Who Benefits From A Floating Yuan?
Stocks are lower after China made an important
announcement regarding its currency.
China said it would no longer peg the yuan and will tie its currency
to a basket of currencies, a possible first step to letting the yuan float
freely. The yuan is up 2%. The move is long anticipated, as China’s trading
partners–especially the U.S.–have put pressure to let the yuan float. The move
could reduce competition for U.S. firms and raise import prices. A stronger yuan
could also increase exporters’ sales.
Jobless claims for the week of 7/16 fell 34,000 to 303,000. The 4-week moving
average fell 3250 to 318,000.
Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating) beat by 0.07 and raised guidance. Caterpillar is
one stock that may benefit from the yuan devaluation.
SBC Communications
(
SBC |
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Chart |
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PowerRating) reported 0.43, beating by 0.06; revenues
were also higher. Q2
Ebay
(
EBAY |
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News |
PowerRating) beat by 0.03 and raised guidance. Sales topped $1
billion.
United Parcel Service
(
UPS |
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PowerRating) beat by 0.02 and guided in-line.
Strong sectors are: Â Gold
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +1.29% Â Â Â Â Â Â Â Â Â
Internet
(
$GIN.X |
Quote |
Chart |
News |
PowerRating) +0.82%
Weak sectors are: Â Healthcare
(
$HMO.X |
Quote |
Chart |
News |
PowerRating) -6.42%Â Â Â Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) -2.92%Â Â Â
Semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) -1.74% Â Â
| Dow | -58.67 | 10,630.48 |
| Nasdaq | -12.70 | 2175.87 |
| S&P 500 | -8.28 | 1226.92 |
The dollar is -0.10 at 89.24
Crude Oil is
-0.72 at 57.30
Gold is +1.00
at 424.10
907 million on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 834 | Up Vol 162 |
| Declining | 2230 | Down Vol 607 |
| 2.67 | 3.74 | |
| Nasdaq |
||
| Advancing | 843 | Up Vol 322 |
| Declining | 1937 | Down Vol 509 |
| 2.29 | 1.58 |
Stocks in the News
Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating) beat by 0.04. The company plans to buy back $2
billion in shares in 2005; in Q2 it bought back $1 billion.
Schering Plough
(
SGP |
Quote |
Chart |
News |
PowerRating) beat by 0.08
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) beat by 0.03 and boosted. Q3 profit rose 15%.
Allstate
(
ALL |
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Chart |
News |
PowerRating) beat by 0.15 and raised guidance. Net income rose
11%.
DR Horton
(
DHI |
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PowerRating) reported 1.17 vs 1.09 estimate and raised its 2005
forecast.
Washington Mutual
(
WM |
Quote |
Chart |
News |
PowerRating) beat by 0.12.
Brice Wightman