Stocks get a lift on Rita downgrade

Stocks rose Thursday after
Rita was downgraded to a Category 4 hurricane and oil prices fell. Crude fell
to $66.50/barrel.

Jobless claims rose 8,000 to 432,000–the
highest level since July 2003. The Conference Board’s index of leading
indicators
fell 0.2% in August

After the close, 3Com
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reported
0.11, ex-items, and guided higher. PalmOne
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beat by 0.04 and
issued in-line guidance. The stocks traded lower after hours.
ElectroScientific
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beat by 0.04 Starbucks
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announced an additional 5 million share stock buyback. Alcoa
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guided lower and now sees $0.27 – $0.31 vs. the consensus $0.44. Tibco
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beat by a penny. Lockheed Martin
(
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increased the amount of their
share repurchase program, adding 45 million shares. The company also boosted its
dividend 20% to $0.30. Electroglas
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beat by 0.13.



Strong Sectors
were:  

Retail

(
RLX |
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+2.69%      Airlines 
(
XAL |
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+1.97%      Chemicals 
(
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+0.56%    



Weak sectors
were:
   Oil
Services

(
OSX |
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-1.29%       Oil
(
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-1.10%       Gold
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-0.93% 


Dow

+44.02
10,422.05


Nasdaq

+4.14 2110.78


S&P 500

+4.42
1214.62

Stocks in the news:

Fedex
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reported 1.21, ex-items.
Earnings fell 83% on costs associated with its planned sale of its aircraft
leasing unit.

Autozone
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missed by 0.24, ex-items.

Conagra
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beat but revenues were
light. The company reaffirmed fiscal 2006 guidance.

Qualcomm
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raised Q4 revenue and
earnings guidance, now seeing 0.32 – 0.33 vs. the  0.30 consensus.

New York Times Co.
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warned for Q3
and now forecasts 0.43 – 0.44, down from 0.45 – 0.46.

Carmax
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beat by 0.02, beat on
revenues and guided higher for Q3.

Brice Wightman