Oil Workers Strike, Protesting High Gas Prices!

• June 9, 2004
• Brice Wightman

Stocks are
flat with April US wholesale inventories that declined 0.1%
for the first time since August 2003. Analysts were
expecting a 0.5% increase.  OmniVision
Technologies
(
OVTI |
Quote |
Chart |
News |
PowerRating) tanked after delaying its fourth-quarter earnings
release and said it may have to restate 2003 and 2004 results. Coca-Cola’s
(
KO |
Quote |
Chart |
News |
PowerRating) #2 executive Steve Heyer said he is stepping down after being passed
over for the top job. He joined the company in March 2001 from AOL Time Warner
and held titles of President and COO before taking on the #2 job.

 

A study by the center for
Studying Health System Change found that in 2003 medical costs rose 7.4% with
health insurance premiums up 13.9%. Prices for inpatient and outpatient hospital
care rose 8%, the biggest one-year increase since the government began tracking
the figure. Spending on prescription drugs rose 9.1%, down from 13.2% in 2002 as
patients increased use of cheaper generic drugs.

 

To protest higher gas prices,
Nigerian oil workers began a strike, but no
disruption in output has been reported. A Nigerian court ordered the government
to cut prices  to what they were in February in exchange fro the unions
calling off the strike, but many stations are defying the order. Nigeria is the
world’s seventh biggest oil exporter with production of nearly 2.5 million
barrels per day.

 

The ECB is expected to raise rates tomorrow from 4
1/4% to 4 1/2%

Paris’ city counsel passed an Anti-SUV resolution and could ban the SUV in 18
months, according to city Deputy Mayor Denis Baupin.

 

Dow	-36.33	10396.50
S&P 500	-6.69	1135.57
Nasdaq	-20.55	2003.86

Strong today are REITs
(
DJR.X |
Quote |
Chart |
News |
PowerRating) +0.24% Telecoms
(
XTC.X |
Quote |
Chart |
News |
PowerRating)
+0.09%, Chemicals
(
CEX.X |
Quote |
Chart |
News |
PowerRating) +0.07%.

Weak today are Amex Gold
Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) -3.56%,  Gold and Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -3.45%.

 

Economic news release today
included Wholesale inventories for April that dipped 0.1%,

10-year Notes are -120 at 108 260

The dollar is +1.07 at 89.63

Gold is -6.00 at 385.00

Crude Oil is -0.16 at 37.10

Volume is 590,000 million on the NYSE, and 699,000 million on the Nasdaq.

Market breadth is negative.

 

NYSE	Issues
Advancing	963	Up Vol 155
Declining	2097	Down Vol 404
Ratio	2.18	2.61
Nasdaq
Advancing	820	Up Vol 188
Declining	2058	Down Vol 500
Ratio	2.52	2.66

Top Dow stocks are:

SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating) +2.93%, Verizon
(
VZ |
Quote |
Chart |
News |
PowerRating), +2.69%,
Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating), +0.82%, Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) +0.73%.

Stocks in the news:

Apparel-maker Tommy Hilfiger
(
TOM |
Quote |
Chart |
News |
PowerRating) reported earnings of $26.9 million
on sales of $510.1 million on stronger-than-expected European sales and
favorable currency translations.

Clear Channel Communications
(
CCU |
Quote |
Chart |
News |
PowerRating) settled with the FTC and agreed to
pay $1.75 million for airing indecent materials.

Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating) raised its dividend by 11% to 41 cents a share,
payable August 20, to holders as of July 20.

Aspect Medical
(
ASPM |
Quote |
Chart |
News |
PowerRating) said it sold 500,000 shares of its common stock
to Boston Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating) for $8.1 million under previous stock
purchase agreements.

Brice Wightman

bricew@tradingmarkets.com