Dow Within Shouting Distance Of New Highs
Stocks were higher–the fourth rally in five trading
sessions–with the Dow and S&P close to 52-week highs. Two Dow
component upgrades and a chip sector upgrade provided the early impetus.
Construction spending for January rose a better than expected +0.7%.
The ISM was 55.3 in February, slightly lower than expected, vs. 56.4 in January.
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) was upgraded at JP Morgan, as was Texas
Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating). The firm upgraded the entire semiconductor sector.
Marsh & McLennan
(
MMC |
Quote |
Chart |
News |
PowerRating) reported a quarterly loss of 1.28/share vs.
a 0.69 profit last year. The company will lay off 2500 employees and will cut
its dividend in half.
Continental Airlines
(
CAL |
Quote |
Chart |
News |
PowerRating) reached a tentative agreement with
pilots, mechanics and flight attendants. The company expects to save $500
million per year under the new agreements.
Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating) upgraded at Merrill Lynch, to ‘buy.’
Interest rates are higher; 10-year notes are at a 7-month low. Oil service
stocks were lower today, including BHI and TDW. Refiners are lower, too: SUN,
TSO, NBL, AHC. Energy stocks had a good run in February.
It seems fewer companies are giving guidance. 72% gave guidance in 2003; in
2004 that number dropped to 55% and looks to be even lower this year.
M&A deals are on the second fastest pace on record, with January and February
recording 1195 deals worth $202 billion.
Two NYSE seats sold today–for $1.5 million and $1.475 million–which was 25%
above the last sale 6 weeks ago.
Strong sectors were: Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating)
+4.78%Â Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +2.25%Â Brokers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating)
+1.55%Â Â Â Disk Drives
(
$DDX.X |
Quote |
Chart |
News |
PowerRating) +1.43%Â Â Â
Weak sectors were: Oil Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating)
-2.52%Â Â Gold Â
(
$HUI.X |
Quote |
Chart |
News |
PowerRating) -2.22%Â Â Â Â
Natural Gas
(
$XNG.X |
Quote |
Chart |
News |
PowerRating) -1.81%
Dow | +64.66 | 10,830.59 |
Nasdaq | +19.53 | 2071.25 |
S&P 500 | +6.83 | 1210.44 |
The dollar was +0.27 at
82.78
Crude Oil was -0.07 at
51.68
Gold was -1.90to 432.30
ce=”Arial” size=”2″ face=”Arial”>Volume was 1.7 billion on the NYSE and
1.9 billion on the Nasdaq.
Market breadth was positive.
NYSE | Issues | |
Advancing | 2111 | Up Vol 1019 |
Declining | 1291 | Down Vol 470 |
1.63 | 2.16 | |
Nasdaq |
||
Advancing | 1836 | Up Vol 1286 |
Declining | 1293 | Down Vol 481 |
1.41 | 2.67 |
Stocks in the News
XM Satellite Radio
(
XMSR |
Quote |
Chart |
News |
PowerRating) was the winner in a Smart Money
comparison of satellite radio music channels.
Piper Jaffray said that Elan
(
ELN |
Quote |
Chart |
News |
PowerRating) is worth $10.
Smithfield Foods
(
SFD |
Quote |
Chart |
News |
PowerRating) reported earnings that doubled.
Brice Wightman