No Bids For EBAY — Here’s Why
Stocks were higher on
the second day of the month and quarter as new money continues to get
put to work. The market continues to digest $50 oil and some traders are finding
stocks attractive in a stronger economy.Â
Vitesse
(
VTSS |
Quote |
Chart |
News |
PowerRating) warned, and now sees a
4th quarter loss.
New stock offerings are running at a rate of $1
billion/day. Two new offerings of note are: Jamdat Mobile
(
JMDT |
Quote |
Chart |
News |
PowerRating),
which sold 5.5 million shares at $16, above the range. Then there’s 51
Job Inc.
(
JOBS |
Quote |
Chart |
News |
PowerRating) known as the “Chinese Monster.com.” JOBS was
priced at $14 last week and closed today at 26.93.
Factory orders fell 0.1% in August, the
first decline in four months. Civilian aircraft orders nose-dived almost 43%.
Charles Schwab
(
SCH |
Quote |
Chart |
News |
PowerRating) is cutting online
commissions by $10, to $19.95.
Positive news boosted the Nasdaq.
Siebel
(
SEBL |
Quote |
Chart |
News |
PowerRating) said preliminary results were good and guided
higher for Q3. Hutchison Technologies
(
HTCH |
Quote |
Chart |
News |
PowerRating) boosted its Q4
estimates. The fourth quarter is historically strong for technology.
AT&T
(
T |
Quote |
Chart |
News |
PowerRating) is cutting at least 5000 more
jobs and will take an asset impairment charge of over $10 billion. The company
had 62,000 employees as of the beginning of the year.
Retail stocks are strong.
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) said its same-store sales will be at the low end of
expectations; the final numbers will be released on Thursday.
Nigerian rebels withdrew a threat to target oil
operations; oil is slightly lower, just under $50.
| Dow | +23.89 | 10216.54 |
| S&P 500 | +3.67 | 1135.17 |
| Nasdaq | +10.20 | 1952.40 |
Strong sectors were: Telecom
(
XTC.X |
Quote |
Chart |
News |
PowerRating) +6.63%, Retail
(
RLX.X |
Quote |
Chart |
News |
PowerRating) +5.17%, Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating)
+5.43%.
Weak were: Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating) -3.53%, Healthcare Providers
(
HMO.X |
Quote |
Chart |
News |
PowerRating) -2.94% and
Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -1.27%.
10-year Notes were -045 at 113 095
The dollar
was +0.88 at 88.44
Gold was -3.60 at 413.60
Crude Oil was -0.26 at 49.72
1.85 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 1936 | Up Vol 923 |
| Declining | 1359 | Down Vol 434 |
| Ratio | 1.64 | 3.01 |
| Nasdaq |
||
| Advancing | 1832 | Up Vol 1099 |
| Declining | 1273 | Down Vol 568 |
| Ratio | 1.67 | 4.10 |
Stocks in the News
Merck
(
MRK |
Quote |
Chart |
News |
PowerRating) was the subject of a positive article in
Barron’s.
Goldman Sachs lowered its earnings estimates on
Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) for
2006-2008.
XM Satellite Radio
(
XMSR |
Quote |
Chart |
News |
PowerRating) added 415,000 subscribers–+75%
gain–in the third quarter.
Apple Computer’s
(
AAPL |
Quote |
Chart |
News |
PowerRating) price target was raised at Merrill Lynch,
from $39 to $44.
Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating) was the subject of a negative Barron’s cover
story.
Symantec
(
SYMC |
Quote |
Chart |
News |
PowerRating)
was cut to “Hold” from “Buy” at Janney Montgomey.
Interstate Bakeries
(
IBCIQ |
Quote |
Chart |
News |
PowerRating) could be a buy. In a Barron’s
article, Duncan Yin of CRT Capital says the shares could be worth $6-$10.
Brice Wightman