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    September 8, 2006

    Coal miners lower this week

    Filed under: Valero Energy, Sunoco, Administaff, General Motors, Ford Motor, Peabody Energy, Arch Coal, Devon Energy, Consol Energy

    At noon on Friday the New York markets were up on the day but seemed ready to end the week on a negative note. The Dow Jones Industrial Average was 0.8 percent higher so far for the day but was still 0.2 percent lower for the week to 11,366.98. The Nasdaq Composite had gained 0.2 percent to 2,160.29 by noon, but had dropped 1.5 percent since the beginning of the week. The S&P 500 was up 0.2 percent on the day but was 1.1 percent lower for the week to 1,296.07.

    Coal miners saw substantial declines during the week. Arch Coal was 7.9 percent lower to $31.00, Consol Energy fell 9.8 percent to $33.45, and Peabody Energy dropped 11.7 percent to $39.46. Analysts revised their earnings predictions for Peabody downward after Peabody said that its coal shipments would be lower than had been estimated in the third quarter.

    In the oil sector, Devon Energy was up 5.8 percent on the week to $67.90 after news that a well it drilled in conjunction with Chevron in the Gulf of Mexico had led to the discovery of a large new oil field. The rest of the sector suffered from the effect of declining oil prices. Sunoco dropped 8.7 percent to $66.30, while Valero Energy declined by 9.3 percent to $52.41.

    Carmakers did well this week, however. General Motors added 4.5 percent to $31.63 after it said that it will lengthen its warranty on new cars to 100,000 miles or 5 years. Ford Motor added 5.4 percent to $8.72 on the news that it will replace its chief executive.





    August 16, 2006

    Homebuilders higher despite fewer housing starts

    Filed under: DR Horton, Toll Brothers, Administaff, Pulte Homes, Broadcom, Qualcomm, Peabody Energy, Arch Coal, PMC Sierra, Xilinx

    The New York equities markets were higher by midday on Wednesday as new economic data showed that inflation is not growing as quickly as anticipated. Both the Dow Jones Industrial Average and the S&P 500 were 0.4 percent higher at mid-session, to 11,279.17 and 1,290.83 respectively, while the Nasdaq Composite had added 0.7 percent to 2,129.77.

    The semiconductor sector saw gains, with the Philadelphia Stock Exchange’s semiconductor index up over 7 percent since the beginning of the week. Broadcom was 5.7 percent higher to $29.49 after the announcement that the International Trade Commission has extended an investigation into patent infringement by Qualcomm. Despite the continued investigation into the allegations, however, Qualcomm was up 3 percent to $36.51 on comments from Merrill Lynch.

    Elsewhere in the sector, PMC-Sierra added 6.1 percent to $5.92 on the news that a company in Taiwan said it would use PMC processors in its internet telephone service, while Xilinx gained 7.5 percent to $22.19 after it said Tuesday night that it had found no evidence of fraud in its practices of granting stock options.

    Homebuilders were higher even though new housing starts were down in July. DR Horton was up by 3.3 percent to $21.38, while Toll Brothers gained 3.5 percent to $25.39 and Pulte added 4.3 percent to $29.56, all helped by falling yields on 10-year bonds.

    Coal stocks were up on comments by a stock commentator, with Arch Coal 4.3 percent higher to $36.19 and Peabody Energy up by 6 percent to $47.38.





    July 31, 2006

    Middle East still worries investors

    Filed under: Avon, Administaff, Apple Computers, Dell, Phelps Dodge, Office Depot, Peabody Energy, Arch Coal, Humana, Tyson Foods

    At midday on Monday, Wall Street was running behind due to less than desirable corporate earnings reports as well as investor uncertainty about events in the Middle East. The Dow Jones Industrial Average and the S&P 500 were each 0.2 percent lower at mid-session, to 11,194.88 and 1,275.46 respectively, while the Nasdaq Composite had dropped 0.3 percent to 2,088.29.

    Among the companies issuing disappointing quarterly reports were Avon and Tyson Foods. Cosmetics maker Avon was down 9.3 percent to $29.75 after it said its profits dropped by 54 percent in the second quarter. It blamed most of the decline on costs incurred during a restructuring. Meanwhile, Tyson Foods reported that it lost $52 million in the second quarter, more than had been expected. Tyson dropped 2.3 percent to $14.23.

    On the other hand, health insurer Humana added 5.3 percent to $54.28 on a quarterly report that was better than had been expected.

    Office Depot also had an earnings report, issued on Friday, that topped analyst estimates. By noon on Monday the office supplies retailer had added 5.4 percent to $36.20.

    Coal producers were also having a good day after Merrill Lynch said that there would be more demand for coal as other energy sources cost increasingly more. Peabody Energy was 6.2 percent higher to $48.89, while Arch Coal added 7.2 percent to $37.18.

    On reports that it might be purchased by Grupo Mexico, miner Phelps Dodge gained 7.2 percent to $87.40.

    Computer makers were mixed on the day. Dell was 2.5 percent lower to $21.66. On the other hand, Apple Computer added 3.6 percent to $67.96 after it was upgraded from “neutral” to “buy” from Bank of America.





    July 6, 2006

    Costco drops 2.7 percent on slow sales in June

    Filed under: Administaff, Costco Wholesale, Altria, Target, TJX, Dollar General, Peoples Energy, WPS Resources, Peabody Energy, Arch Coal, Reynolds American

    At midday on Thursday, New York equities markets were up after new data showed that the US economy was moderating but not falling off sharply when the Institute for Supply Management’s non-manufacturing index dropped more than had been expected in June. By mid-session, the Dow Jones Industrial Average was up 0.8 percent to 11,237.15, while the Nasdaq Composite and the S&P 500 had each added 0.4 percent, to 2,160.99 and 1,275.86 respectively.

    In the retail sector, Costco declined by 2.7 percent to $55.29 on sales figures that were lower than expected in June. Elsewhere in the sector things were better, with Target up 1.4 percent to $48.94. TJX, which owns TJ Maxx and Marshall’s, added 3.5 percent to $23.00. Dollar General advanced by 4 percent to $14.39.

    The energy sector was mixed. Peoples Energy was up 8.4 percent to $38.99 on the news that it is talking to WPS Resources about a merger. The news sent WPS down 4.5 percent to $47.92. In other mergers and acquisitions news, Peabody Energy added 5 percent after it said it would buy Australian coal company Excel coal. The Peabody announcement helped rival Arch Coal to advanced 2.3 percent to $43.22.

    With the announcement that the Florida Supreme Court has upheld a lower court ruling that threw out a $145 billion damage award against the tobacco industry, tobacco stocks were up substantially. Reynolds American added 4.1 percent to $119.01, while Altria was up 6.6 percent to $78.19, its biggest one-day gain since November 2004.





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