Stocks gain, Big Blue beats estimates

Stocks rose Monday, with
strong performances by GM and Altria leading the blue chips.

General Motors
(
GM |
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missed by 1.11 but the
stocks rallied on the news that the company came to agreement with its unions to
cut healthcare costs. The Supreme Court rejected a government appeal of a $280
billion case against the tobacco industry. Altria
(
MO |
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rose $4.30 to
close at $74.96.   

Crude oil rose on news of a new hurricane,
closing at $64.36, +1.73. 

Citigroup
(
C |
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reported 1.38, beating by
0.39.

Boeing
(
BA |
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an order for 20 787 jets
from International Lease Finance.


Mattel
(MAT)
missed by 0.06.

Hasbro
(
HAS |
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missed by 0.04 and missed
on revenues.

After the close, IBM
(
IBM |
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reported
$1.26, beating by 0.13. Net income was also strong, but revenues were light at
$21.53 billion.

Rambus
(
RMBS |
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beat by 0.02, ex-items,
with quarterly earnings rising almost 40%; revenues also beat estimates.

Novellus
(
NVLS |
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was in-line; margins
were slightly lower than expected. Net income fell 64%.

Chiron
(
CHIR |
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PowerRating)
guided lower, saying it
will deliver fewer doses of Fluviron this year than last year.


Strong sectors
were:   Gold
(
XAU |
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Chart |
News |
PowerRating)
  +2.42%         
Internet

(
GIN |
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PowerRating)
+1.51%     
Healthcare

(
HMO |
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PowerRating)
+2.48%           



Weak sectors
were:
  
Pharmaceuticals

(
DRG |
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PowerRating)

-0.92%      Biotech  
(
BTK |
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Chart |
News |
PowerRating)
  -0.50%      
 Airlines

(
XAL |
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PowerRating)
-0.44% 


Dow

+60.76
10,348.10


Nasdaq

+5.47 2070.30


S&P 500

+3.53 1190.10

More stocks on the move:

Newell Rubbermaid
(
NWL |
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PowerRating)
guided both Q3
and 2005 higher.

Stem Cells
(
STEM |
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PowerRating)
invented techniques to derive embryonic cells in
mice, The New York Times Reports.

Elan
(
ELN |
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PowerRating)
said that a Tysabri safety evaluation indicated no new
cases of the potentially fatal brain disorder which caused the drug to be
withdrawn last February.

Wachovia
(
WB |
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PowerRating)
beat by 0.02, ex-items.

Transocean
(
RIG |
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PowerRating)
announced a $2
billion share buyback.

Supervalue
(
SVU |
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PowerRating)
reported 0.41 after
all charges, beating by 0.07.

Wal-Mart
(
WMT |
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PowerRating)
reiterated its 2%-4%
October sales increase.

Emulex
(
ELX |
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PowerRating)
was downgraded at
Citigroup to hold from buy.

Brice Wightman

Â