If You Bought This Stock Today, Your Trade May Be Cancelled
Stocks are
trading lower on disappointing data. US
unemployment rate fell to 5.9%. Non-farm payroll grew by 57,000, much lower
than the expected gain of 150,000. The dollar is trading lower on the
disappointing news. Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) reported strong demand for its
microprocessors, and predicted fourth-quarter revenue would be at the high end
of its previous forecast. Intel also warned of a $600 million charge related to
its wireless communication and computing group. Albertson’s
(
ABS |
Quote |
Chart |
News |
PowerRating)
reported a 51% drop in earnings for the third-quarter due to labor disputes in
Southern California. Sales rose by 1.6% to $8.8 billion. The Nasdaq halted
trading temporarily in Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating) due to
extraordinary trading activity and is canceling all trades in COCO between 10:46
AM and 10:58 AM ET. The company said it knows of no events to account for the
sell-off in its stock.
| Dow | -37.25 | 9894.21 |
| S&P 500 | -3.65 | 1066.45 |
| Nasdaq | -19.05 | 1949.28 |
The day’s leading sectors are
Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +2.56%, Gold and Silver [XAU.X|XAU.X]
+1.76%, Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.33%, Utility
(
$UTY.X |
Quote |
Chart |
News |
PowerRating),
+1.14%.
Weak today are Airlines
[XAL.X|XAL.X] -2.40%, Semis [SOX.X|SOX.X]
-1.36%.
Economic news releases included
hourly earnings, up 0.1%, nonfarm payrolls, up by 57,000, and an unemployment
rate of 5.9%.
10-year Notes are +290
at 113 060.
The dollar
is -0.41 at 89.22.
Gold is +2.70 at 406.00.
Crude Oil is -0.51 at
30.75.
Volume is 550,000,000 on
the NYSE, and 887,000,000 on the Nasdaq.
Market breadth is mixed.
| NYSE | Issues | |
| Advancing | 1526 | Up Vol 221 |
| Declining | 1474 | Down Vol 258 |
| Ratio | 1.04 | 1.15 |
| Nasdaq | ||
| Advancing | 1047 | Up Vol 252 |
| Declining | 1835 | Down Vol 453 |
| Ratio | 1.81 | 1.84 |
Top Dow stocks are:
Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating),
+1.94% at 76.71, SBC Comm [SBC|SBC],
+1.84% at 24.47, Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating),
+0.73% at 53.43, and Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating), +0.70% at 35.08.
Stocks in the news:
Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating)
was upgraded by Smith Barney on expectations of improvements in the company’s
power generation, mining equipment and heavy construction equipment
divisions. Analyst Raso expects mining equipment sales to rise 15%-20% in 2004
and full-year earnings to reach $4.58 per share.
JetBlue
(
JBLU |
Quote |
Chart |
News |
PowerRating) shed
17% as it warned investors of lower fourth-quarter operating margins from rising
capacity in the airline industry. Bear Sterns reduced its estimates for JBLU to
15 cents a share, and Lehman Brothers downgraded the company.
The FDA approved Johnson &
Johnson’s
(
JNJ |
Quote |
Chart |
News |
PowerRating) Risperdal. Last year, worldwide sales of the
schizophrenia drug reached $2.15 billion.
Cosmetic manufacturer
Elizabeth Arden
(
RDEN |
Quote |
Chart |
News |
PowerRating) reported higher sales of $321.3 million for the
last quarter, with net income falling to $19.3 million.
bricew@tradingmarkets.com