The Senate Passed The Energy Bill. Here’s What That Means To You
Stocks are higher on good economic data and lower
oil. Consumer Confidence for June was 105.8, higher than expected, a
three-year high and higher than May’s 103.1 reading. For the first half of 2005,
the S&P 500 is off 1.1%. This compares with +2.6% in 2004 and +10.8% in 2003.
Oil fell below $60. Transports are bouncing off 8 month lows.
The Senate passed the energy bill. The legislation aims to reduce
dependence on foreign oil and provides incentives for construction of
nuclear power plants. Under the bill, by 2020, 10% of all electricity produced
by utilities would have to be from solar, wind and biomass. The House approved a
separate bill and the two versions must be reconciled before it can be sent to
President Bush.
Advanced Micro Devices
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Intel
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IBM is the target of an informal SEC informal probe into the company’s
plan to expense stock options.
Pfizer
(
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PowerRating) said that a review indicated there was no increased
risk of blindness among patients taking Viagra.
XM Satellite Radio
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guest rooms. Separately, UBS raised its
subscriber estimates and price target on the company.
Trader talk: Will Google split?
China is restoring a value added tax on high end steel. US Steel
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is up over 4%.
The FOMC meets this week, with a two day meeting
starting tomorrow. Economists are looking for a quarter point
rise–to 3.25%–and no major change in the policy statement. Specifically, the
words “accommodative” and “measured pace” are expected to remain intact. It is
also quarter end and half-year end. It will be the ninth increase in the past
year.
Strong sectors are:Â Â Airlines Â
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+3.17%Â Homebuilders Â
(
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+1.99%Â Â Retail
(
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    Â
Weak sectors are: Â Gold
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-1.11%Â Â Â Natural Gas
(
$XNG.X |
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PowerRating) -0.74%Â Â Â Oil
Services
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-0.59%Â Â Â Â
| Dow | +71.04 | 10,361.82 |
| Nasdaq | +16.81 | 2062.01 |
| S&P 500 | +8.09 | 1198.78 |
The dollar is +0.47 at
88.92
Crude Oil is -1.29
at59.30.
Gold is -2.90 at 435.90.
685 million on the Nasdaq.
Market breadth is positive.
| NYSE | Issues | |
| Advancing | 2200 | Up Vol 469 |
| Declining | 857 | Down Vol 139 |
| 2.56 | 3.37 | |
| Nasdaq |
||
| Advancing | 1979 | Up Vol 504 |
| Declining | 847 | Down Vol 124 |
| 2.33 | 4.06 |
Stocks in the News
Cubist Pharma
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PowerRating) said Phase III trials of its Cubicin met
primary endpoints; the company said it would file a new drug application with
the FDA before year-end.
Wyeth
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PowerRating) raised guidance and now sees 2.80 – 2.90 for
2005.
Apollo
(
APOL |
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PowerRating) beat by 0.03; for Q3 the company sees $605 – $620
in revenue.
Paychex
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PowerRating) beat expectations
by 0.03.
Morgan Stanley raised its view on the integrated oil industry, including
ExxonMobil
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PowerRating) and Royal Dutch
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PowerRating).
Seagate was downgraded at Goldman.
Brice Wightman