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    September 25, 2006

    Drug retailers continue to decline

    Filed under: Administaff, Marathon Oil, Altria, CVS, Phelps Dodge, Archer Daniels Midland, Coeur dAlene, Reynolds American, Walgreen, Pride International

    The New York equities markets were mixed at midday on Monday on news from several sectors. Both the Dow Jones Industrial Average and the S&P 500 were lower, by 0.1 percent each to 11,497.13 and 1,314.15 respectively, while the Nasdaq Composite had added 0.2 percent to 2,222.94.

    Crude oil futures that fell below $60 per barrel sent the oil sector lower. Marathon Oil dropped 2.7 percent to $69.25, while Pride International, an oil services group, fell 3 percent to $25.46. Archer Daniels Midland declined 4.2 percent to $36.85 on comments from an investment commentator that ethanol would never seriously challenge oil as a fuel.

    Metals prices were also lower, sending shares in miners tumbling. Coeur d’Alene fell 2.8 percent to $4.44, while Phelps Dodge was 3.1 percent lower to $80.16.

    The tobacco sector saw losses when a federal court judge in New York let a class-action suit representing users of “light” cigarettes proceed in the courts. Reynolds American fell 2.7 percent to $60.36, while Altria dropped 4.3 percent to $78.82.

    Drug retailers continued to decline after last week’s announcement by Wal-Mart that it was starting a pilot program to sell generic prescription drugs at $4 for a thirty-day supply. CVS declined 4.7 percent to $31.48, while Walgreen’s dropped 4.8 percent to $44.63 even though it said it saw profits increase by 25 percent in it’s fiscal forth quarter.





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