This Company Missed Estimates–So Why Is The Stock Up 2.5%?

Stocks are slightly higher ahead of Friday’s options
expiration, with the Dow and S&P 500 near 3-month highs.

Housing starts rose .2% to an annualized rate of 2 million, but at a slower
pace than expected. Building permits
fell 4.6% in May, the largest decline since last June. Jobless claims for the
week ending 6/11 rose 1000 to 333,000; the 4-week moving average is 335,000.

Goldman Sachs
(
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revenues were below expectations. Trading/principal revenues fell 22%, fixed
income revenue fell 20% and investment banking revenue was also lower. GS is up
2.5%.

Pfizer
(
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(
MICU |
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for $1.9 billion.

General Motors
(
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unless the union agrees to sot-cutting concessions, The Wall Street Journal
reports. GM is off 2.75%.

Marin Capital is closing and returning $1.7 billion to investors. The
fund, which was down 2% last year, is closing because of weak prospects in the
convertible bond and credit arbitrage markets. Hedge Fund Bailey Coates
has gone from $1.3 billion at its peak to $470 million today. The firm was faced
with forced liquidations in April and May and is entirely in cash now and
talking to investors about raising additional funds.

You think housing prices have soared in the United States? Take a look
at the 3-year appreciation in these countries (source: The Wall Street
Journal):

South Africa    +95%

China             
+68%

Spain             
+63%

Australia          +56%

U.K.               
+50%

Bulgaria           +50%

Strong sectors are:  Gold
(
$HUI.X |
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+2.94%    Computer Hardware
(
$HWI.X |
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+1.75%     Biotech  
(
$BTK.X.X |
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+1.69%

Weak sectors are:   Drugs

(
$DRG.X |
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(
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-0.21%
 

Deutsche Bank upgraded Ford
(
F |
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IPO news.

MedImmune
(
MEDI |
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vaccine.

Integrated Device Technology
(
IDTI |
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Circuit Systems
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ICST |
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Yum Brands’
(
YUM |
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earlier guidance.

CSFB cut the tobacco sector to ‘neutral.’ Morgan Stanley said the
selloff in the sector is overdone.

Wyeth
(
WYE |
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Potash
(
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The New York Times
(
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Carnival
(
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JM Smucker
(
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