Is This The Beginning Of A Trend In Commodity Stocks?
Stocks are mixed
Wednesday as money rotates out of energy and into technology. The
major indices gapped higher but have slid steadily since the open. Only the
Nasdaq remains green, on the Intel news.
Intel (INTC)
reported $0.26 vs. $0.27 estimate, in-line, after a tax benefit. Revenues were
$8.5 billion Gross margins were 55.7%.
Yahoo (YHOO)
was in-line at 0.09 and guided in-line. Revenue was $655 million, slightly
higher than consensus.
McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating)
says Q3 will come in at 0.61. Analysts were expecting 0.49. U.S. same store
sales rose 10.6%
Crude oil is retreating for a
second day in a row, trading below $52. Key inventory data is due out Thursday.
API said that refineries were working at 90% of capacity in September. A seat on
the NYMEX sold for $2
million; the previous record was $1.65 million on May 2. Compare this with a
NYSE seat, which recently sold for $1.2 million.
Have commodity stocks
peaked? They are lower today, notably copper stocks. BHP Billiton PLC
(
BHP |
Quote |
Chart |
News |
PowerRating) said that copper supply worldwide would exceed demand in the
second half of 2005 as more production comes online.
The International Copper Study Group said that Chinese copper consumption
fell 21% in July year/year. Copper and aluminum prices fell dramatically today.
Energy stocks, too, are lower today, as are oil shipping companies and steel
companies.
Google
(
GOOG |
Quote |
Chart |
News |
PowerRating) founders Larry Page and Sergey Brin are in
Bangalore India today, where they plan to hire engineers and online and sales
support staff. Larry Page told the Hindustan Times, “Going forward, we will be
looking for more people at many different locations. We will be hiring a lot of
bright engineers in the next two-three years.”
| Dow | -39.75 | 10038.31 |
| S&P 500 | -4.23 | 1118.08 |
| Nasdaq | +5.55 | 1930.72 |
Strong sectors are: Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) +2.82%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +2.04%, Internet
(
GIN.X |
Quote |
Chart |
News |
PowerRating) +1.77%.
Weak sectors are:Â Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating)
-3.71%, Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating) -2.32%, Natural Gas
(
XNG.X |
Quote |
Chart |
News |
PowerRating) -2.77%.
10-year notes are: +030
at 112 295
The dollar
is +0.22 at 88.24
Gold is -3.70 at 410.50
Crude Oil is -0.48 at 51.70
1.50 billion on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 1117 | Up Vol 200 |
| Declining | 2013 | Down Vol 433 |
| Ratio | 1.80 | 2.16 |
| Nasdaq |
||
| Advancing | 1345 | Up Vol 567 |
| Declining | 1527 | Down Vol 261 |
| Ratio | 1.13 | 2.17 |
Stocks in the News
Accenture
(
ACN |
Quote |
Chart |
News |
PowerRating) beat by 0.02.
Harley Davidson
(
HDI |
Quote |
Chart |
News |
PowerRating) is seen reporting 0.75 for Q3.
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) won a $776 contract with to build three X-45C pilotless
planes.
California Amplifier (CAMP)
missed by 0.03 and guided in-line.
Borders
(
BGP |
Quote |
Chart |
News |
PowerRating) cut its 2004 forecast.
Linear Technology
(
LLTC |
Quote |
Chart |
News |
PowerRating) guided Q2 lower.
Cell Genesis
(
CEGE |
Quote |
Chart |
News |
PowerRating) warned.
Jones Apparel
(
JNY |
Quote |
Chart |
News |
PowerRating) warned and now sees Q3 EPS at 0.75-0.77.
Atherogenics
(
AGIX |
Quote |
Chart |
News |
PowerRating) said a trial of its rheumatoid arthritis drug
failed.
WebMethods
(
WEBM |
Quote |
Chart |
News |
PowerRating) guided higher.
PEC Solutions (PECS)
won a $6 million contract with the Department of Education.
NABI Biopharma (NABI)
received a fast track designation for StaphVAX®.
Brice Wightman