Stocks Fall For A Third Day

Despite positive news at the open for Dow component
Pfizer, stocks fell for a third day. The drug sector was a standout
after

Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) won a
court ruling which blocked generic competition in Lipitor until 2011.
PFE traded 141 million shares.  PFE’s
PowerRating is 7. Merck
(
MRK |
Quote |
Chart |
News |
PowerRating)
was upgraded at Deutsche Bank to buy from hold, with a $36 target.
MRK’s
PowerRating is 7.

The Dow fell 39 points, the Nasdaq pulled back 1.3% on the day and the Semis
fell 2.29%. Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating) fell 5%.
General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) fell 3% to an 18-year
low.

Phil Roth, Chief Technical Market Analyst at Miller Tabak & Co.,
said “I think we’re getting what we didn’t get last week. Normally the second
and third weeks of December are soft–last week it was actually hanging in
there. The reason it’s soft is you get the last phases of tax selling and other
year-end portfolio adjustments normally prior to Christmas. People seem to
waiting, reluctant to do it last week, but I think they did it this week.”

Homebuilders were weak after a gauge of
homebuilder sentiment fell. The NAHB/Wells Fargo Housing Market Index slid to 57
in December–the lowest since April of 2003. 

Bank of America

(
BAC |
Quote |
Chart |
News |
PowerRating) and MBNA
(
KRB |
Quote |
Chart |
News |
PowerRating) were both
downgraded to neutral weight from overweight at Prudential.
BAC‘s
PowerRating is 7 and KRB‘s
PowerRating is 7.

Circuit City

(
CC |
Quote |
Chart |
News |
PowerRating) reported a larger-than-expected
profit and reversed a year-ago loss.
CC’s


PowerRating is 6.

Flextronics

(
FLEX |
Quote |
Chart |
News |
PowerRating) was upgraded at Morgan Stanley, to overweight. FLEX’s
PowerRating is 7.