Next Week Will Be A Big One…Here’s What’s On Tap
Stocks were
mixed with the
transports near 5-year highs.
Consumer confidence was 95.6 for June,
average retail gasoline prices dipped 6 cents and revised GDP numbers showed a
3.9% growth rate. US Treasury Secretary John Snow warned that the increasing
budget deficit from overspending poses a potential threat to the economy. The
Russell rebalancing took effect today… names added included: TFSM, NILE, ORBZ,
MCHX. Deletions include: TSCM, EELN, and ROXI.
Oil workers in Norway are going
back to work after an 8-day strike and production is expected to be back to 100%
tomorrow. Norway is the world’s 3rd largest oil exporter.
Titan
(
TTN |
Quote |
Chart |
News |
PowerRating) shares
fell after rumors that Lockheed Martin
(
LMT |
Quote |
Chart |
News |
PowerRating) may walk away from the
planned acquisition amid its bribery investigation. The $1.64 billion deal was
contingent upon Titan agreeing to bribery charges by the end of day today.
In the biggest week so far this year for IPOs, 13 companies came to market,
raising $1.9 billion. Outdoor merchandising retailer Cabela
(
CAB |
Quote |
Chart |
News |
PowerRating)
started trading today, priced of $20 a share; CAB closed at 26.03. More than 1/3
of the IPOs this year were priced below the range, while 20% saw prices reduced.Â
Next week, traders will be
asking the following questions: Is the economy moderating or heating up? Is a 25
bp rise in rates already priced in the market? The Fed meets 6/29 and
6/30. And what will happen with the June 30 Iraq handover? Don’t forget,
Wednesday is month end and also the end of the second quarter. And finally, this
time next week, look for earnings guidance to be in focus.
| Dow | -71.97 | 10371.84 |
| S&P 500 | -6.33 | 1134.32 |
| Nasdaq | +9.90 | 2025.47 |
Strong today were Networking
(
NWX.X |
Quote |
Chart |
News |
PowerRating) +1.59%. Disk Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) +1.43%, Oil
Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.14%.
Weak today were
Pharmaceuticals
(
DRG.X |
Quote |
Chart |
News |
PowerRating) -1.79%, Oil
(
OIX.X |
Quote |
Chart |
News |
PowerRating) -0.81%,
Banks
(
BKX.X |
Quote |
Chart |
News |
PowerRating) -0.79%.
Economic news release today:
GDP for Q1 revised down to 3.9%, Chain Deflator that rose 2.9% and Michigan
Sentiment for June at 95.6.
10-year Notes were +005
at 108 315
The dollar
was +0.13 at 88.86
Gold was +0.80 at 402.20
Crude Oil was -0.48 at
37.45
Volume was 1.74 billion
on the NYSE, and 1.93 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 1778 | Up Vol 636 |
| Declining | 1482 | Down Vol 663 |
| Ratio | 1.19 | 1.04 |
| Nasdaq |
||
| Advancing | 1803 | Up Vol 1271 |
| Declining | 1276 | Down Vol 629 |
| Ratio | 1.41 | 2.02 |
Stocks in the news:
Nike’s
(
NKE |
Quote |
Chart |
News |
PowerRating) profit rose 24% and
completed a $1 billion share buyback which began in 2000.
Campbell Soup
(
CPB |
Quote |
Chart |
News |
PowerRating) announced 400
job cuts and said it will roll out a new line of products.
Credit Suisse First Boston’s
(
CSR |
Quote |
Chart |
News |
PowerRating)
CEO John Mack is stepping down after three years at the firm as part of a
management shake up. Oswald Grubel will replace Mack and become the CEO.
Nanogen
(
NGEN |
Quote |
Chart |
News |
PowerRating) rose 10% after
receiving a patent for “Methods and Apparatus for Detecting Variants Utilizing
Base Stacking.”
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) got a boost after
Morgan Stanley raised its price target to $60, citing optimism in its new
management and 7E7 jetliner.
Brice Wightman
bricew@tradingmarkets.com