Giant Order For This Blue Chip


Stocks are flat as investors digested multiple earnings reports from last week.

Retail gasoline
prices rose another 2.5 cents to a national average of $1.79.

OSI Pharmaceuticals

(
OSIP |
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is up
100% on a positive news release of its
Tarceva
drug that treats
non-small
cell lung cancer.
Genentech
(
DNA |
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PowerRating)
is a partner with OSIP on the drug; its shares traded 12% higher for
the day.

Microsoft

(
MSFT |
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and JDA Software
(
JDAS |
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entered into a
multiyear alliance for delivering retail demand solutions.


Boeing

(
BA |
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PowerRating)
gave the final go-ahead to produce its 7E7 jet and announced
that  Japan’s All Nippon Airways has placed an order for 50 7E7 jets valued at
$6 billion — the single largest order in Boeing’s history. The first flight is
expected to take off in mid-2007.

Google
said that CSFB and Morgan Stanley
(
MWD |
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PowerRating)
have been selected as the
lead underwriter for its multi-billion dollar IPO. Founders Larry Page and
Sergey Brin are said to own about 1/3 of the company; other investors are
venture firms Kleiner Perkins Caufield & Byers and Sequoia Capital as well as an
investment group which includes Tiger Woods.

After the
close Kindred Healthcare
(
KIND |
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, Conexant
(
CNXT |
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and
Pulte Homes

(
PHM |
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are expected to report with EPS of 0.78, 0.03 and 0.85
respectively.

Dow -0.77
10472.32
S&P 500
-1.22
1139.89
Nasdaq -4.89
2044.88

The day’s leading sectors are
Biotechs
 
(
BTK.X |
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PowerRating)
+2.30%, Gold and Silver
(
XAU.X |
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+1.88%,
Amex Gold Bugs

(
HUI.X |
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+1.73%, Internet
(
ECM.X |
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+1.66%,

Weak today are Healthcare
(
HMO.X |
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 -2.29% Semis
(
SOX.X |
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News |
PowerRating)
-2.17%.

Economic news releases today: a
big jump in new home sales to 1.228 million.

10-year Notes are +35 at
110 250

The dollar
is -0.29 at 91.07

Gold is +1.40 at 396.50

Crude Oil is +0.44 at
36.90

Volume is 533,000,000 on
the NYSE, and 778,000,000 on the Nasdaq.

Market breadth is mixed.

NYSE Issues
Advancing
1467 Up Vol 259
Declining 1675 Down Vol 254
Ratio 1.14 1.01
Nasdaq
Advancing
1494 Up Vol 336
Declining
1484 Down Vol 400
Ratio 1.01 1.22

Top Dow stocks are:

Boeing
(
BA |
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Chart |
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PowerRating)
+1.83% at
43.20, General Motors
(
GM |
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+0.76% at 49.93, SBC Communications
(
SBC |
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+0.83% at 25.65, JP Morgan Chase
(
JPM |
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+0.71% at 38.23.

Stocks in the news:

TXU Corp
(
TXU |
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PowerRating)
said it sold $4.2 billion
of assets in Australia and Texas that is expected to cut is debt by 42%. The
company also plans to use $3.36 billion to pay down debt.

Computer
Associates

(
CA |
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PowerRating)
named Kenneth Cron as its interim chief executive. The
company is also restating $2.2 billion in revenue that was booked prematurely.
The restatement would have no impact on its current earnings.

Nissan Motor
(
NSANY |
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News |
PowerRating)
reported
earnings that rose by 1.7% to $4.62 billion on strong sales and continued cost
cutting. Global sales volume was up 10% to 3.06 million with a 18% rise for the
US market.

First Horizon Pharmaceutical
(
FHRX |
Quote |
Chart |
News |
PowerRating)

fell after reporting earnings of $5 billion with revenue up at $32 million. FHRX
is looking to earn 13 cents with revenue of $33 million for the next quarter.

Brice Wightman

bricew@tradingmarkets.com