Collapse After The Close!
Stocks were
lower on light volume news of higher-than-expected inflation.
Producer prices picked up steam, jumping 0.8%, the
largest jump since March 2003. The core PPI also rose 0.3%, with initial claims
falling 15,000 to 336,000 for the week ended June 12. The index of leading
economic indicators was up 0.5 percent in May to 116.5.
The Senate Banking committee
gave Greenspan the green light for a fifth term as Fed chief.
Richard Grasso asked to
have his case moved from a state court to a Federal court. The lawsuit, filed by
NY AG Eliot Spitzer, seeks $100 million in compensation returned.
The State of California is
suing Enron for allegedly manipulating prices during the 2000-2001 energy
crises.
The SalesForce.com IPO
is scheduled for next Wednesday after two delays.
A new study showed that 82
million Americans — or one in three under age of 65 –Â lacked health
insurance for at least one month over the last two years according to a study by
Washington-based Families USA. California had the most people without insurance
at 11.9 million with Texas coming in second at 8.5 million.
Friday is options expiration.
Also, look for Treasury Secretary Snow to speak at 11:30 AM ET.
After the close, Red Hat
(
RHAT |
Quote |
Chart |
News |
PowerRating) beat by a penny, pro forma, but was light on revenue and and
collapsed after hours. Adobe
(
ADBE |
Quote |
Chart |
News |
PowerRating) beat by 0.02 and guided higher.
Solectron
(
SLR |
Quote |
Chart |
News |
PowerRating) also beat, was light on revenues and guided higher.
| Dow | -2.06 | 10337.52 |
| S&P 500 | -1.51 | 1132.05 |
| Nasdaq | -14.56 | 1983.67 |
Strong today were Amex Gold
Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +1.44%, Oil Index
(
XOI.X |
Quote |
Chart |
News |
PowerRating) +1.34%, Gold
and Silver
(
HGX.X |
Quote |
Chart |
News |
PowerRating) +1.27%.
Weak today were Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating)
-3.37%, Disk Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) -1.94%, Networking
(
NWX.X |
Quote |
Chart |
News |
PowerRating)
-1.83%.
Economic news release today
include: PPI that rose by 0.8%, Core PPI also up 0.3%. Initial claims that fell
by 15,000 to 336,000. Leading indicators was up 0.5% with Philadelphia Fed Index
at 28.9.
10-year Notes were +095
at 108 155.
The dollar
was -0.44 at 89.60.
Gold was +4.90 at
388.60.
Crude Oil was +1.17 at
38.81.
Volume is 1.3 billion on
the NYSE, and 1.46 billion on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing | 1883 | Up Vol 702 |
| Declining | 1367 | Down Vol 552 |
| Ratio | 1.37 | 1.27 |
| Nasdaq |
||
| Advancing | 1238 | Up Vol 409 |
| Declining | 1861 | Down Vol 1033 |
| Ratio | 1.50 | 2.52 |
Stocks in the news:
General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) denied
rumors that they would close plants or cut jobs in Europe and would seek to save
costs by building more cars on the same basic platform.
TXU
(
TXU |
Quote |
Chart |
News |
PowerRating) sold its Texas natural gas utility to
Atmos Energy
(
ATO |
Quote |
Chart |
News |
PowerRating) for $1.93 billion in cash; allowing ATO to double its
utility customer base.
Accenture
(
ACN |
Quote |
Chart |
News |
PowerRating) posted preliminary earnings of 37
cents a share on sales of $3.69 billion with consulting sales up 13% at $2.33
billion.
Brice Wightman
bricew@tradingmarkets.com