Record High Oil Sinks Stocks
Stocks fell–with the Dow losing triple
digits–as crude made a record high close.
Crude closed above $61 for the first time ever, ending at
61.28. Traders are concerned Tropical Storms Cindy and Dennis may disrupt Gulf
of Mexico operations and specifically refiners’ ability to boost pre-winter fuel
supplies. Unleaded gas and heating oil closed at record highs as well.
The ISM non-manufacturing index was 62.2 (analysts expected 58.4) in June vs.
58.5 in May. Oil is near $61.
United Health
(
UNH |
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Chart |
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PowerRating) is buying Pacific Healthcare for
$8.14 billion.
OSI Pharmaceuticals
(
OSIP |
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PowerRating) said the FDA has accepted a New Drug
application for Tarceva plus gemcitabine chemotherapy for pancreatic cancer
treatment. In additions, Tarceva was granted priority review classification.
Zion’s Bancorp will acquire Amegy Bancorp for $1.7 billion.
Making historic highs yesterday were: REITs, S&P Smallcap index, S&P Midcap
Oil index, HMO index and the Hospital index.
London won the bid for the 2012 Olympics and becomes the only city
ever to host the games three times, previously in 1948 and 1908.
Alcoa
(
AA |
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PowerRating) reports tomorrow after the close; estimates are 0.46.
GM’s employee discount campaign was a big hit. Here are employee discount
programs offered by other companies:
Starbucks: A pound of coffee each week for employees
working 20+ hours.
Anheuser Busch: Two cases of beer each month.
General Electric: 20% discount on appliances.
Google: Free lunch, every day.
Blockbuster: Free rentals.
Source: CNN.com
Strong sectors were:Â Â Â Healthcare Providers
(
$HMO.X |
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Chart |
News |
PowerRating)
+1.62% Â Â Â Â Â Semis
Â
(
$SOX.X.X |
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Chart |
News |
PowerRating)
+1.04% Â Â
 Gold
(
XAUI.X |
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Chart |
News |
PowerRating) +0.87%Â
    Â
Weak sectors were: Â Natural Gas
Â
(
$XNG.X.X |
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Chart |
News |
PowerRating)
-1.44%Â Â Â Â Oil Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) -1.24%Â Â Â Â Â Â Oil
(
$XOI.X |
Quote |
Chart |
News |
PowerRating)
-1.32% Â
| Dow | -101.12 | 10,270.68 |
| Nasdaq | -10.10 | 2068.65 |
| S&P 500 | -10.05 | 1194.94 |
The dollar was -0.05 at
90.37
Crude Oil was +1.69 at
61.28
Gold was -0.10 at 423.10
1.573 billion on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1366 | Up Vol 585 |
| Declining | 1887 | Down Vol 1092 |
| 1.38 | 1.86 | |
| Nasdaq |
||
| Advancing | 1260 | Up Vol 693 |
| Declining | 1740 | Down Vol 765 |
| 1.38 | 1.10 |
Stocks in the News
UBS raised June estimates on Intel
(
INTC |
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PowerRating), to 0.33 from 0.32.
JP Morgan raised estimates on Motorola
(
MOT |
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PowerRating).
Marvel Enterprises
(
MVL |
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Chart |
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PowerRating) was downgraded to neutral at JP Morgan.
Zoll Medical
(
ZOLL |
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Chart |
News |
PowerRating) warned for Q3; the company now expects
breakeven vs 0.10.
Brice Wightman