Industrials At 5-Month Highs, Here’s What’s Driving It

Stocks continued higher today driving the Dow to a 5-month high.

Disney (DIS)
reported 0.42, beating the 0.38 estimate. Revenues were $7.715 billion, lower
than expected.

Cisco (CSCO)
was in-line at 0.25; revenue was $6.58 billion, also in-line. Guidance, however,
fell short of some analysts’ estimates

American International Group
(
AIG |
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income.

At press time, Whirlpool
(
WHR |
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(
MYG |
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halted after WHR raised its bid for MYG to $21/share.

Ninety percent of S&P companies have reported thus far and profits have
jumped an average 13.6%, up from analysts’ 5.7% expectations a few months ago.

The EIA reported a 2.6 million barrel build in crude, a 2.1 million barrel
build in gasoline and a 2.6 million barrel build in distillates–all more than
expected.

Strong sectors are:    Airlines

(
XAL.X |
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(
RLX |
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(
XAU |
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Weak sectors are:   Networking

(
NWX |
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Qualcomm
(
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Sepracor
(
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will be added to the Nasdaq 100 Index prior to the open on Monday.

China Medical Technologies (CMED) is going public today. The stock priced at
$15, the middle of the range.

Reddy Ice Holdings
(FRZ) priced 10.2 million shares  at $18.50, above the range. The company
is the largest manufacturer and distributor of ice in the U.S.

RBC Bearings
(ROLL) prices 9.3 million shares at $14.50, the low end of the expected $14 –
$16 range. The company makes precision bearings.

Steel stocks will be in focus after Mittal Steel
(
MT |
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largest steelmaker, reported Q2 earnings fell 15%.
(
X |
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(
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(
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