If You Think Trading Has Been Tough, Consider This…
Stocks were mixed
Wednesday. Carmakers posted sharp declines vs. last year. The Nasdaq
was the winner today, up 12 points. Oil supply disruptions in Iraq and falling
crude inventories sent crude oil prices higher.
The ISM was 59.0 for August and dropped below 60 for the first time in 9 months;
this figure is down from July’s 62. Construction spending rose 0.4% in July, a
new high and in line with estimates. The Employment Index was 55.7 for August;
it was 57.3 in July.
Ford
(
F |
Quote |
Chart |
News |
PowerRating) is cutting Q4 production below
last year’s levels after its sales fell 13% in August. Sales for the popular F
series trucks, however, rose 15%. General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) said sales fell
7% in August.
Prudential Securities downgraded the
software sector to “neutral,” saying companies face pricing pressures and sales
disruptions as they implement new corporate governance regulations.
Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) ended the use of its
discount card for the elderly. The company said it had planned to discontinue
the program on August 31 and had warned cardholders.
The EIA’s weekly petroleum report showed crude
inventories falling by 4.2 million barrels, the lowest level since March 12; gas
inventories rose +0.9 million barrels. Oil prices are higher after northern
Iraq. There was a slight drawdown in the Strategic Petroleum Reserve. OPEC is
planning to raise its output level when it meets September 15 in Vienna;
estimates are that it will raise the current level by 1-2 million bpd.
Hurricane Frances could become the most
expensive storm in the country’s history. Frances is expected to hit the
East coast on Saturday and comes less than a month after Hurricane Charley
ravaged the area. Allstate
(
ALL |
Quote |
Chart |
News |
PowerRating) said that it expects to pay out $425
million in claims from Charley; the stock is down 2%. Some analysts feel
insurance stocks are good buys after a hurricane disaster as it gives the
companies more pricing power.
According to the Stock Trader’s Almanac, the
average market performance for September is -1%, and for the past 53 years,
September is the worst
overall month for the stock market. April is the best, followed by November,
December and January.
The jobs number is Friday, a day after Bush gives
his acceptance speech at the Republican National Convention.
If you think the trading has been tough, consider
this: for the first half of 2004 vs. 2003, specialists’ profits are down
85%!
Â
| Dow | -5.09 | 10168.83 |
| S&P 500 | +1.68 | 1105.92 |
| Nasdaq | +12.31 | 1850.41 |
Strong today were: Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating)
+1.59%, Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating) +1.12%, Homebuilders
(
HGX.X |
Quote |
Chart |
News |
PowerRating)
+1.05%.
Weak were: Insurance
(
IUX.X |
Quote |
Chart |
News |
PowerRating)
-1.05%, Banks
(
BKX.X |
Quote |
Chart |
News |
PowerRating) -0.73%, Brokers
(
XBD.X |
Quote |
Chart |
News |
PowerRating) -0.62%.
10-year Notes were +045 at 113 195
The dollar
was -0.06 at 89.91
Gold was -0.80 at 408.30
Crude Oil was +1.88 at
44.00
Volume was 1.14 billion
on the NYSE and 1.41 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2005 | Up Vol 630 |
| Declining | 1283 | Down Vol 384 |
| Ratio | 1.56 | 1.64 |
| Nasdaq |
||
| Advancing | 1703 | Up Vol 898 |
| Declining | 1328 | Down Vol 402 |
| Ratio | 1.28 | 2.23 |
Stocks in the News
Forest Labs’
(
FRX |
Quote |
Chart |
News |
PowerRating) experimental treatment for Alzheimer’s failed in a clinical trial.
Boston Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating) said Taxus sales have slowed and guided lower.
eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating)
will buy the balance of its South Korean affiliate.
MGI Pharm
(
MOGN |
Quote |
Chart |
News |
PowerRating)
will invest $40 million in Supergen
(
SUPG |
Quote |
Chart |
News |
PowerRating). MOGN rose 19% today.
Brice Wightman