Legal Issues For These Two Drug Companies
Stocks are
flat with oil prices peaking at $43.59 a barrel.
GDP
fell to a 3.0% increase, on higher energy
and food costs. Chicago PMI rose to 64.7 as activity in the Midwest showed
signs of growth. Michigan Sentiment was also higher at 96.7.
Schering-Plough
(
SGP |
Quote |
Chart |
News |
PowerRating) plead guilty for defrauding
the Medicaid insurance program and agreed to pay penalties totaling $345.5
million. Bristol-Myers Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating) settled with the SEC for
artificially boosting its earnings and will pay a $300 million fine.
Parmalat countersued
Citigroup
(
C |
Quote |
Chart |
News |
PowerRating), seeking $10 billion in damages. Ingram Micro
(
IM |
Quote |
Chart |
News |
PowerRating)
reported earnings that more than doubled to $25.9 million with revenue topping
$5.72 billion. The company expects to earn $27.5 million on revenue of $5.8
billion for Q3.
Gilead Sciences
(
GILD |
Quote |
Chart |
News |
PowerRating) rose on higher HIV drug
sales with net income at $111.5 million on revenue of $320 million.
Sales of the HIV drug Viread rose 18 percent to $197 million.
| Dow | +5.23 | 10134.32 |
| S&P 500 | +1.44 | 1101.87 |
| Nasdaq | +13.03 | 1894.14 |
Strong today are: Gold and
Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating) +1.78%, Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +1.68%, Disk
Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) +1.61%.
Weak today are: Healthcare
(
HMO.X |
Quote |
Chart |
News |
PowerRating)Â -2.09%, Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -0.90%.
Economic news releases today
include GDP that grew at a mere 3.0%, Chain deflator at 3.2%. Michigan Sentiment
Index at 96.7 and Chicago PMI at 64.7.
10-year Notes are +225
at 110 215
The dollar
is -0.25 at 89.89
Gold is +4.10 at 392.50
Crude Oil is +0.65 at
43.40
Volume is 600 million on
the NYSE, and 759 million on the Nasdaq.
Market breadth is positive
| NYSE | Issues | |
| Advancing | 1862 | Up Vol 282 |
| Declining | 1180 | Down Vol 241 |
| Ratio | 1.58 | 1.17 |
| Nasdaq |
||
| Advancing | 1520 | Up Vol 451 |
| Declining | 1326 | Down Vol 236 |
| Ratio | 1.15 | 1.91
 |
Top Dow stocks are:
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) +2.72%,Â
Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), +0.53% Altria
(
MO |
Quote |
Chart |
News |
PowerRating), +0.49% , IBM
(
IBM |
Quote |
Chart |
News |
PowerRating), +0.36%
Stocks in the news:
Netgear
(
NTGR |
Quote |
Chart |
News |
PowerRating) rose after
reporting earnings of $4.9 million and upped Q3 revenue forecasts to $100
million on introduction of new products and back-to-school demand.
The Washington Post
(
WPO |
Quote |
Chart |
News |
PowerRating)
reported earnings of $84.9 million with revenue rising 16% to $706.9 million on
a big boost from its education division.
Conexant Systems
(
CNXT |
Quote |
Chart |
News |
PowerRating) reported a wider Q3 loss of $74.1 million on revenue
of $267.6 million and guided Q4 revenue to $255 million.
ChevronTexaco
(
CVX |
Quote |
Chart |
News |
PowerRating) earnings more than doubled, to $4.1 billion on revenue of $37 billion.
The company also boosted its capital spending by 8.5
percent in the quarter to $3.8 billion.
Brice Wightman
bricew@tradingmarkets.com