Looking Ahead To Important Data Next Week
Stocks
were mixed on extremely light pre-holiday volume. The revised
consumer sentiment for the month of May was lower at 90.2, 4 points off the
consensus which was also the lowest level since December. The Chicago PMI rose
unexpectedly to 68.0 from previous forecasts of 62.0. Personal income ticked up
0.6% with spending also up 0.3%. Oil prices remained strong — trading near the
$40 level — as demand is expected to pick up on Memorial Day weekend, the
traditional start of the summer season. UBS strategists lowered their
recommended weights on integrated oils, exploration and product and refiners to
underweight on oil price risk reasons.
For the month, the Nasdaq was+3.5%, SPX +1.2% and the Dow was -0.4%
Delta
(
DAL |
Quote |
Chart |
News |
PowerRating) has
hired New York-based law firm Davis Polk & Wardwell for advice on restructuring
its business. Southwest Airlines
(
LUV |
Quote |
Chart |
News |
PowerRating) offered its employees buyout
packages — which
include a combination of cash, travel privileges and health-care benefits.
— in an attempt to manage overstaffing. The company also plans to add 58 new
jets by the end of next year.
Avian flu was found in a
Pilgrim’s Pride
(
PPC |
Quote |
Chart |
News |
PowerRating) chicken breeder flock in Texas. The company said
the discovery would not affect earnings.
Gateway
(
GTW |
Quote |
Chart |
News |
PowerRating)
delayed its scheduled June analyst meeting until September,
citing the need to finalize its
new strategy.
Next week, look for the
Intel mid-quarter update Thursday after the close, ISM also Thursday (10 AM
ET), with consensus 66.0, and the May employment report on Friday;
the consensus for nonfarm payrolls is +215K.
| Dow | -16.75 | 10188.45 |
| S&P 500 | -0.64 | 1120.64 |
| Nasdaq | +2.24 | 1986.74 |
Strong today were Oil
Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.55%, Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +1.32% and
Energy
(
DDX.X |
Quote |
Chart |
News |
PowerRating).
Weak today were Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -1.23%, Amex Gold Bugs
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -0.72%.
Economic news releases today
include preliminary GDP rate that showed a 4.4% growth rate, chain deflator that
rose by 2.6% and initial claims missed expectations dropping 3,000 to 344,000.
10-year Notes were -047
at 109 280
The dollar
was +0.26 at 88.93
Gold was -2.40 at 393.60
Crude Oil was +0.46 at
39.88
Volume was 1.17 billion
on the NYSE, and 1.19 billion on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing | 1914 | Up Vol 522 |
| Declining | 1367 | Down Vol 432 |
| Ratio | 1.40 | 1.20 |
| Nasdaq |
||
| Advancing | 1622 | Up Vol 659 |
| Declining | 1492 | Down Vol 472 |
| Ratio | 1.08 | 1.39 |
Stocks in the news:
Ditech
(
DITC |
Quote |
Chart |
News |
PowerRating) reported earnings of
$8.3 million, beating consensus by 4 cents with revenue $23.1 million..
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating)
raised its second-quarter revenue and profit targets on high demand from memory
manufacturers and made-to-order chip makers in Asia. It now expects to earn 26
cents on revenue of $330 million
Blue Coat Systems
(
BCSI |
Quote |
Chart |
News |
PowerRating) took a hit after
reporting earnings that missed expectations with net income at 1.4 million and
revenue up 79% to $21.1 million.
Coeur d’Alene Mines
(
CDE |
Quote |
Chart |
News |
PowerRating) offered $1.8 billion to
purchase Wheaton River Minerals
(
WHT |
Quote |
Chart |
News |
PowerRating) in a stock and cash deal that
may involve as many as four companies due to previously merger commitments.
Brice Wightman
bricew@tradingmarkets.com