This Billionaire Likes GM. What Does He Know?

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Stocks are higher on news of a large tender offer by
billionaire Kirk Kerkorian.

Kirk Kirkorian’s Tracinda Corporation is making a tender offer for 28
million shares of General Motors
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at $31. Kirkorian, 87, is buying
the shares “for investment purposes” and already owns 22 million shares; after
the tender offer he will own 8.84% of GM.

The Treasury Department is considering whether or not to reissue the
30-year bond. The decision will be announced at the August 10 meeting. 10-year
rates moved up slightly. Trader talk: 30-year fixed mortgages may be slightly
higher. Adjustable rate mortgages may become more popular.

The ISM  index was 61.7 in April vs 63.1 March.

Nike
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is pulling its shoes from Sears
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stores.

Electronic Arts
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posted a lower profit–down 91%.

Strong sectors are:  Insurance
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+2.38%  
Brokers

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+2.27%  Gold
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+1.97%

Weak sectors are:   Software
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-0.34%      

Dow +69.17 10,326.12
Nasdaq +11.65 1944.62
S&P 500 +6.65 1167.82

The dollar is -0.48 at
84.03

Crude Oil is +0.05 at
49.55

Gold is -0.30 at 427.60

ce=”Arial” size=”2″ face=”Arial”>Volume is 835 million on the NYSE and
863 million on the Nasdaq.

Market breadth is positive.

NYSE Issues
Advancing 2204 Up Vol 805
Declining 910 Down Vol 192
2.42 4.19
Nasdaq
Advancing 1797 Up Vol 573
Declining 1069 Down Vol 245
1.68 2.33

Stocks in the News

Devon Energy
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missed by 0.10.

Noble
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beat by 0.28. Q1 profits rose 29%.

Maxim Integrated Products
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reported a higher profit, but
missed estimates.

Cigna
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beat by a wide margin.

Beckman Coulter
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missed and warned.

American Tower
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is acquiring Spectrasite
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in
a $3.1 billion stock deal.

Brice Wightman