General Motors Revving Higher, Here’s Why

Stocks are trading lower today.  Equities
are modestly lower as chip stocks are weighing on the market.

Despite a positive mid-quarter report from Intel
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,
semiconductor issues are the biggest losers of the day. Chip stocks have rallied
in recent days from bullish reports suggesting increasing demand from companies
such as Texas Instruments
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, Taiwan Semiconductor
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,
LSI Logic
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, and National Semiconductor
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.  Intel’s
boost of their second quarter revenue estimates are failing to provide similar
results.

Shares of General Motors
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are revving higher and helping to
offset losses in the major indices today.  The automaker is reporting that 
United Auto Workers Union representatives are willing to discuss healthcare
issues with the company. Yesterday the automaker reported that it will be laying
off 25,000 workers due to rising healthcare costs.

In economic news, Trade Deficit in April widen by an expected 6.3% to -$57
billion.

Strong sectors are:  Gold Bugs

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+1.07%  Gold
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+0.94%    Chemicals
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+0.93%    

      

Weak sectors are:   
Semiconductors

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-1.87%    Internets
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-1.50%     Healthcare
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-0.93%

Dow -18.41 10,484.61
Nasdaq -17.44 2,059.47
S&P 500 -4.68 1,196.25

The dollar is +0.62 at
88.69

Crude Oil is +0.23 at
55.80

Gold is 1.20  at
424.30

ce=”Arial” size=”2″ face=”Arial”>Volume is 554 million on the NYSE and
689 million on the Nasdaq.

Market breadth is negative

NYSE Issues
Advancing 1320 Up Vol 238
Declining 1789 Down Vol 326
0.74 .73
Nasdaq
Advancing 1144 Up Vol 197
Declining 1665 Down Vol 517
0.68 0.38

 

Stocks in the News


Citigroup

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agreed to pay $2
billion to settle a class-action suit brought by Enron stock and bond holders.

LSI Logic
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raised its second quarter revenue guidance to between
$465 million and $475 million.

Intel Corp
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  increased its second-quarter financial
targets.

Callaway Golf
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extended its contract with Annika Sorenstam to
past 2010.

Toys “R” Us
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reported a sharply steeper loss in the first
quarter.

 

 

Brice Wightman