Delta Seeks Restructuring, Southwest Offers Buyout Packages
Stocks
are flat on extremely light volume. The revised consumer sentiment
for the month of May was lower at 90.2, 4 points off the consensus which was
also the lowest level since December. The Chicago PMI rose unexpectedly to 68.0
from previous forecasts of 62.0. Personal income ticked up 0.6% with spending
also up 0.3%. Oil prices remained strong — trading near the $40 level — as
demand is expected to pick up on Memorial Day weekend, the traditional start of
the summer season. UBS strategists lowered their recommended weights on
integrated oils, exploration and product and refiners to underweight on oil
price risk reasons.
Delta
(
DAL |
Quote |
Chart |
News |
PowerRating) has
hired New York-based law firm Davis Polk & Wardwell for advice on restructuring
its business. Southwest Airlines
(
LUV |
Quote |
Chart |
News |
PowerRating) offered its employees buyout
packages — which
include a combination of cash, travel privileges and health-care benefits.
— in an attempt to manage overstaffing. The company also plans to add 58 new
jets by the end of next year.
Avian flu was found in a
Pilgrim’s Pride
(
PPC |
Quote |
Chart |
News |
PowerRating) chicken breeder flock in Texas. The company said
the discovery would not affect earnings.
| Dow | -16.57 | 10189.12 |
| S&P 500 | -0.57 | 1120.55 |
| Nasdaq | +1.50 | 1986.67 |
Strong today are Oil
Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.87%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +1.57%, Energy
(
DXE.X |
Quote |
Chart |
News |
PowerRating) +0.64% Techs
(
TXX.X |
Quote |
Chart |
News |
PowerRating) +0.37%
Weak today are Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -1.00%, Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) -0.93%.
Economic news releases today
include preliminary GDP rate that showed a 4.4% growth rate, chain deflator that
rose by 2.6% and initial claims missed expectations dropping 3,000 to 344,000.
10-year Notes are -140
at 109 305
The dollar
is +0.30 at 89.01
Gold is -0.40 at 394.50
Crude Oil is +0.13 at
39.56
Volume is 445,000
million on the NYSE, and 505,000 million on the Nasdaq.
Market breadth is mixed.
| NYSE | Issues | |
| Advancing | 1609 | Up Vol 214 |
| Declining | 1457 | Down Vol 216 |
| Ratio | 1.10 | 1.01 |
| Nasdaq |
||
| Advancing | 1298 | Up Vol 247 |
| Declining | 1591 | Down Vol 235 |
| Ratio | 1.22 | 1.05 |
Top Dow stocks are:
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) +1.36%
at 28.82, American International Group
(
AIG |
Quote |
Chart |
News |
PowerRating) +0.66% at 73.26,
Merck
(
MRK |
Quote |
Chart |
News |
PowerRating) +0.55% at 47.69, McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating), +0.43% at
26.35.
Stocks in the news:
Ditech
(
DITC |
Quote |
Chart |
News |
PowerRating) reported earnings of
$8.3 million, beating consensus by 4 cents with revenue $23.1 million..
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating)
raised its second-quarter revenue and profit targets on high demand from memory
manufacturers and made-to-order chip makers in Asia. It now expects to earn 26
cents on revenue of $330 million
Blue Coat Systems
(
BCSI |
Quote |
Chart |
News |
PowerRating) took a hit after
reporting earnings that missed expectations with net income at 1.4 million and
revenue up 79% to $21.1 million.
Coeur d’Alene Mines
(
CDE |
Quote |
Chart |
News |
PowerRating) offered $1.8 billion to
purchase Wheaton River Minerals
(
WHT |
Quote |
Chart |
News |
PowerRating) in a stock and cash deal that
may involve as many as four companies due to previously merger commitments.
Brice Wightman
bricew@tradingmarkets.com