How Rising Gas Prices Are Impacting This NYSE Stock

Stocks are
lower on a widening trade balance,
worry
about tomorrow’s PPI number and


hawkish comments from Atlanta Fed President Jack Guynn.

 Record
gasoline prices propelled May retail sales to a seasonally adjusted $335.8
billion, a 1.2% increase. Gasoline sales rose 4% despite record level prices.
According to Lundberg Research, gasoline prices at the the pump fell for the
first time since December, although down a mere 3 cents. The US trade deficit
widened on a weakened dollar to $48.3 billion with oil prices at the highest
levels in 21 years, to a record $142.3 billion. 

MGM Mirage
(
MGG |
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raised its offer to acquire Mandalay Resort
(
MBG |
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to $71 a share.
Nokia

(
NOK |
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cut its planned launch of 100 new games for N-Gage gaming
phones from 100 to 40 as it continues to lose market share to its competitors.
Atrix Laboratories
(
ATRX |
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rose 12% after it agreed to be acquired by
QLT
(
QLTI |
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for $855 million in a stock and cash transaction.

Bank of America reduced its
weighting in equities by 5% to 60%.

Dow -80.33 10330.50
S&P 500 -11.69 1125.67
Nasdaq -29.55 1970.86

Strong today is Oil Services

(
OSX.X |
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PowerRating)
+0.30%.

Weak today are Amex Gold
Bugs

(
HUI.X |
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-4.31%,  Gold and Silver
(
XAU.X |
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-3.70%.

Economic news release today
included a widening trade deficit at $48.3 Billion, Retail sales that met
consensus of a 1.2% increase, excluding autos sales rose by 0.7%.

10-year Notes are -95 at
107 105

The dollar
is +1.07 at 90.21

Gold is -2.10 at 384.50

Crude Oil is -0.25 at
38.20

Volume is 500,000
million on the NYSE, and 625,000 million on the Nasdaq.

Market breadth is negative.

NYSE Issues
Advancing 583 Up Vol 72
Declining 2604 Down Vol 413
Ratio 4.48 5.74
Nasdaq
Advancing 754 Up Vol 133
Declining 2237 Down Vol 476
Ratio 2.97 3.57

Top Dow stocks are:

Honeywell
(
HON |
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,
+0.72%, Altria
(
MO |
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News |
PowerRating)
, +0.29%, Boeing
(
BA |
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News |
PowerRating)
+0.18%,
McDonalds

(
MCD |
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News |
PowerRating)
, +0.07%.

Stocks in the news:

OSI Pharmaceuticals
(
OSIP |
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News |
PowerRating)

announced that its Phase III study of combining its Aptosyn and Taxotere
medication for treatment of advanced non-small lung cancer did not have a
significant impact.

Applied Materials
(
AMAT |
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PowerRating)
said it
is being investigated by Taiwanese trade regulators as part of a patent dispute
with Jusung Engineering.

99 Cents Only Store
(
NDN |
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PowerRating)
fell after
warning it will miss second-quarter earnings and sales would be below
expectations. The company cited rising fuel costs, among other things.

Brice Wightman

bricew@tradingmarkets.com