Where The Money Flowed
Despite better-than-expected retail news and a declining jobless claims
number, the Dow slipped for a fourth day, down 26.16 to 10067.93 on less than average
volume. The Nasdaq fluctuated between positive and negative all session, closing
up 2.21 to 2047.10 on low volume. The S&P 500 eked out a 1.36 gain, closing
at 1156.49.
Jobless claims came in at 395,000, the lowest since the Sept. 11 attacks.
Same-store sales exceeded already low expectations, which helped the retail
sector, one of the strongest sectors today. Biotech and pharmaceuticals were also
strong, as money flowed into companies that haven’t participated in the
three-month old rally. The Semiconductor Index
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574.61.
IBM reports Q4 earnings this week; IBM dropped 2.35 to 122.14. There was, at
one point, a rumor floating that IBM may issue a warning, and even report after
the bell today. Also rumored is that Cisco
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Cisco
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CE Unterberg Towbin cut Juniper
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a “buy,” citing valuation and market loss to rival Cisco. JNPR closed
at 20.38, down .74.
Cigna
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charge. CI fell .71 to 92.50.
Pacific Sunwear
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it expects to earn .06 better than expectations. The Gap
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higher, saying it would lose less money than analysts expected. GPS closed at
16.26, up 1.74.
Falling interest rates helped boost MBNA’s
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to 35.05. Washington Mutual, also a lender, rose to a two-month high, before
closing at 35.02, up .52.
Philadelphia Fed President Anthony Santomero said the U.S. Federal Reserve
has more room to cut interest rates further; that the unemployment numbers might
be seasonally distorted.
Merrill Lynch Asset Management’s Robert Doll predicts the US recession will
end and Wall Street will see “high single-digit” returns this year.
General Motors
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plans layoffs and restructuring. GM lost .17 to 50.07, and F fell 1.02 to 15.29.
Bonds were strong, with 30-year bonds and 10-year notes both making two-month
highs.
Rambus
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reports later today.