The Stock Known As The ‘Chinese Monster.com’
Stocks were higher on
the second day of the month and quarter as new money continues to get
put to work. The market continues to digest $50 oil and some traders are finding
stocks attractive in a stronger economy.Â
Vitesse
(
VTSS |
Quote |
Chart |
News |
PowerRating) warned, and now sees a
4th quarter loss.
New stock offerings are running at a rate of $1
billion/day. Two new offerings of note are: Jamdat Mobile
(
JMDT |
Quote |
Chart |
News |
PowerRating),
which sold 5.5 million shares at $16, above the range. Then there’s 51
Job Inc.
(
JOBS |
Quote |
Chart |
News |
PowerRating) known as the “Chinese Monster.com.” JOBS was
priced at $14 last week and closed today at 26.93.
Factory orders fell 0.1% in August, the
first decline in four months. Civilian aircraft orders nose-dived almost 43%.
Charles Schwab
(
SCH |
Quote |
Chart |
News |
PowerRating) is cutting online
commissions by $10, to $19.95.
Positive news boosted the Nasdaq.
Siebel
(
SEBL |
Quote |
Chart |
News |
PowerRating) said preliminary results were good and guided
higher for Q3. Hutchison Technologies
(
HTCH |
Quote |
Chart |
News |
PowerRating) boosted its Q4
estimates. The fourth quarter is historically strong for technology.
AT&T
(
T |
Quote |
Chart |
News |
PowerRating) is cutting at least 5000 more
jobs and will take an asset impairment charge of over $10 billion. The company
had 62,000 employees as of the beginning of the year.
Retail stocks are strong.
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) said its same-store sales will be at the low end of
expectations; the final numbers will be released on Thursday.
Nigerian rebels withdrew a threat to target oil
operations; oil is slightly lower, just under $50.
| Dow | +23.89 | 10216.54 |
| S&P 500 | +3.67 | 1135.17 |
| Nasdaq | +10.20 | 1952.40 |
Strong sectors were: Telecom
(
XTC.X |
Quote |
Chart |
News |
PowerRating) +6.63%, Retail
(
RLX.X |
Quote |
Chart |
News |
PowerRating) +5.17%, Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating)
+5.43%.
Weak were: Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating) -3.53%, Healthcare Providers
(
HMO.X |
Quote |
Chart |
News |
PowerRating) -2.94% and
Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -1.27%.
10-year Notes were -045 at 113 095
The dollar
was +0.88 at 88.44
Gold was -3.60 at 413.60
Crude Oil was -0.26 at 49.72
1.85 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 1936 | Up Vol 923 |
| Declining | 1359 | Down Vol 434 |
| Ratio | 1.64 | 3.01 |
| Nasdaq |
||
| Advancing | 1832 | Up Vol 1099 |
| Declining | 1273 | Down Vol 568 |
| Ratio | 1.67 | 4.10 |
Stocks in the News
Merck
(
MRK |
Quote |
Chart |
News |
PowerRating) was the subject of a positive article in
Barron’s.
Goldman Sachs lowered its earnings estimates on
Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) for
2006-2008.
XM Satellite Radio
(
XMSR |
Quote |
Chart |
News |
PowerRating) added 415,000 subscribers–+75%
gain–in the third quarter.
Apple Computer’s
(
AAPL |
Quote |
Chart |
News |
PowerRating) price target was raised at Merrill Lynch,
from $39 to $44.
Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating) was the subject of a negative Barron’s cover
story.
Symantec
(
SYMC |
Quote |
Chart |
News |
PowerRating)
was cut to “Hold” from “Buy” at Janney Montgomey.
Interstate Bakeries
(
IBCIQ |
Quote |
Chart |
News |
PowerRating) could be a buy. In a Barron’s
article, Duncan Yin of CRT Capital says the shares could be worth $6-$10.
Brice Wightman