Inflation worries sink stocks

Stocks fell Tuesday on lowered
guidance and inflation concerns. 

Lexmark
(
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lowered guidance for Q#
and now sees EPS of 0.40 -0.50 vs. the $1.02 consensus. LXK fell 17.44 to close
at 13.50.

Clorox
(
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guided lower for Q2 and now sees 0.41 -0.47 vs the 0.55 consensus.
(full
story
)

Sun Micro
(
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said it entered into a multi-year strategic agreement with Google
(
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promoting Java and the Google Toolbar.

Speeches by two Fed officials–St. Louis’ William Poole and Dallas’
Robert Fischer–focused investor’s attention on inflation.

US chain store sales rose 0.6%. Factory
orders
rose 2.5% vs the 2.0% consensus.



Strong Sectors
were:  
  Airlines  
(
XALI |
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+2.90%       Disk Drives
(
HWI |
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+0.66%     Drugs
(
DRG |
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+0.65%



Weak sectors
were:
    
Computer Hardware
 
(
HWI |
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-3.72%     
Natural Gas

(
XNG |
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-3.49%     
Oil

(
OIX |
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-3.48%        


Dow

-94.37
10,441.11


Nasdaq

-16.07 2139.36


S&P 500

-12.23
1214.47

Stocks in the news:

ExxonMobil
(
XOM |
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said the Libyan government awarded it a contract to explore for oil offshore.

Eastman Kodak
(
EK |
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PowerRating)
was downgraded to
underweight at J.P. Morgan.

Mylan Labs
(
MYL |
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PowerRating)
said it received FDA
approval for Amlodipine Besylate tablets. (full
story
)

Proctor & Gamble
(
PG |
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was downgraded to
hold at Citigroup.

CMGI Inc.
(
CMGI |
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reported a breakeven
Q4 vs. a 0.02 loss a year ago.

Brice Wightman