Stocks Close Lower

Stocks were lower as crude oil reversed to close
higher.  Early in the session,
the EIA reported better-than-expected inventory data, sending crude lower. 
Later in the day, however, oil reversed, snapping a losing streak and sending
stocks lower. 

On the economic front, jobless claims fell by 1,000 to 319,000 last week. (full
story) The Labor Department said last week’s data would possibly be revised
upward.  The 4-week moving average rose 2,000 to 318,500–the highest level
in seven weeks.

After the close, Texas Instruments
(
TXN |
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PowerRating) raised guidance and now
sees Q3 EPS of 0.36 – 0.38. (full
story) Yellow Roadway
(
YELL |
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PowerRating) lowered its Q3 guidance, saying
Katrina would knock off about 0.05 on Q3 earnings. (full
story)  Lockheed Martin
(
LMT |
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PowerRating) will acquire Coherent Technologies
(
COHR |
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PowerRating). (full
story)  Intel
(
INTC |
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PowerRating) said it expects to see year-to-year
growth in double digits and sees gross margins in Q3 to be about 60%.

Hovnanian
(
HOV |
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PowerRating) missed by 0.02. Earnings rose 32% from a year ago.
HOV fell $4.10. The homebuilders are weak today, with KB Homes
(
KBH |
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PowerRating)
lost $1.20, Toll Brothers
(
TOL |
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PowerRating) fell $1.58 and Beazer
(
BZH |
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PowerRating)
was off $2.19.

Sears Holdings’
(
SHLD |
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PowerRating) Q2 profit rose 4.5% but missed on
revenues; the 0.98 reported was not comparable to the $1.36 estimate. (full
story)

Strong Sectors were:   Gold 

(
XAU |
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PowerRating)
+1.70%    
 Semis
(
SOX |
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PowerRating) +1.14%      Airlines 

(
XAL |
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PowerRating)
+0.37%    

Weak sectors were:    Retail 
(
RLX |
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PowerRating)
-1.30%      Insurance 

(
IUX |
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PowerRating)
-0.92%     Utilities

(
UTY |
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News |
PowerRating) -0.90%

Comverse Technology
(
CMVT |
Quote |
Chart |
News |
PowerRating) beat by a penny and also beat on
revenues. (full
story)

Cooper Companies
(
COO |
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News |
PowerRating) beat by 0.18 and issued upside guidance. (full
story)

Take Two Interactive
(
TTWO |
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PowerRating) was in-line but guided lower. The Q3
loss doubled from the same period last year. Citigroup reiterated its bullish
outlook on the stock.

Barr Pharmaceuticals
(
BRL |
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News |
PowerRating) beat by 0.05, ex-items. (full
story)

The New York Post reports eBay
(
EBAY |
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PowerRating) is in talks to buy
Skype for about $5 billion. EBAY is trading off 1.39 to 39.06.

Brice Wightman