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.


bricew@tradingmarkets.com