The Thanksgiving Trade, And Why It Doesn’t Work Anymore
Stocks were higher,
with
the S&P making a three-year high.
Campbell’s Soup
(
CPB |
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News |
PowerRating) beat by 0.04; revenues rose 9%.
The company backed earlier guidance.
Krispy Kreme
(
KKD |
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News |
PowerRating) reported a Q3 loss of (0.04); estimates were for a gain of 0.13.The company
said it will not provide Q4 or FY05 guidance.
Google
(
GOOG |
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News |
PowerRating) said Kleiner Perkins Caufield filed to sell 19
million shares. An 8-K file last week indicated Google execs filed to sell
shares.
Apple
(
AAPL |
Quote |
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News |
PowerRating) got a $100 price target from Piper Jaffray, roughly
doubling the prior target. The stock made a 4-year high today.
PC growth is expected to go from 12% this year to to 9% in 2005.
The dollar continues weak, which benefits many technology and multinational companies, as they are
the most dependent on foreign revenues. Here are a few companies with the
percent of revenues they receive from foreign sources: Texas Instruments, 81%;
AMD, 79%; QCOM, 78% and Intel 74%. On the flip side, a weak dollar can lead to
capital flight, higher inflation and interest rates, as well as a lower return
on investments.
It used to be that the Thanksgiving trade was “buy Tuesday close, sell on
Friday.” From 1952-1987 this strategy worked fairly well, but it’s had a mixed
record since 1987, probably due to too much publicity.
Test results to determine if a cow has Mad Cow disease are due in today at 6
PM ET. Last Thursday, a cow tested “inconclusive” for Mad Cow.
The IMF trimmed its 2005 global growth forecast
to 4% from 4.3%.
Las Vegas Sands will list on the NYSE, symbol LVS.
After the close, TiVo
(
TIVO |
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News |
PowerRating) reported a
Q3 loss of (0.33), better than expectations for a loss of (0.44). Revenue was
$38 million, down 11%. The company added 419,000 new subscribers in the third
quarter.
This day in history:
1955 RCA paid $35,000 for the rights to Elvis’ music
1963 JFK assassinated
1988 Stealth bomber unveiled
| Dow | +32.51 | 10489.42 |
| S&P 500 | +6.90 | 1177.23 |
| Nasdaq | +14.56 | 2085.19 |
Strong sectors were:
Utilities
(
UTY.X |
Quote |
Chart |
News |
PowerRating) +1.57%, Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating) +1.56%,
Insurance
(
IUX.X |
Quote |
Chart |
News |
PowerRating) +1.48%.
The dollar was -0.13 at 83.18
Gold was +2.60 to 448.60
Crude Oil was -0.39 at 48.50
1.89 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2209 | Up Vol 838 |
| Declining | 1134 | Down Vol 427 |
| Ratio | 1.94 | 1.96 |
| Nasdaq |
||
| Advancing | 1797 | Up Vol 1116 |
| Declining | 1333 | Down Vol 669 |
| Ratio | 1.45 | 1.66 |
Stocks in the News
Rigel Pharma
(
RIGL |
Quote |
Chart |
News |
PowerRating) received disappointing results from early
stage trials of a hepatitis treatment.
Mylan Labs
(
MYL |
Quote |
Chart |
News |
PowerRating) said that buyout talks with Carl Icahn are not in
the company’s best interests.
IBM won a military/aerospace contract from Honeywell worth several
hundred million dollars.
MGM Mirage
(
MGG |
Quote |
Chart |
News |
PowerRating) could reach $72 by 2006, according to a
Barron’s article.
Pulitzer
(
PTZ |
Quote |
Chart |
News |
PowerRating) said it had hired a financial advisor to help it
explore a possible sale of the company.
Trump hotels and casinos filed for bankruptcy.
Brice Wightman