Will This Be A Slow Quarter For Google?

Stocks are mixed after wholesale prices fell to a
level not seen in two years. The PPI fell -0.6%, more than
expected. Core PPI rose 0.1%, which was slightly weaker than expected. 
Energy prices fell 3.5%, the biggest drop since April 2003. Retail sales
for May fell -0.5%; ex-auto, -0.2%.

Lehman Bros.
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was also slightly better as low interest rates helped fixed income trading.

General Motors
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on healthcare concessions. GM is up 3%.

Susquehanna sees a flat Q2 (“not a blow-out quarter”) for Google
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but maintained a positive outlook longer-term.

Best Buy
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raised 2006 guidance. Profits jumped 49%.

OPEC ministers are gathering in Vienna for their meeting this week.
OPEC President Al-Sabah said the cartel must work to drive high oil prices to a
“more reasonable” level, saying “Whenever it’s over $50, we have to react.”
Iranian Oil Minister Zanganeh said he was concerned about the high price of oil,
but feared that OPEC could do nothing about it. OPEC–already operating above
quotas–is expected to increase production by 500K barrels this week. Oil is at
a 7-week high.

U.S chain store sales rose 0.6% last week compared with a 0.4% gain
the prior week. Warmer weather in the Eastern part of the country is cited as a
reason.

Hertz filed for a $100 million IPO. Hertz is a division of Ford.

Strong sectors are:   Retail
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+144%    Healthcare Providers
(
$HMO.X |
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+0.76%

Weak sectors are:   Gold
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-1.09%    Software
(
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 Semis
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Pier One
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Cigna
(
CI |
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Target
(
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forecast.

Blackstone will acquire Wyndham in a cash deal worth $3.24
billion.

GE Commercial Aviation ordered 20 Boeing
(
BA |
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Jet Airways also ordered 20 planes, making a total of 40 planes ordered so far
from the company at the Paris Air Show.

Mylan Labs
(
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company also boosted guidance and doubled its dividend to 0.24.

IBM will open a fifth software development center in India and plans
to hire 1000 programmers by year-end.

Vical
(
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vaccine.

Sirius
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