Lower Oil Sends Dow Higher

Stocks are higher on lower oil as the Dow extends
its 3 1/2 year highs. The EIA said crude inventories rose by 2
million barrels, more than expected. Analysts actually expected stockpiles to
fall.

GDP in Q3 was +4%–ahead of expectations– vs 3.3% in Q2.

Research in Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating) beat by 0.03 and guided Q1 higher;
revenue was $365.9 vs $364 consensus. Blackberry shipments were less than
expected; the stock traded down after hours. Applied Signal
(
APSG |
Quote |
Chart |
News |
PowerRating)
missed by 0.07.

Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) raised its outlook for fiscal Q1, now seeing 0.26
to 0.27.

Strong sectors are: Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) +2.64%, Pharmaceuticals

(
DRG.X |
Quote |
Chart |
News |
PowerRating)
+0.78%, Banks
(
BIX.X |
Quote |
Chart |
News |
PowerRating) +0.59%.

Weak sectors are: Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) -1.77%, Natural Gas
(
XNG.X |
Quote |
Chart |
News |
PowerRating)
-1.19%.

 

Japan Airlines will buy 30 7E7 Dreamliner jets from Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) for
$120 million each.

Bank of America cut its estimates on several retailers, including FD, KSS,
MAY, ANN, LTD, and TJX.

Solectron
(
SLR |
Quote |
Chart |
News |
PowerRating) cut its 2005 earnings and revenue forecast.

Microsoft will pay a $666 million fine to the EU.

Fannie Mae’s
(
FNM |
Quote |
Chart |
News |
PowerRating) chief stepped down after major accounting
errors were found, which may force the company to restate earnings.

Brice Wightman