Rates, market up
Stocks rallied Tuesday after the FOMC raised Fed funds rate by 1/4 point
to 4.25%.
 It was the 13th straight hike; rates are now
at the highest levels in 4 1/2 years. In its statement, the Fed dropped its
reference to policy accommodation. The Fed also said longer term inflation
expectations remain contained, expansion appears solid, and further measured
policy firming is likely necessary. Core inflation was relatively low in
recent months.
November retail sales were slightly weaker than expected at +0.3%.
Business inventories for October rose 0.3%, slightly less than
expected.
Carter Worth, Chief Market Technician at Oppeneheimer said
“Basically the market has been in a very low-beta period for the better part
of three weeks–we’ve traded dead sideways in the S&P following a very steep
October/November advance and today we simply are at the top of that sideways
range. For one to read anything into it on the positive side, we’d have to
have follow-through tomorrow and on from there, but inconclusive as it stands
right now.”
General Electric
(
GE |
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PowerRating) reaffirmed its 2006 guidance of $1.92 –
$2.02 and 10% sees revenues of $165 billion.
Lehman Bros.
(
LEH |
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reported $2.76 vs. the $2.64 estimate and beat on revenues.
Best Buy
(
BBY |
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$1.06 – $1.16 vs. the $1.16 Reuters estimate. The stock was downgraded to
neutral at CSFB.
Proctor & Gamble
(
PG |
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said earnings will come in at the tope end of the range, topping consensus..
Strong sectors were:Â Â PharmaceuticalsÂ
(
DRG |
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PowerRating) +1.67%Â Â Â Â Â Â BanksÂ
(
BKX |
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PowerRating)
+1.31%Â Â Â Â Utilities
(
UTY |
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PowerRating) +1.26%Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Weak sectors were:Â Â
 Oil ServicesÂ
(
OSX |
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PowerRating) -1.53%Â Â Â Â Â Â Airlines
(
XAL |
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PowerRating) -1.24%Â Â Â Â
 Computer Technology
(
HWI |
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PowerRating) -0.52%Â Â Â Â Â Â Â Â Â
|
|
+55.95 | 10,823.72 |
| +4.05 | 2265.00 | |
| +7.00 | 1267.43 |
More stocks on the move:
Boeing
(
BA |
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PowerRating) (PowerRating)
increased its dividend by 20%, to $0.30/quarter.
CNBC, citing Standard & Poor’s, said a General Motors
(
GM |
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PowerRating) bankruptcy “is not a far-fetched possibility.” GM said it had no
plans to file for bankruptcy.
Rohm & Haas
(
ROH |
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PowerRating) guided higher, to 0.65 – 0.70 for Q4. The
company will cut 400 jobs in a restructuring
Citigroup downgraded both Nucor
(
NUE |
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PowerRating) and U.S. Steel
(
X |
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PowerRating)
to hold from buy.
Brice Wightman
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