Q4 Starts With A Bang–Here’s How
Stocks rallied Friday,
with the Nasdaq up 2.4% and at a two-month high.
The Dow managed triple digit gains and
all three indices posted their biggest gains in six weeks.
An new quarter and a tech upgrade got things
started this morning. Applied Materials
(
AMAT |
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PowerRating) was upgraded at JP
Morgan.
Economic data was mixed.
The S&P and NDX both closed above their 200-day moving averages. Â
The ISM was 58.5% in September, in-line with estimates, but down from August’s
59.0%
Construction spending rose 0.8% in August, hitting an all-time high. Residential
projects had a strong showing. The University of Michigan’s consumer sentiment
was 94.2, the lowest in four months and lower than expected.
Welcome to the fourth quarter! New money typically comes in at the beginning of
a new quarter, so today’s rally is not altogether unexpected. Semis were strong
today, after being laggards last quarter. In Q3, semis lost 20%.
Peoplesoft ousted CEO Craig Conway, renewing speculation that Oracle’s
takeover bid may succeed. Founder and chairman Dave Duffield was named CEO. PSFT
is up 8%.
Merck
(
MRK |
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PowerRating) traded up 1% after yesterday’s sharp decline.
Good news for Starbucks? A new study reveals that
even one cup of coffee per day can mean you’re hooked and that stopping can
produce withdrawal symptoms such as headaches.
Faced with high inventories and falling market share, General Motors and
Ford are offering new sales incentives. GM will offer up to $6000 cash
rebates on most SUVs, and Ford will offer up to $2000 on some 2005 models.
US Airways and pilots agreed on a new
labor contract.
| Dow | +112.38 | 10192.65 |
| S&P 500 | +16.92 | 1131.50 |
| Nasdaq | +45.36 | 1942.20 |
Strong sectors were: Computer TechnologyÂ
(
XCI.X |
Quote |
Chart |
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PowerRating) +18.86%, Semis
(
SOX.X |
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PowerRating)
+17.71% Insurance
(
IUX.X |
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PowerRating)
+12.09%.
Weak: Gold
(
XAU.X |
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Chart |
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PowerRating) -0.89%.
10-year Notes were -150 at 112 05
The dollar
was +0.33 at 87.69
Gold was -0.10 at 418
Crude Oil was -0.14 at 49.50
1.82 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2444 | Up Vol 1361 |
| Declining | 831 | Down Vol 215 |
| Ratio | 2.94 | 6.33 |
| Nasdaq |
||
| Advancing | 2179 | Up Vol 1530 |
| Declining | 901 | Down Vol 282 |
| Ratio | 2.41 | 5.42 |
Stocks in the News
Constellation Brands’
(
STZ |
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PowerRating) net income more than doubled.
EResearch
(
ERES |
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PowerRating) lowered its guidance.
Redback Networks
(
RBAK |
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Chart |
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PowerRating) guided lower.
US Airways
(
UAIRQ |
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Chart |
News |
PowerRating) and pilots agreed on a new labor contract.
Proctor & Gamble
(
PG |
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Chart |
News |
PowerRating) will make an electric toothbrush with
toothpaste in it.
Brice Wightman