JP Morgan Warns, Here’s What Happened
Stocks traded higher as weak economic data boosted
prospects that the Fed may soon stop raising interest rates.
Comments from Richard Fisher, president of the Dallas Federal Reverse Bank also
boosted equities. "We’re clearly in the eighth inning of a tightening
cycle," said Mr. Fisher. Furthermore he added "There is room to tighten a
little bit further. Then we will see how we are standing against
inflation."
The S&P 500 closed above the 1,200 level for the first time since mid March.
The Nasdaq 100 also had a stellar performance with the help of
semiconductor ( AMAT, INTC, GNSS) and Internet issues (EBAY, GOOG, YHOO).
In economic news, the ISM Index for May was 51.4, slightly less than expected. This is
the sixth consecutive lower ISM number. Construction spending for April
rose 0.5%, in-line.
After the bell, JP Morgan announced that their second quarter trading results
are "the worst the firm has experienced in some time".
CSFB upped its price target on Google
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to $350, citing momentum and the company’s core advertising business. CSFB also
believes that its valuation relative to its growth rate is not yet stretched.
S&P Equity Research also raised their price target on Google
to $317 from $300.
Hovnanian
(
HOV |
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raised guidance for 2005.
Kohl’s
(
KSS |
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guidance.
Strong sectors are: Gold
(
$HUI.X |
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Internet Commerce
(
$ECM.X |
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+1.75%
| Dow | +81.58 | 10549.06 |
| Nasdaq | +19.22 | 2087.86 |
| S&P 500 | +10.72 | 1202.22 |
The dollar was +0.34 at
88.14
Crude Oil was -0.21 at
54.39
Gold was +0.50 at 415.80
1.7 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2404 | Up Vol 1059 |
| Declining | 918 | Down Vol 322 |
| 2.62 | 3.29 | |
| Nasdaq |
||
| Advancing | 1986 | Up Vol 1381 |
| Declining | 1126 | Down Vol 398 |
| 1.77 | 3.47 |
Stocks in the News
JP Morgan upgraded Visteon
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VC |
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Identix
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Scan Systems.
Caci International
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contract.
General Mills
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GIS |
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Goldman upgraded Best Buy
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BBY |
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Boutique firm Evercore Partners is planning an IPO. Clinton Treasury
official Roger Altman is a partner. Using Greenhill’s
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valuation, Evercore could be worth $700 million.
Amgen
(
AMGN |
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WYE |
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approval for Enbrel.
Prudential upped its price target on Genentech
(
DNA |
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CononoPhillips
(
COP |
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Mylan
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PowerRating) is higher after Carl Icahn said his $20/share
offer stands. He already own 9.8% of the company. Today, the company FDA
conditional approval letter for its next generation hypertension drug.
Engineered Support Systems
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EASI |
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Fairchild
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FCS |
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Brice Wightman