If You Use AOL, You’ll Be Seeing A Little More Microsoft Soon. Here’s Why…
Stocks
closed mixed Thursday, with the averages up until mid-day, when they
began their decline. The economy grew faster than expected and first-time
jobless claims fell, with the four-week moving average at a six-week low of
427,000. Despite a warning from Tech Data
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the charge today with semiconductors on top. Bonds are higher today after a
two-day pullback. The dollar was once again weaker.
The Dow Jones Industrial
Average
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slid 3.58 at 949.64. The Nasdaq
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The day’s leading sectors were Semiconductors
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$SOX.X |
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(
XAU.X |
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HWI.X |
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+1.37%.
Weak today were Biotechs
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-2.20%, REITs
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$DJR.X |
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-2.15%, Oil Services
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$OSX.X |
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$UTY.X |
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In economic news, First-quarter
GDP was upwardly revised to +1.9 from +1.6%. This topped estimates for a
revision to 1.8%. Weekly jobless claims fell by 9,000 to 424,000. This was still
higher than expectations of 420,000. However the more closely watch four-week
moving average fell to a six week low of 427,000.
The 10-year U.S. Note
was +195 at 119 025.
The dollar was -74 at
92.84.
Gold was -0.30 at
369.30.
Crude Oil +0.08 at
29.18.
Volume is heavy at
1,685,897,000 on the NYSE, and at
2,223,266,000 on the Nasdaq.
Market breadth was
mostly positive, with NYSE advancing issues over declining issues by a ratio
of 1.13, and down volume over up volume by a 1.54 ratio. Nasdaq advancing issues
over declining issues at 1.39, and up volume over down volume is at a 2.06
ratio.
Top Dow stocks were:
Intel
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INTC |
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KO |
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SBC |
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HD |
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+0.20 at 31.56, and Mcdonalds
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MCD |
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Stocks in the news:
After the close, Microsoft
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settled a protracted antitrust lawsuit with AOL Time Warner
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AOL |
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to pay $750 million, and license its browser technology to AOL for free for
seven years.
Retailer Dollar General
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DG |
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results. The company reported first-quarter earnings of 18 cents a share
compared to 15 cents a share during the same period a year ago. The results also
surpassed estimates by 2 cents. Looking forward, the company sees earnings
growth between 11 to 15% for fiscal 2003.
Ultimate Electronics
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was higher on very heavy volume. The company reported a first-quarter
loss of 10 cents a share compared with a loss of 3 cents a share for the same
period a year ago. The results did top estimates calling for a loss of 13 cents
a share.
Celgene
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CELG |
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off on more than double its average volume. The company placed a private placement of
$325 worth of convertible notes. The 1.75% notes have a conversion price of
$48.45 and will mature in 2008.
Scholastics
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was lower on heavy volume. The company announced plans to cut 400 jobs or
approximately 4% of its workforce. Scholastics blamed the job cuts on the
“challenging industry and general economic conditions”.
The maker of the popular video
game series “Grand Theft Auto,” Take Two Interactive
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was off on more than triple its average volume. The company reported second-quarter
results of 36 cents a share compared to 25 cents a share a year ago. The company
also topped estimates by a penny.
Tech Data
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TECD |
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off on very heavy volume. The company reported first-quarter results of 38
cents a share compared to 60 cents a share for the same period a year ago. The
results were also 2 cents shy of analysts’ estimates. Looking into next quarter,
the company forecast results of 34 to 38 cents a share or below estimates of 41
cents a share.