Rita 5, Dow -103
Stocks fell sharply again
Wednesday as Rita gathers strength in the Gulf and traders fearing further
devastation. Rita was upgraded to a
Category 5 hurricane. It was the third consecutive loss for the indices,
with the Dow closing below its 200-day moving average for a second day in a row
and the SPX making a three-week low. Traders are also digesting yesterday’s Fed
comments; many had hoped for a softer approach regarding interest rates.
Retailers were weak after Avon
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guided lower. Wal-Mart saw its lowest close since 1999. Airlines
were also sharply lower on the prospect of
higher fuel prices, reaching a new 2-year low.
Merrill Lynch upgraded Intel
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to Buy and downgraded Advanced Micro Devices
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AMD |
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Morgan Stanley
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PowerRating) reported $1.21,
after items. Earnings fell 83%, impacted by $1 billion in costs associated with
the planned sale of its aircraft leasing unit.
After the close,
Bed Bath & Beyond
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reported earnings that beat by a penny.
Strong Sectors were: Gold
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XAU |
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+3.37% Gold
(
XOI |
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PowerRating) +1.64%
Natural Gas
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+1.37%
Weak sectors were:
Airlines
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-3.75% Chemicals
(
CEX |
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PowerRating) -2.33%
|
|
-103.49 | 10,378.03 |
| -24.69 | 2106.64 | |
| -11.14 | 1210.20 |
Stocks in the news:
Fedex
(
FDX |
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PowerRating) reported 1.21, ex-items.
Earnings fell 83% on costs associated with its planned sale of its aircraft
leasing unit.
Autozone
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AZO |
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PowerRating)
missed by 0.24, ex-items.
Conagra
(
CAG |
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PowerRating) beat but revenues were
light. The company reaffirmed fiscal 2006 guidance.
Qualcomm
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QCOM |
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PowerRating) raised Q4 revenue and
earnings guidance, now seeing 0.32 – 0.33 vs. the 0.30 consensus.
New York Times Co.
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PowerRating) warned for Q3
and now forecasts 0.43 – 0.44, down from 0.45 – 0.46.
Carmax
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PowerRating) beat by 0.02, beat on
revenues and guided higher for Q3.
Brice Wightman