Will GOOG Be Added To The SPX?
Stocks are lower as crude again made new highs,
hitting $48 per barrel as violence flared in Iraq. Disappointing earnings from
Synopsis
(
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PowerRating) weighed on tech stocks.
Google began trading on the Nasdaq under
the symbol "GOOG." The stock came at $85, the low end of the range.
The first trade was $100.01. The company offered 19.6 million shares, raising
$1.66 billion. At the offering price, analysts say, GOOG would trade at a 73
P/E, lower than Yahoo’s 86 and slightly higher than eBay’s 73. Google’s market
cap is similar to that of Ford and Caterpillar. Google is the third largest IPO
on the Nasdaq, behind Charter Commnication’s $2.3 billion and Genuity’s $1.9
billon. Founders Sergey Brin and Larry Page should each gain about $43 million
from the offering.
At press time, GOOG was trading at $103.66. A
rumor is circulating that the stock may be added to the S&P 500.
Initial jobless claims for the week of 8/14 fell
3,000 to 331,000. It was the third straight week that claims fell. The 4-week
moving average fell to 337,000
The SEC continues to investigate the timing of
the Playboy article in which the co-founders were interviewed. Last year, there
were 23 IPOs, for $4.8 billion. Year to day, there have been 157 IPOs for $29
billion.
Are the Olympics good for business?
Greece has spent $7.5 billion so far on the Olympics, 40% over budget.
Montreal is still paying for the 1976 games, held in that city. New York
is campaigning for the 2012 Olympics.
Look for the semiconductor book to bill number
after the close.
| Dow | -32.23 | 10050.92 |
| S&P 500 | -2.15 | 1093.02 |
| Nasdaq | -3.64 | 1827.73 |
Strong today are: Gold
(
XAU.X |
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PowerRating) +3.59%, Retail
(
RLX.X |
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PowerRating) +0.43%, Oil
(
XOI.X |
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Chart |
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PowerRating) +0.37%,
Weak are: Airlines
(
XAL.X |
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Chart |
News |
PowerRating) -1.07%, Healthcare
(
HMO.X |
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News |
PowerRating)
-0.82%, Utilities
(
UTY.X |
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Chart |
News |
PowerRating) -0.63%.
10-year Notes are +015 at 112 255
The dollar
is -0.29 at 87.79
Gold is +2.50 at 406.40
Crude Oil is +0.60 at
46.95
Volume is 612 million on
the NYSE and 723 million on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 1486 | Up Vol 292 |
| Declining | 1600 | Down Vol 255 |
| Ratio | 1.07 | 1.14 |
| Nasdaq |
||
| Advancing | 1315 | Up Vol 297 |
| Declining | 1560 | Down Vol 386 |
| Ratio | 1.18 | 1.29 |
Stocks in the News
Caci International
(
CACI |
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PowerRating) reported a 56% rise in quarterly profit yesterday.
Synopsys
(
SNPS |
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PowerRating) reported lower earnings
yesterday and guided lower.
Nortel
(
NT |
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PowerRating) will cut 3500 jobs – or 10% of
its workforce — to boost profits.
Limited Brands
(
LTD |
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PowerRating) posted a sharply
higher profit.
Navistar
(
NAV |
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Chart |
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PowerRating) reported good earnings
that beat estimates.
Carl Icahn got FTC approval to buy up to
$500 million — 12% — of Mylan Labs
(
MYL |
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PowerRating).
Winn-Dixie
(
WIN |
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PowerRating) said efforts to
reverse declining market share are paying off.
Amazon is buying Joyo.com. The company
operates retail web sites in China.
US Airways
(
U |
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PowerRating) said that employees must
agree to wage and benefits cuts or the airline will be liquidated.
Brice Wightman