Will The Fed Stop Raising Interest Rates?
Stocks are higher as weak economic data boosts
prospects that the Fed may soon stop raising interest rates.
The ISM Index for May was 51.4, slightly less than expected. This is
the sixth consecutive lower ISM number. Construction spending for April
rose 0.5%, in-line.
The ECB cut the European growth forecast to 1.4% from 1.6%. Despite this,
the European markets are all outperforming the US markets. Year to date, here
are the results:
France        +8.3%
Germany    +5.3%
U.K.           +3.3%
S&P 500Â Â Â Â Â -1.7%
Nasdaq       -4.9%
The 10-year note continues under 4%. Some analysts believe this will be good
for stocks.
CSFB upped its price target on Google
(
GOOG |
Quote |
Chart |
News |
PowerRating)
to $350, citing momentum and the company’s core advertising business.
Hovnanian
(
HOV |
Quote |
Chart |
News |
PowerRating) beat by a penny; Q2 profits rose 51%; the company
raised guidance for 2005.
Kohl’s
(
KSS |
Quote |
Chart |
News |
PowerRating) May comps were higher and the company affirmed Q2
guidance.
Strong sectors are:Â Gold
(
$HUI.X |
Quote |
Chart |
News |
PowerRating) +2.42%Â Â Â
Computer Hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating) +1.93%Â Â Â Â Internet
(
$GIN.X |
Quote |
Chart |
News |
PowerRating)
+1.91%Â Â
| Dow | +115.27 | 10,582.75 |
| Nasdaq | +25.41 | 2093.63 |
| S&P 500 | +13.63 | 1205.13 |
The dollar is +0.16 at
87.92
Crude Oil is +0.53 at
52.50
Gold is -0.20 at 416.40
784 million on the Nasdaq.
Market breadth is positive.
| NYSE | Issues | |
| Advancing | 2439 | Up Vol 552 |
| Declining | 694 | Down Vol 99 |
| 3.51 | 5.57 | |
| Nasdaq |
||
| Advancing | 198 | Up Vol 615 |
| Declining | 848 | Down Vol 105 |
| 4.28 | 5.85 |
Stocks in the News
JP Morgan upgraded Visteon
(
VC |
Quote |
Chart |
News |
PowerRating).
Identix
(
IDNX |
Quote |
Chart |
News |
PowerRating) won a contract with the state of Utah for its Live
Scan Systems.
Caci International
(
CACI |
Quote |
Chart |
News |
PowerRating) was awarded a $10 million Navy
contract.
General Mills
(
GIS |
Quote |
Chart |
News |
PowerRating) was upgraded at Bear Stearns.
Goldman upgraded Best Buy
(
BBY |
Quote |
Chart |
News |
PowerRating) to outperform from inline.
Boutique firm Evercore Partners is planning an IPO. Clinton Treasury
official Roger Altman is a partner. Using Greenhill’s
(
GHL |
Quote |
Chart |
News |
PowerRating)
valuation, Evercore could be worth $700 million.
Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) and Wyeth
(
WYE |
Quote |
Chart |
News |
PowerRating) received expanded FDA
approval for Enbrel.
Prudential upped its price target on Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating) to $100.
CononoPhillips
(
COP |
Quote |
Chart |
News |
PowerRating) is splitting 2:1.
Mylan
(
MYL |
Quote |
Chart |
News |
PowerRating) is higher after Carl Icahn said his $20/share
offer stands. He already own 9.8% of the company. Today, the company FDA
conditional approval letter for its next generation hypertension drug.
Engineered Support Systems
(
EASI |
Quote |
Chart |
News |
PowerRating) missed for Q2.
Fairchild
(
FCS |
Quote |
Chart |
News |
PowerRating) lowered Q2 guidance.
Brice Wightman
Â
Â
Â
Â