Here’s Why The Airlines Are Lower Today
Stocks
are lower Monday on signs that al Qaeda may have
been behind M-11 (last week’s attacks in Madrid), raising investors’ fears.
Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) are much lower today over concerns of continued
higher jet fuel prices. Delta Airlines
(
DAL |
Quote |
Chart |
News |
PowerRating) warned that its losses
may reach $400 million up from the previous forecast of $325 million. The main
topic among traders is the Spanish terror attack and the upset in the election
there.
General Electric
(
GE |
Quote |
Chart |
News |
PowerRating)
announced plans to acquire InVision Technologies
(
INVN |
Quote |
Chart |
News |
PowerRating) for $900
million. InVision makes bomb-detection equipment, and is expected to strengthen
GE’s industrial growth business. Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) said its March
same-store sales are on track to reach the expected 5%. The company said many
were cashing their tax refund checks, with money orders and consumables the most
purchased goods. ImClone
(
IMCL |
Quote |
Chart |
News |
PowerRating) reported a loss of $26.3 million on
revenue of $19.8 million. Its R&D costs fell by 25% to $27.5 million.
| Dow | -115.50 |
10124.51 |
| S&P 500 |
-13.67 |
1106.92 |
| Nasdaq | -33.50 |
1951.25 |
The day’s leading sectors are
Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.20%, Healthcare
(
HMO.X |
Quote |
Chart |
News |
PowerRating)
+0.68%, Energy
(
DXE.X |
Quote |
Chart |
News |
PowerRating) +0.44%, and Natural Gas
(
XNG.X |
Quote |
Chart |
News |
PowerRating)
+0.43%.
Weak today are Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -6.83%, Networking
(
NWX.X |
Quote |
Chart |
News |
PowerRating) -3.04%, and Semis
(
GSM.X |
Quote |
Chart |
News |
PowerRating)
-2.40%.
Economic news releases today
included better-than-expected Capacity Utilization at 76.6%; Industrial
production rising by 0.7%; and the NY Empire State Index falling to 25.33.
10-year Notes are +20 at
117 100
The dollar
is +0.80 at 89.09
Gold is +3.50 at 399.91
Crude oil is +0.73 at
36.95
The euro
is -0.94 at 122.25
Volume is 680,000,000 on
the NYSE, and 899,000,000 on the Nasdaq.
Market breadth is mixed.
| NYSE | Issues | |
| Advancing | 804 | Up Vol 101 |
| Declining | 2313 | Down Vol 560 |
| Ratio | 2.87 | 5.60 |
| Nasdaq | ||
| Advancing | 629 | Up Vol 118 |
| Declining | 2379 | Dow Vol 672 |
| Ratio | 3.78 | 5.58 |
Top Dow stock:
United Technologies
(
UTX |
Quote |
Chart |
News |
PowerRating), +1.72%
at 88.86.
Stocks in the news:
Specialty retailer Saks
(
SKS |
Quote |
Chart |
News |
PowerRating)
declared a special $2 dividend to shareholders of record as of April 30,
following the sale of its credit card business.
United Technologies
(
UTX |
Quote |
Chart |
News |
PowerRating)
agreed to purchase Linde AG’s refrigeration unit for $305 million. UTX also was
upgraded by Deutsche Securities.
Nortel’s
(
NT |
Quote |
Chart |
News |
PowerRating) CFO and Controller
were put on administrative leave, amid accounting probes. William Kerr and
MaryAnne Pahapill will replace Douglas Beatty and Michael Gollogly.
Shares of Electronic Data Systems
(
EDS |
Quote |
Chart |
News |
PowerRating)
opened 2% higher after the company agreed to sell its software development
unit for $2.05 billion in cash to Bain Capital, Warbug Pincus and Silver Lake
Partners.