Giant Day For This Four-Letter Stock

Stocks were higher
Monday

amid easing oil prices. Venezuelan President Chavez survived a recall
election, and fears of a possible disruption in oil production diminished. The
Empire State Manufacturing Index fell to its lowest level since May 2003, to
12.6 in August from 35.6 in July. A reading above zero still indicates
expansion. The Insurance Index
(
IUX.X |
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is up over 1.5%; companies are
still assessing damage from Hurricane Charley. Damage is estimated at between
$10-$15 billion. Allstate
(
ALL |
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said that the storm would impact its
Q3 results; ALL is trading at 46.36, up 0.93. The Airline Index
(
XAL.X |
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is
also up, over 4.5%.

KMart
(
KMRT |
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was the big
winner on the Nasdaq today after reporting better earnings; it was the third
consecutive profitable quarter since the company emerged from bankruptcy a year
ago. The company generated over $2.00/share in cash. KMRT will sell 54 stores to
Sears. The stock rose $11.15 to $76.05.

Google could begin trading as early as
Wednesday.

Berkshire Hathaway said it held an 8%
share of Pier One Imports
(
PIR |
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.

Tuesday, retail will be in focus as we expect
earnings from
 DKS, HD, JCP, SPLS, TJX
and BJ. Also look for CPI (consensus 0.2%), Housing Starts (consensus 1900K) and
Capacity Utilization (consensus 775%).

Dow  +129.20 9954.55
S&P 500 +14.54 1079.34
Nasdaq +25.62 1782.84

Strong today were: Airlines
(
XAL.X |
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+5.41%, Internet
(
GIN.X |
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+3.30%, Biotech
(
BTK.X |
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+3.52%, Brokers
(
XBD.X |
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+3.35%.

10-year Notes were -155 at 112 095

The dollar
was +0.06 at 87.96

Gold was +2.10 at 402.60

Crude Oil was -0.40 at
45.63

Volume was 1.19 billion
on the NYSE and 1.26 billion on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 2318 Up Vol 945
Declining 766 Down Vol 101
Ratio 3.06 9.35
Nasdaq
Advancing 2034 Up Vol 942
Declining 1098 Down Vol 201
Ratio 1.85 4.68

Stocks in the News

 

Allstate
(
ALL |
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said Hurricane Charley
may hurt its results.

Profits rose at food distributor Sysco
(
SYY |
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rose, posting 0.43/share.

Number-two home improvement retailer Lowe’s
(
LOW |
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reported an 18% increase in their Q2.

WalMart
(
WMT |
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PowerRating)
maintained its August
sales forecast and said demand was strong in areas hit by Hurricane Charley.

Brice Wightman