Stock Up On Lower Oil, Stronger Dollar
Stocks were higher as traders scooped up bargains in
an oversold market. End of quarter window dressing and lower crude
helped out. The dollar rallied to a 5-month high vs. the yen.
According to ISI Group, the eight Fed tightenings in the last 35 years
resulted in recession five times, including the savings and loan crisis in 1990
and the 2000 Nasdaq collapse. The Fed is widely expected to increase rates again
at its next meeting.
A study by The National Retail Foundation said that half the taxpayers who
are getting a refund are planning to pay down debt. Others uses cited were
vacations and making a major purchase. According to the IRS, refunds are
averaging $2259 this year.
A UBS survey indicates investor optimism is at a 4-month low.
AmerisourceBergen
(
ABC |
Quote |
Chart |
News |
PowerRating) lowered Q2 and ’05 guidance by a wide
margin. Trading down in sympathy were: Cardinal Health
(
CAH |
Quote |
Chart |
News |
PowerRating) and
McKesson
(
MCK |
Quote |
Chart |
News |
PowerRating).
(
SHLD |
Quote |
Chart |
News |
PowerRating) is the new symbol for Sears Holdings, the company created
by the Sears/KMart merger.
The Wall Street Journal reports that 12 AIG executives have
been subpoenaed and that was likely severing ties with Hank Greenberg.
Barron’s said Tiffany
(
TIF |
Quote |
Chart |
News |
PowerRating) could be worth as much as $40 to $60
on a takeover basis or at least $40 if management can fix the company’s
problems.
The FDA approved GlaxoSmithKline’s
(
GSK |
Quote |
Chart |
News |
PowerRating) once-per-month Boniva
osteoporosis drug.
Near the close, trading was halted at the Philadelphia Stock Exchange due to
an elevator fire.
After the close HCA Inc [HCA|HCA} guided much higher.
Strong sectors were: Â Internet CommerceÂ
(
$ECM.X |
Quote |
Chart |
News |
PowerRating)
+1.38% Â Â Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
+1.36%Â Â Â Oil Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) +1.31%
Weak sectors were:Â Â Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
-1.28%Â Â Â Â Gold
(
$HAUI.X |
Quote |
Chart |
News |
PowerRating) -0.97%Â Â
| Dow | +42.93 | 10,485.80 |
| Nasdaq | +1.46 | 1992.52 |
| S&P 500 | +2.94 | 1174.37 |
The dollar was +0.45 at
84.56
Crude Oil was -0.89 at
53.95
Gold was +1.10 at 425.50
1.47 billion on the Nasdaq
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1523 | Up Vol 791 |
| Declining | 1781 | Down Vol 713 |
| 1.16 | 1.10 | |
| Nasdaq |
||
| Advancing | 1410 | Up Vol 705 |
| Declining | 1669 | Down Vol 643 |
| 1.18 | 1.09 |
Stocks in the News
Millenium Pharmaceuticals
(
MLNM |
Quote |
Chart |
News |
PowerRating) said the FDA granted expanded
approval for its cancer drug Velcade.
Ligand’s
(
LGND |
Quote |
Chart |
News |
PowerRating) cancer treatment disappointed.
UBS downgraded General Motors
(
GM |
Quote |
Chart |
News |
PowerRating)Â to ‘reduce.’
Morgan Keegan cut estimates on Taser
(
TASR |
Quote |
Chart |
News |
PowerRating) for 2005 and 2006.
Brice Wightman