Rita Weakens, Stocks Gain

Stocks gained ground Friday as Rita
weakened.
Crude oil prices fell below
$65/barrel as the hurricane was downgraded to a Category 3 storm.

Alcoa
(
AA |
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guided lower and now sees $0.27 – $0.31 vs. the
consensus $0.44. The stock was downgraded to underperform at Goldman Sachs and
to underweight at Prudential.

Oracle
(
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posted a small increase in profits for Q1; revenue
rose 25% over last year. The stock was downgraded to neutral weight at
Prudential.

3Com
(
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reported 0.11, ex-items, and guided higher.

In a report, CSFB estimates that 72% of all production capacity for
ethylene–used in the manufacture of plastics–was located in the potential path
of Rita.



Strong Sectors
were:  

Airlines
 
(
XAL |
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+2.08%      Healthcare
(
HMO |
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+1.97%       Networkers 
(
NWX |
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+1.40%    



Weak sectors
were:
   
Oil

(
XOI |
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-1.76%      Oil Services
(
OSX |
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-1.64%      Computer Hardware
(
HWI |
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-1.68% 


Dow

-2.46
10,419.59


Nasdaq

+6.06 2116.84


S&P 500

+0.67
1215.29

Stocks in the news:

PalmOne
(
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beat by 0.04 and guided lower. The stock is trading
lower pre-open..

ElectroScientific
(
ESIO |
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beat by 0.04

Starbucks
(
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announced an additional 5 million share stock buyback.

Tibco
(
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beat by a penny.

Lockheed Martin
(
LMT |
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increased the amount of their share repurchase
program, adding 45 million shares. The company also boosted its dividend 20% to
$0.30.

Electroglas
(
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PowerRating)
beat by 0.13.

Brice Wightman

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