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
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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
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missed by 0.07.

Qualcomm
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raised its outlook for fiscal Q1, now seeing 0.26
to 0.27.

Strong sectors are: Airlines
(
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+2.64%, Pharmaceuticals

(
DRG.X |
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+0.78%, Banks
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+0.59%.

Weak sectors are: Oil Services
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-1.77%, Natural Gas
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-1.19%.

 

Dow +38.06 10,797.49
S&P 500 +3.41 1208.86
Nasdaq +4.79 2,155.70

The dollar is +0.07 at
82.01

Crude Oil is -1.31 at
44.45

Gold is -1.40 to 449.70

ce=”Arial” size=”2″ face=”Arial”>Volume is 878 million on the NYSE and
1.15 billion on the Nasdaq.

Market breadth is positive.

NYSE Issues
Advancing 1954 Up Vol 531
Declining 1284 Down Vol 283
Ratio 2.18 3.72
Nasdaq
Advancing 1732 Up Vol 742
Declining 1331 Down Vol 365
Ratio 1.71 2.73

Stocks in the News

Japan Airlines will buy 30 7E7 Dreamliner jets from Boeing
(
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for
$120 million each.

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

Solectron
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cut its 2005 earnings and revenue forecast.

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

Fannie Mae’s
(
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chief stepped down after major accounting
errors were found, which may force the company to restate earnings.

Brice Wightman