Stocks Are Turning Around…Here’s Why

Stocks are moderately higher today despite poor economic data and a weak
report by Amazon.com. 
Equities were sharply lower but managed
to stage a sharp turnaround after the weekly oil inventory report.

March durable goods orders fell -2.8%, more than expected. It was the largest
drop since September 2002. Ex-transportation, it fell 1%.

The weekly 10:30 oil inventory report showed a 5.5
million barrel build in crude supplies and a 300,000 barrel drawdown in gas .
Analysts were expecting a 650K rise in crude and a 1 million barrel drawdown in
gas.

Amazon
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reported 0.22, after charges, missing by a penny,
missing on margins. The company raised revenue guidance by 1% but some analysts
were looking for higher guidance and the stock traded lower by 4% after the
close.

Boeing’s
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BA |
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profits rose, beating the street, but revenues were
lighter than expected.

Verizon
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beat by 0.03; revenue rose 6.5%. Results were strong
in wireless.

Infospace
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guided lower.

Newmont Mining
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missed by 0.18.

Amerada Hess
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AHC |
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beat by 0.07, at $2.12/share.

Kerr-McGee’s
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beat by 0.22; earnings more than doubled.

Conoco-Phillips
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beat by a wide margin.

Phelps Dodge
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PD |
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beat estimates, reporting $3.83.

Strong sectors are : Healthcare
(
$HMO.X |
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+2.29%  
Insurance

(
$IUX.X |
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+1.62%  Banks
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$BIX.X |
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0.99%

Weak sectors are:  Gold & Silver
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$XAU.X |
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-4.28%   Gold Bugs
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$HUI.X |
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-2.60%   Internets
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$INX.X |
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-2.62%

Dow  +24.97 10,175.96
Nasdaq +2.81 1930.25
S&P 500 +3.41 1155.15

The dollar is +0.11 at
84.05

Crude Oil is -1.65 at
52.25

Gold is -1.90 at 434.10

ce=”Arial” size=”2″ face=”Arial”>Volume is 812 million on the NYSE and
936 million on the Nasdaq.

Market breadth is negative.

NYSE Issues
Advancing 1577 Up Vol 371
Declining 1556 Down Vol 429
1.01 0.86
Nasdaq
Advancing 1274 Up Vol 459
Declining 1611 Down Vol 467
0.79 0.98

Stocks in the News

Corinthian Colleges
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was in-line but guided lower.

XM Satellite Radio
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XMSR |
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posted a narrower than expected loss,
beating by 0.12.

Engelhard
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EC |
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beat by 0.07.

Wellpoint
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beat by 0.05 and raised Q2 guidance. The company
announced a 2:1 split payable to shareholders of record May 13.

Constellation Energy
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beat by 0.07.

Brice Wightman