Paul Kangas' Wall Street Wrap Up
Friday, August 18, 2006
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PAUL KANGAS: Wall Street opened slightly lower on some profit taking after four straight days of gains. Other negatives were a rebound in oil prices and a weak tech sector after Dell`s late-day lower earnings report we told you about last night. The Dow fell 10 points at the outset, NASDAQ dropped 18. But the mild morning correction and falling interest rates did trigger a late recovery and the market ended higher for the fifth straight day. Dow Industrial Average closed up 46.51 points at 11,381.47 today. The Dow rose every day this week for a net advance of 293.44 points. The NASDAQ Composite was up 6.34 today, ending at 2163.95. It also rose every day of the week for an overall gain of 106 1/4 points. The Standard & Poor`s 500 Index was up 4.82, ending at 1302.30 today. Over in the bond market, the 10-year note rose 6/32 to par and 8/32, lowering the yield to 4.85 percent.
Most active New York exchange issue on 33 million shares, Lucent Tech (LU) edging $0.04 higher.
Then Ford Motor Co (F) down $0.17. As you heard, it`s cutting fourth quarter production sharply and that had an impact on a lot of the auto supply companies.
Borgwarner (BWA) for example, down $2.07.
Lear (LEA) down $1.47.
And Visteon (VC) fell $0.19.
Hewlett-Packard (HPQ) a $0.37 gain. Good earnings out Wednesday as we reported and of course, it got a $6 billion stock buy back in place.
Pfizer (PFE) a nickel gain.
Merck & Co (MRK), fifth in volume, was up $0.69 a share.
Then we see Advanced Micro Devices (AMD) down $0.27 after a good gain yesterday when Citigroup upgraded it from "hold" to "buy."
Altria Group (MO) up $3.22 on a very strong tobacco group. Yesterday as we reported, a judge ruled that the tobacco companies did violate racketeering laws, but that the courts cannot levy any big fines.
Sprint Nextel (S) was a $0.09 gainer.
ExxonMobil (XOM) on the higher oil prices, up $1.02.
Time Warner (TWX), tenth in volume, rose $0.07 a share.
Eli Lilly (LLY) losing $0.92, traded as low as $53.93. The news, FDA is requesting more data on the company`s new drug application for its treatment for diabetic eye disease.
Then the Gap (GPS) off $0.65. Second quarter earnings half of what they were last year, $0.15 versus $0.30 then. Same store sales fell 5 percent and the company cut its full year earnings guidance from about $1.25 a share down to $1.10. Standard & Poor`s repeated a "sell" recommendation on Gap shares. Foot Locker (FL) up $1.99. Second quarter earnings tumbled to only $0.09 from $0.28 a year ago, but for a full year, the company said it`ll have earnings as high as $1.62 and that`s above the Wall Street average estimate of $1.58, up went the stock.
The Mills (MLS), the troubled REIT, having a good day for a change. RBS Capital upgraded it from "sector perform" to "out perform." Standard & Poor`s upgraded it from "hold" to a "buy."
Aeropostale (ARO) up $3.06. Second quarter earnings rose to $0.16 from $0.13 a year ago. The company sees third quarter earnings jumping to $0.55 to $0.57 a share, well above.
And then Devry (DV) down $2.65. Fourth quarter earnings $0.17 versus break even last year, but those $0.17 earnings, $0.02 below the Street estimate.
And Resmed (RMD) tumbling $3.40. Fourth quarter earnings were higher, $0.30 versus $0.22, but the company noted competition is waking up among makers of devices to treat sleep disorders like Resmed.
And finally, Ryerson (RYI), a metals company, up $1.07. JPMorgan upgraded it from "neutral" to "overweight."
Microsoft (MSFT) topped the active list on NASDAQ, up $1.09. Of course this week, the company had a Dutch tender auction to buy 155 million of its own shares at $24.75. The auction expired yesterday, but the company still has a huge stock buy back program in place.
Dell (DELL) down $0.64. Yesterday`s earnings disappointing to be sure.
Google (GOOG) down $2.44.
Apple Computer (AAPL) was up $0.32.
Intel (INTC) $0.16 drop, fifth in dollar volume on NASDAQ.
Cisco Systems (CSCO) edged a penny higher.
Marvell Tech Group (MRVL) down $1.43. Preliminary second quarter revenues up 47 percent for Marvell, but the other results still on hold asthe company reviews its ongoing stock option practices investigation.
Broadcom (BRCM) gained or lost a nickel.
And Yahoo! (YHOO) up $0.87.
Oracle (ORCL) down a dime. That was tenth in volume.
Bebe Stores (BEBE) gained $3.76. The women`s clothing retailer had fourth quarter earnings $0.24 versus $0.21 a year ago, $0.03 above the Street estimate.
And then Cost Plus (CPWM) down $2.81. The home furnishings retailer had a second quarter loss of $0.51 versus earnings last year. Sales down 3.2 percent. The company sees a third quarter loss of $0.38 to $0.47 a share.
Those are the stocks in the news tonight.
