Insurance Stocks Get Hit. So When Do They Become A Buy?
Stocks are higher
on mixed
economic data. The Nasdaq leads the major indices. Oil supply
disruptions in Iraq are sending 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 |
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PowerRating) is cutting Q4 production below
last year’s levels after its sales fell 13% in August.Â
Pfizer
(
PFE |
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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.
| Dow | +8.70 | 10182.55 |
| S&P 500 | +2.48 | 1106.67 |
| Nasdaq | +14.10 | 1852.20 |
Strong today are: Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating)
+1.47%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +1.06%.
Weak are: Insurance
(
IUX.X |
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Chart |
News |
PowerRating)
-0.68%, Banks
(
BKX.X |
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Chart |
News |
PowerRating) -0.48%.
10-year Notes are +195 at 113 225
The dollar
is -0.11 at 89.94
Gold is +2.20 at 409.90
Crude Oil is +1.68 at
43.80
Volume is 582 million on
the NYSE and 813 million on the Nasdaq.
Market breadth is positive.
| NYSE | Issues | |
| Advancing | 2048 | Up Vol 365 |
| Declining | 1118 | Down Vol 169 |
| Ratio | 1.83 | 2.15 |
| Nasdaq |
||
| Advancing | 1863 | Up Vol 613 |
| Declining | 1022 | Down Vol 149 |
| Ratio | 1.82 | 4.11 |
Stocks in the News
Forest Labs’
(
FRX |
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Chart |
News |
PowerRating) experimental treatment for Alzheimer’s failed in a clinical trial.
General Motors
(
GM |
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Chart |
News |
PowerRating)
will report August car sales today.
Intel
(
INTC |
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News |
PowerRating)
is in focus ahead of its mid-quarter update tomorrow.
Boston Scientific
(
BSX |
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Chart |
News |
PowerRating) said Taxus sales have slowed and guided lower.
eBay
(
EBAY |
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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).
Brice Wightman