Here’s A Stock Some Funds Will Have To Buy
Stocks are slightly higher on
low volume, with the Dow and S&P at 6-week highs.
The Republican National Convention is next week;
Many New York traders are taking next week off.
Thursday was the slowest trading day of the year.
The U.S. GDP rose at an annual rate of 2.8% in
Q2, the slowest rate of advance since Q1 2003 and lower than the Commerce
Department expected. The University of Michigan consumer sentiment number rose
to 95.9, down slightly from 96.7 in July.
Oil is slightly lower, shrugging of news of another attack on the Southern Iraq
pipeline. The past week, oil has dropped 12%. Economists estimate a $10 rise in
the price of oil raises interest rates by about 1/2%.
Aetna said it will do its own study on VIOXX and other drugs to treat arthritis.
Earlier this week, an FDA study found that patients who took Merck’s VIOXX had
50% more heart attacks.
Coach
(
COH |
Quote |
Chart |
News |
PowerRating) will join the S&P 500,
replacing Charter One
(
CF |
Quote |
Chart |
News |
PowerRating). Mutual funds which track the index will
add the stock to their portfolios. The effective date will be announced soon.
At a Fed symposium in Jackson, WY, Greenspan
said that productivity growth will likely slow and said an aging population will
put more pressure on U.S. finances and recommended extending the retirement age.
UBS is in talks to buy Schwab’s
(
SCH |
Quote |
Chart |
News |
PowerRating)
Soundview unit for up to $300 million.
Dividend paying stocks — REITS and utilities — have done well in August. REITs
have gained 6.6% and the utility index rose 1.8%.
Jaguar sales fell 25% in July; Jaguar is a
division of Ford
(
F |
Quote |
Chart |
News |
PowerRating).
| Dow | +19.24 | 10192.65 |
| S&P 500 | +2.28 | 1107.37 |
| Nasdaq | -9.12 | 1862.04 |
Strong today are: Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating) +1.52%, Oils
(
XOI.X |
Quote |
Chart |
News |
PowerRating) +1.01%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +1.08%
Weak are: Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -3.68%, Brokers
(
XBD.X |
Quote |
Chart |
News |
PowerRating) -0.48%.
10-year Notes are +060 at 112 315
The dollar
is +0.45 at 89.75
Gold is -4.70 at 402.30
Crude Oil is flat at
43.10
Volume is 445 million on
the NYSE and 557 million on the Nasdaq.
Market breadth is positive.
| NYSE | Issues | |
| Advancing | 1937 | Up Vol 259 |
| Declining | 1200 | Down Vol 254 |
| Ratio | 1.03 | 1.00 |
| Nasdaq |
||
| Advancing | 1679 | Up Vol 353 |
| Declining | 1205 | Down Vol 178 |
| Ratio | 1.39 | 1.98 |
Stocks in the News
Chiron
(
CHIR |
Quote |
Chart |
News |
PowerRating) said it delayed its flu vaccine because some lots did not meet
sterility standards.
Conoco Phillips
(
COP |
Quote |
Chart |
News |
PowerRating) may buy 25% of
Russian oil company Lukoil.
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) guided lower after
the close yesterday.
American Airlines
(AMR)
said its outlook for Q3 “has worsened.” The company may have to spend
an additional $1 billion on fuel this year.
Google options
begin trading in the March cycle under the symbol GOQ. Initial strikes
will range from 80 to 140, in 5-point increments.
TiVo (TIVO)
beat by 0.12 and beat on revenues.
Tech Data (TECD)
beat by 0.03 and beat on revenues.
Brice Wightman