Two Reasons…
The indices closed slightly in the green today
amid earnings concerns from American Express and Merck.
The Dow gained 6.44 to 9894.81; the Nasdaq rose
9.47 to 2011.40; and the S&Ps inched up .30 to 1137.06.
American Express
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many as 6500 workers, citing a drop in bookings since Sept. 11. A weakened
economy had already forced customers to cut back on credit card purchases and
travel, and the company had lost $1 billion earlier this year on investments.
AXP fell .84 to 33.42.
Selling in Merck
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today, taking other drugs companies with it. Merck fell 2.18 to 58.52. Investors focused selling on
companies who have upcoming expiring patents. Bristol Myers Squibb fell
after antitrust charges were filed in several states, charging the company with
keeping inexpensive alternatives to anxiety medication BuPar off the market.
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fell 3.30 to 50.45. Schering-Plough
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Pharmaceutical Index
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Utilities dropped in more Enron fallout, with the
Utility Index
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52-week low.
Calpine
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might not be able to meet earnings forecasts. The company borrowed money to
build new plants, which now, because of the economic slowdown, may not be
needed. CPN gained .41 to finish at 15.90.
Natural gas pipeline company El Paso Corp.
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fell after saying that 2001 profits would fall below analysts’ estimates. The
company plans to raise cash via asset sales and clean up their balance sheet to
reassure investors after the Enron debacle.
Home builders were strong, as Toll Brothers
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and Hovnanian
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TOL closed up 7.78% at 42.52.
A poll by Consensus Inc. shows 58% of investors
are bullish, the highest level since the peak of 66% in May.
After the bell, Applied Materials
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announced it will cut 10% of its workforce.
The Prudential Financial (PRU) IPO prices tonight.