowerRating) +1.71%Â Â Â
Oil
(
$XOI.X |
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Chart |
News |
PowerRating) +0.95%Â Natural Gas
(
$XNG.X |
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Chart |
News |
PowerRating)
+0.53%Â Â Â Â Â
Weak sectors were:Â Brokers Â
(
$XBD.X |
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Chart |
News |
PowerRating)
-1.26%Â Â Â Chemicals
(
$CEX.X |
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PowerRating) -1.16% Â Â
Semis
(
$SOX.X |
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PowerRating) -1.10%Â Â
| Dow | -45.88 | 10,457.80 |
| Nasdaq | -11.50 | 2050.12 |
| S&P 500 | -4.06 | 1190.01 |
The dollar was -0.02 at
86.31
Crude Oil was +1.31 at
50.98
Gold was +1.00 at 419
1.5 billion on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1084 | Up Vol 601 |
| Declining | 2169 | Down Vol 936 |
| 2.00 | 1.55 | |
| Nasdaq |
||
| Advancing | 1052 | Up Vol 536 |
| Declining | 1968 | Down Vol 836 |
| 1.87 | 1.55 |
Stocks in the News
Computer Sciences
(
CSC |
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PowerRating) beat by 0.02 and raised 2006 guidance.
Echostar
(
DISH |
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PowerRating) was cut to ‘neutral’ at Bank of America.
UBS cut Genzyme
(
GENZ |
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PowerRating) to ‘neutral.’
Calpine
(
CPN |
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PowerRating) is restructuring; the stock is higher pre-open.
Encysive
(
ENCY |
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PowerRating) received an FDA application for PAH.
Medtronic
(
MDT |
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News |
PowerRating) was in-line but light on revenues.Â
Boston Scientific
(
BSX |
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PowerRating) lowered guidance, citing acquisitions and
updated expectations for the Taxus stent.
Network Appliance
(
NTAP |
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Chart |
News |
PowerRating) was in-line and announced a $300 share
repurchase program.
Brice Wightman
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