Stocks End Mixed

Stocks were mixed Thursday as the market continues
to digest the damage from Katrina. Data showed that manufacturing
slowed unexpectedly. (full
story) In addition, traders fear that high fuel costs will
take a toll on consumer spending. The ISM Index was 53.6 vs 57.0
consensus. Construction spending was unchanged.

Traders are speculating that the Fed may halt its rate hikes due to
the economic impact of Katrina. Gasoline was 6.8% higher; crude closed at
$69.47, +0.53.

Jobless claims for the week ending 8/27 rose 3,000 to 320,000, the
highest since early July. The 4-week moving average rose 1,250 to 316,750. The
current data does not reflect Hurricane Katrina.

Personal income rose 0.3% in July; spending rose 1%. The

personal savings rate is now the lowest since records began in 1959.

Novartis
(
NVS |
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(
CHIR |
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Lehman Brothers upgraded the refiners: Sunoco
(
SUN |
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Tesoro
(
TSO |
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(
FTO |
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ConocoPhillips
(
COP |
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The manufactured homes group was strong:
(
CAV |
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(
FLE |
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(
CHB |
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(
MODT |
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(
SKY |
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(
PHHM |
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manufactured homes.

After the close, H&R Block
(
HRB |
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story) Plato Learning
(
TUTR |
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guidance. Applied Signal
(
APSG |
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(
NWRE |
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story)

On Friday morning, look for nonfarm payrolls in the 190-200K neighborhood.

Strong Sectors were:  Oil 

(
XOI |
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+3.57%    
 Gold 
(
XAU |
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+3.55%       Biotech

(
BTK |
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+2.24%

Weak sectors were:  Airlines 
(
XAL |
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-5.76%      Semis 

(
SOX |
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-1.08%

Costco’s
(
COST |
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Sharper Image’s
(
SHRP |
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than expected.

Pier One’s
(
PIR |
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Wet Seal’s
(
WTSLA |
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expected.

XM Satellite Radio
(
XMSR |
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(
SIRI |
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upgraded top outperform at Wachovia.

Starbucks
(
SBUX |
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Brice Wightman