Metals And Mining Were Strong Today–Here’s Why

  • September 28, 2004
  • Brice Wightman

Stocks recovered from early
morning weakness to reclaim the 10K level. Lower consumer confidence
and oil prices rising above the $50 could not hold stocks down. Consumer
confidence  fell unexpectedly in
September, to 96.8 from 98.7 in August. Economists surveyed expected an increase
to 99.0. Crude oil prices rose above $50 per barrel and hit an intraday high of
$50.47 before closing the session at $49.90. 

Semiconductor
issues ended lower for the third straight session but did manage to bounce off
the 370 level. Airline issues broke a four day losing streak as airliners turned
green after oil backed off the $50 level. 


Shares of metal and mining companies were strong
performers today. Winners included: Alcoa
(
AA |
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PowerRating), Alcan
(
AL |
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PowerRating), International
Steel Group
(
ISG |
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PowerRating), Nucor
(
NUE |
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PowerRating), and Oregon Steel
(
OS |
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PowerRating).
Rising commodity prices and strong demand from Chinese companies were factors
for the rise.















style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”26%” height=10>Dow 		style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
align=middle width=”41%” height=10>size=2>+88.86		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
align=middle width=”48%” height=10> size=2>10077.40
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”26%” height=12>S&P 500
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
align=middle width=”41%” height=12>+6.54		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
align=middle width=”48%” height=12> size=2>1110.06
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”26%” height=16>Nasdaq 		style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
align=middle width=”41%” height=16>+9.99		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
align=middle width=”48%” height=16> size=2>1869.87

Strong sectors were: Airlines
(
XAL.X |
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PowerRating) +3.32%,Gold

(
XAU.X |
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PowerRating) +3.17%, Health Care
(
HMO.X |
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PowerRating) +2.63%.

Weak were: Semis
(
SOX.X |
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PowerRating)
-0.86%, Networking
(
NWX.X |
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PowerRating) -0.39% and Computer Hardware
(
HWI.X |
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PowerRating)
-0.04%.

10-year Notes was -020 at 113 120


The dosize=2>llar was -0.21 at 88.27


Gold was -0.40 at 413.18

Crude Oil was
+0.36 at 49.64


Volume was 1.7
billion on the NYSE and 1.5 billion on the Nasdaq.


Market breadth was positive.



































style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”14%” height=3>NYSE		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”16%” height=3>Issues		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”47%” height=3>
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”14%” height=10>Advancing 		style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”16%” height=10>2200		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”47%” height=10>Up Vol 118
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”14%” height=30>Declining		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”16%” height=30>1060		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”47%” height=30>Down Vol 54
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”14%” height=13>Ratio 		style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”16%” height=13>2.09		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”47%” height=13>2.18
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”14%” height=17> face=Arial>Nasdaq 		style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”16%” height=17>		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”47%” height=17>
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”14%” height=1>Advancing 		style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”16%” height=1>1907		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”47%” height=1>Up Vol 826
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”14%” height=5>Declining 		style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”16%” height=10>1166		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”47%” height=5>Down Vol 697
style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”14%” height=13>Ratio 		style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”16%” height=13>1.63		 style=”FONT-SIZE: 79%; LINE-HEIGHT: 1.25em; FONT-FAMILY: arial,helvetica,sans-serif”
width=”47%” height=5> size=2>1.18

Stocks in the
News


AtheroGenix
(
AGIX |
Quote |
Chart |
News |
PowerRating) reported positive results for its
anti-atherosclerosis drug.


Valero
(
VLO |
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News |
PowerRating) guided higher for Q3.


Impax Labs
(
IPXL |
Quote |
Chart |
News |
PowerRating) said the FDA gave final approval for its
generic version of OxyContin.


Nabi Biopharmaceuticals
(
NABI |
Quote |
Chart |
News |
PowerRating) announced positive Phase II
results for NicVax, used to treat nicotine addiction.


Starbucks
(
SBUX |
Quote |
Chart |
News |
PowerRating) will raise prices 11 cents a cup, on average,
beginning October 6.


Pepsi Bottling
(
PBG |
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PowerRating) beat by a penny.


Lowe’s
(
LOW |
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PowerRating) said Q3 should beat forecasts.


CSFB started coverage on Google
(
GOOG |
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PowerRating) with a $145 price
target.


Snap On
(
SNA |
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News |
PowerRating) warned for Q3 and full year.


Motorola
(
MOT |
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News |
PowerRating) will cut 1000 jobs and take charges of up to $50
million.


Devon Energy
(
DVN |
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PowerRating) will split its shares 2:1 and will buy back up
to 10% of its stock.


Drexler Technologies
(
DRXR |
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News |
PowerRating) received a $5 million order from the
Dept. of Homeland Security for its LaserCard optical memory cards.


Dell
(
DELL |
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PowerRating) said it saw no reason to change its Q3 guidance.


Solectron
(
SLR |
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PowerRating) will report after the bell; estimates are
0.04.


Brice Wightman