Up 70% After Hours, Here’s Why
Stocks started the week
off on the down side. Higher crude prices and bearish broker calls on the
tech sector dragged the markets lower.
Morgan Stanley cut the semis to “in-line.” Meanwhile Prudential lowered
networking issues to
“neutral.” New home sales rose 9.4%
in August, more than expected. The Dow Jones Industrials closed below the
psychological 10K level to end the day at 9988.54. Â
Oil was back in focus today as crude prices inched back up towards the
$50 level. November crude hit an intraday high of $49.75 per barrel before
closing at $49.64 for the session.
According to Standard & Poor’s, the Q3
earnings estimate for the S&P 500 was 16.42/share, up almost 14% from a year
ago. Hurricanes were involved in 38% of earnings warnings this quarter.
Insurance company analysts estimate the recent hurricane damage in Florida at
between $4-$8 billion.
Apparel maker Tommy Hilfiger
(
TOM |
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PowerRating)
fell nearly 22% today. A federal grand jury subpoenaed documents and are looking
whether the company shifted income around to avoid paying taxes.Â
In after hours trading, AtheroGenics
(
AGIX |
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PowerRating)
shot up 70%. The drug maker announced positive interim results from it’s
CART-2 trials.Â
| Dow | -5870 | 9988.54 |
| S&P 500 | -6.59 | 1103.52 |
| Nasdaq | -19.60 | 1859.88 |
Strong sectors are: Gold
(
XAU.X |
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Chart |
News |
PowerRating)
+0.42% +1.07%, Oil
(
OIX.X |
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News |
PowerRating) +0.39%, Utility
(
UTY.X |
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Chart |
News |
PowerRating)
+0.22%.
Weak are: Airlines
(
XAL.X |
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Chart |
News |
PowerRating) -4.00%, Networking
(
NWX.X |
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News |
PowerRating)
-2.31% and Internet
(
ECM.X |
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Chart |
News |
PowerRating) -1.92%.
10-year Notes was +075 at 113 140
The dollar
was -0.11 at 88.48
Gold is -0.40 was 410.30
Crude Oil was +0.76 at 49.64
1.3 billion on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1128 | Up Vol 380,454 |
| Declining | 2133 | Down Vol 1,168,896 |
| Ratio | 1.89 | 3.07 |
| Nasdaq |
||
| Advancing | 867 | Up Vol 258,354 |
| Declining | 2211 | Down Vol 1,045,520 |
| Ratio | 2.55 | 4.04 |
Stocks in the News
Lockheed Martin
(
LMT |
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Chart |
News |
PowerRating) won a $2.1 billion Navy satellite contact.
Wal-Mart
(
WMT |
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News |
PowerRating) was upped to “Buy” at Bank of America.
Fannie Mae
(
FNM |
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Chart |
News |
PowerRating) may be forced to keep billions of dollars in cash
on hand while it corrects accounting problems.
Alliance Gaming
(
AGI |
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Chart |
News |
PowerRating) will take a 0.09 charge against Q1 earnings.
Walgreen
(
WAG |
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Chart |
News |
PowerRating) beat by a penny.
Allergan’s
(
AGN |
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News |
PowerRating) psoriasis treatment will not be approved by the
FDA on the basis of data received.
Nastech Pharmaceutical
(
NSTK |
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Chart |
News |
PowerRating) peptide YY 3-36 obesity drug is in
Phase I development, The company will receive $5 million from Merck and be
eligible to receive up to $131 million as part of a co-development pact with
Merck.
Westar Energy
(
WR |
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PowerRating) cut its 2004 forecast.
Blue Nile
(
NILE |
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News |
PowerRating) was downgraded to neutral at JP Morgan.
Vascular Solutions
(
VASC |
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Chart |
News |
PowerRating) got FDA approval to market its Langston
catheter.
Brice Wightman