Down Week For The Market — Here’s How You Can Use That Information For Monday
Stocks fell Friday, for the week and for the month, as investors worry about
rates and tensions in Iraq.
This makes it five straight down days for both the NDX and the SOX and the
biggest weekly fall in two years for the Nasdaq.
The Dow has lost 250 points in the past
three days. For the week, the Dow fell 2.3%, the Nasdaq lost 6.3%, and the SPX
fell 2.9%. For the month, the Dow lost 1.3%, the Nasdaq lost 3.7% and the SPX
fell 1.7%Â Historically speaking, when the market is down three days in a
row and is above its 200-day moving average (e.g. the SPX) it has risen the next
day 62% of the time and has risen for the following week 67% of the time.
The Midwest saw slight pickup in business according to the Chicago PMI with the
index rising to 63.9.
At an emergency meeting yesterday,
China’s central bank said that they wanted to slow down its roaring economy and
may raise interest rates by as much 50 basis points. The comments caused Asian
markets to drop as much as 4%.
Oil Giant ChevronTexaco
(
CVX |
Quote |
Chart |
News |
PowerRating) reported earnings that were well ahead
of analysts’ consensus at $2.6 billion with revenue up 9.1% to $33.57 billion.
CVX noted strength in its refining and marketing unit. Procter & Gamble
(
PG |
Quote |
Chart |
News |
PowerRating) earned $1.53 billion on revenue of $13.03 billion. Its beauty care
division experienced a double-digit increase in sales with a 41% increase in
volume. Biogen Idec
(
BIIB |
Quote |
Chart |
News |
PowerRating) posted a loss of $41 million with revenue
up to $541.7 million. BIIB reaffirmed its 15% revenue growth and 20% EPS growth
targets through 2007.
On Tuesday, the Fed meets, and
while they are not expected to raise rates, investors will be looking for any
change in language as a tip-off.
| Dow | -46.70 |
10225.57 |
| S&P 500 |
-6.59 | 1107.30 |
| Nasdaq | -38.63 |
1920.15 |
The day’s leading sectors were
Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating) +0.43%, Energy
(
DXE.X |
Quote |
Chart |
News |
PowerRating) +0.40% and Natural
Gas
(
XNG.X |
Quote |
Chart |
News |
PowerRating) +0.15%.
Weak today were Networking
(
NWX.X |
Quote |
Chart |
News |
PowerRating) -3.62%, Internet
(
ECM.X |
Quote |
Chart |
News |
PowerRating) -4.00%, and
Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating) -3.03%.
Economic news releases today:
Personal income that was flat at 0.4%, personal spending that was
lower-than-expected at 0.7%. Michigan sentiment was higher-than-expected at 94.2
and Chicago PMI rose to 63.9.
10-year Notes were +105
at 110 160
The dollar
was -0.02 at 90.55
Gold was -0.06 at 387.34
Crude Oil was -0.01 at
37.38
Volume was 1.64 million
on the NYSE, and 2.18 million on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing |
1354 | Up Vol 468 |
| Declining | 1909 | Down Vol 1144 |
| Ratio | 1.40 | 2.44 |
| Nasdaq |
||
| Advancing |
958 | Up Vol 318 |
| Declining |
2216 | Down Vol 1841 |
| Ratio | 2.31 | 5.78 |
Stocks in the news:
Foundry
(
FDRY |
Quote |
Chart |
News |
PowerRating) missed earnings
expectations with net income at $19.9 million on sales of $104 million and
guided the Street lower.
Winn-Dixie
(
WIN |
Quote |
Chart |
News |
PowerRating) announced plans to eliminate
10,000 jobs and posted a big drop in profit. Income was down to $610,000 with
sales at $2.67 billion.
Anadarko Petroluem
(
APC |
Quote |
Chart |
News |
PowerRating) traded higher after
reporting earning of $392 million on revenue of $1.46 billion with strong
volumes and higher commodity prices.
Cigna
(
CI |
Quote |
Chart |
News |
PowerRating) reported earnings that fell by 67% to $78
million with earnings from continuing operations up 28%. Revenue was down to
$4.7 billion with a declining membership base of 5.5 million.
Brice Wightman
bricew@tradingmarkets.com