Greenspan Stands Firm On Interest Rates But Here’s What Stocks Are Doing

Stocks are trading slightly higher today.  Equities
are recovering after earlier losses brought on by Fed Chairman Greenspan’s
testimony that gave little hint to the ending of the recent rate hikes. The Fed
Chairman commented “The most recent data support the view that the soft readings
on the economy observed in the early spring were not presaging a more serious
slowdown in the pace of activity”. He also repeated that the Fed can continue to
raise rates at a “measured pace”. 

In economic news, weekly jobless claims fell by 21,000 to 330,000 or inline
with estimates.

Shares of Google
(
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12 points yesterday.  Merrill Lynch raised the Internet giant’s 2006
revenue estimates to $5.2 billion from $5.1 billion.

After the bell, Intel
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RBC Capital Markets raised the company’s Q3 estimates from 33 cents to 36 cents
a share.

Maurice “Hank” Greenberg is resigning from the board of American
International Group
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resign now results from my inability to receive information regarding the
company and its operations necessary to fulfill my fiduciary duties”.

Strong sectors are:  Oil Services

(
$OSX.X |
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(
$DXE.X |
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+1.72%    Networking
(
$NWX.X |
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Weak sectors are:    Gold Bugs
(
$HUI.X |
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-0.86%    Transports
(
$TRANX.X |
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Gold & Silver
(
$XAU.X |
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Navistar
International
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income and raised sales forecast.