Where Are Rates Going? Find Out What This Big Bond Trader Says…
Stocks are higher on tame inflation data.
The major indices are all trading to five-week highs.
The CPI for April was 0.5%; ex-food/energy, unchanged.
Year over year, it rose 2.2%, a little less than expectations. Crude inventories
rose 4.3 million barrels, much more than expected, and the highest level since
March 1999. Gas inventories also rose more than expected, +1.1 million barrels.
Hewlett Packard
(HPQ)
beat by a penny and revenues ($21.6 billion) also beat slightly. The company
lowered Q3 guidance.
Abercrombie & Fitch (ANF)
beat by 0.03. Q1 profit rose 38%.
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating) beat by a penny but said orders were
down and lowered Q3. Profits fell 18% and new orders for the three months ending
May 1 fell 30%. CIBC downgraded the stock.
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) unveiled a modified instant messaging service which
allows free worldwide PC-to-PC calls without a phone.
Merrill Lynch upgraded technology to marketweight from underweight.
Pimco’s Bill Gross sees 10-year rates between 3 – 4.5% over the next
five years.
Federal Reserve Board Governor Ed Gramlich is resigning effective
August 31. Greenspan is planning to leave in January.
Strong sectors are: Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) +3.86%
Gold
(
$HUI.X |
Quote |
Chart |
News |
PowerRating) +2.91% Chemicals
(
$CEX.X |
Quote |
Chart |
News |
PowerRating)
+2.19%
Weak sectors are: Oil Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating)
-1.41% Natural Gas
(
$XNG.X |
Quote |
Chart |
News |
PowerRating) -0.23%
Dow | +81.65 | 10,413.53 |
Nasdaq | +14.6 | 2018.76 |
S&P 500 | +7.57 | 1181.37 |
The dollar is -0.13 at
86.08
Crude Oil is -1.02 at
49.65
Gold is +1.30 at 420.20
ce=”Arial” size=”2″ face=”Arial”>Volume is 884 million on the NYSE and
795 million on the Nasdaq.
Market breadth is positive.
NYSE | Issues | |
Advancing | 2398 | Up Vol 631 |
Declining | 707 | Down Vol 150 |
3.39 | 4.20 | |
Nasdaq |
||
Advancing | 1914 | Up Vol 538 |
Declining | 890 | Down Vol 190 |
2.15 | 2.83 |
Stocks in the News
Nordstrom
(
JWN |
Quote |
Chart |
News |
PowerRating) beat and raised its 2005 view. Q1 profit rose 52%.
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) holds its annual meeting today.
Boise Cascade slashed the price of its IPO and now sees $17-$19, down
from $24-$26.
Yum Brands’
(
YUM |
Quote |
Chart |
News |
PowerRating) same store sales rose 4%–analysts were
expecting between 2-4%.
Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating) said all of its business are on track.
Ross Stores
(
ROST |
Quote |
Chart |
News |
PowerRating) beat by 0.03.
Brice Wightman