Insurance Stocks: New Study Quantifies What We Already Know

Stocks
are higher on a Cisco upgrade
and positive economic news from
overseas. Cisco
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got a boost after CIBC upgraded the stock. A
quarterly survey in Japan showed that capital spending rose 10.7% from April to
June from a year ago, and German industrial production came in at 1.6% — double
the projections.

Oil is lower after the OPEC head Yusgiantoro said
markets had a 1.5 million bpd oversupply and Hurricane Frances missed oil rigs
in the Gulf of Mexico.

Insurance stocks are higher after damage from
Hurricane Frances
appears to less than expected. Allstate
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is trading at 47.63, up 0.61. A study by Prudential found that property
and casualty insurers rose an average +2.9% after a major hurricane, and +1.1%
relative to the S&P 500.

Las Vegas Sands filed a $350 million IPO,
with Goldman Sachs as lead underwriter. The company is controlled by Comdex
founder Sheldon Adelson, 71.

The FDA
approved Eli Lilly’s
(
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anti-depressant Cymbalta.

Americans spend 3.5 billion hours a year in
traffic, up from 700 million hours 20 years ago. This according to

the Texas Transportation
Institute’s annual Urban Mobility Report, released Tuesday.

Dow +67.40 10327.52
S&P 500 +6.75 1120.38
Nasdaq +16.06 1860.54

Strong today are: Brokers

(
XBD.X |
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+2.08%, Homebuilders
(
CEX.X |
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+1.94%, Internet
(
GIN.X |
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+1.40%.

Weak are: Oil
(
XOI.X |
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-0.34%. Semiconductors
(
$SOX.X |
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-0.32%.

10-year Notes are +050 at 112 200

The dollar
is -0.25 at 89.28

Gold is -2.30 at 398.90

Crude Oil is -0.91 at
43.08

Volume is 576 million on
the NYSE and 668 million on the Nasdaq.

Market breadth is positive.

NYSE Issues
Advancing 2238 Up Vol 378
Declining 908 Down Vol 142
Ratio 2.46 2.66
Nasdaq
Advancing 1883 Up Vol 462
Declining 1025 Down Vol 149
Ratio 1.83 3.10

Stocks in the News

Intel
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was downgraded by Lehman following last week’s
disappointing update.

United Parcel
(
UPS |
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received tentative federal approval to expand
into China.

Raytheon
(
RTN |
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  won a $440 million missile contract with the
US Navy.

Fleetwood Enterprises’
(
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earnings
rose.

Seagate
(
SEG |
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guided higher, looking for between 6 and 8 cents per
share.

The US Army will open Halliburton’s
(
HAL |
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service contract to competitive bids.

Yellow Roadway
(
YELL |
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guided Q3 higher.

Brice Wightman