Stocks Mixed On Mixed Data

Stocks
continue to drift downward on higher core CPI prices — up 0.3% vs. the 0.2%
consensus.
CPI was 0.2% vs 0.3% expected. Industrial production rose
by 0.8% with production capacity up at its highest level since 2001, to 76.9%.
The Michigan Sentiment Index remained unchanged at 94.2, below market
expectations. Oil prices hit a 21-year high with US light crude trading above
$41 a barrel, the highest level that it has ever been on the NYMEX.

BEA Systems
(
BEAS |
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tumbled after reporting a lower-than-expected licensing revenue of $120.2
million. Total revenue was up 11% to $262.6 million with net income at $25.3
million. Nortel
(
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said they received a federal grand jury subpoena
for financial statements and related records.

Dow -9.35 10001.34
S&P 500 -0.96 1095.47
Nasdaq -19.07 1906.41

Strong today are Amex Gold
Bugs

(
HUI.X |
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+1.83%, Natural Gas
(
XNG.X |
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+1.61% Oil
Index

(
XOI.X |
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+1.50%, Energy
(
DXE.X |
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+1.41%.

Weak today are Disk Drives
(
DDX.X |
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-3.55% Hardware
(
HWI.X |
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-2.53%.

Economic news releases today:
Inventories that rose sharply to 0.7%, CPI that was at 0.2%, with the Core CPI
at a strong 0.3%. Industrial Production levels exceeded expectations at a 0.8%
increase and Capacity Utilization at 76.9%. Michigan Sentiment Index remained
unchanged at 94.2.

10-year Notes are +185
at 108 250

The dollar
is +0.37 at 91.78

Gold is +2.20 at 377.10

Crude Oil is +0.30 at
41.30

Volume is 633,000,000 on
the NYSE, and 766,000,000 on the Nasdaq.

Market breadth is negative.

NYSE Issues
Advancing 1630 Up Vol 256
Declining 1519 Down Vol 331
Ratio 1.07 1.27
Nasdaq
Advancing 951 Up Vol 130
Declining 1965 Down Vol 600
Ratio 2.06 4.61

Top Dow stocks are:

Altria
(
MO |
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, +2.19%
at 49.93, Exxon Mobil
(
XOM |
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, +1.15% at 43.20, Procter & Gamble
(
PG |
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+0.71% at 106.02, Pfizer
(
PFE |
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, +0.54% at 35.42.

Stocks in the news:

Merix
(
MERX |
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lowered its fourth-quarter earnings forecasts from 19 cents to a loss of 3 cents
on weak demand from a major customer.

Cisco’s
(
CSCO |
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board has
authorized a $5 billion stock buyback, bringing the program to $25 billion.

Analog Devices

(
ADI |
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reported earnings of $152.6 million on revenue of
$678.5 million on strong demand for chips for consumer electronics.

Chinadotcom
(
CHINA |
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is lower after
it reported earnings that missed by a penny and extended its deadline to
complete its merger with Ross
(
ROSS |
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.

Brice Wightman

bricew@tradingmarkets.com