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    January 5, 2007

    US oil sector sees declines on lower prices

    Filed under: ExxonMobil, ConocoPhillips, Home Depot, KB Home, Administaff, Lowes, Cisco Systems, Marathon Oil, Intel, Yahoo, Lennar, Motorola, BMC Software

    Wall Street was down on Friday and both the Dow Jones Industrial Average and the S&P 500 looked set to end the week down as well, although the Nasdaq Composite was likely to notch a gain for the week. The Dow had lost 0.7 percent by midday to 12,388.96, down 0.6 on the week despite hitting a new all-time high on Wednesday. The S&P was 0.8 percent lower on the session so far and 0.7 percent lower for the week at 1,407.94. While the Nasdaq was 1.1 lower over the session at midday, to 2,425.36, it was still up 0.4 percent on the shortened week.

    The oil sector performed particularly badly as crude oil prices dropped over the week. Chevron was 4.4 percent lower to $70.32, while ExxonMobil dropped 5.6 percent to $72.34. ConocoPhillips was down 7.8 percent to $66.35 as it dropped its marketing and refining margins for the fourth quarter. Marathon Oil fell 8.5 percent over the week to $84.60.

    Homebuilders saw declines. KB Homes dropped 4.4 percent to $49.03. Lennar was 4.8 percent lower to $49.92 after it said it would probably see a loss in the fourth quarter.

    Technology stocks did better for the most part, although Motorola dropped 7.8 percent on the week to $18.95 after it said that fourth quarter earnings would be below predictions due to slow mobile phone sales. Chipmaker Intel added 3 percent to $20.86. Cisco was up 3.1 percent to $28.19 on the announcement that it has bought an e-mail security company. Internet search engine Yahoo gained 7 percent to $27.32, while BMC Software added 7.6 percent to $34.65.

    Home improvement retailers did not seem affected much by the drop in the home construction sector. While Home Depot held steady at $41.84 for the week, Lowes added 2.9 percent to $32.04.





    October 31, 2006

    Verizon drops 2.6 percent on broker downgrade

    Filed under: Administaff, Procter & Gamble, Marathon Oil, Verizon, Altria, DaimlerChrysler, Celgene

    Wall Street was flat to slightly lower at mid-session on Tuesday on new data showing that US consumer confidence dropped to 105.4 in October, down from a revised reading of 105.9 in September. The Dow Jones Industrial Average was 0.3 percent lower to 12,048.71, while the Nasdaq Composite was virtually flat after losing only 0.06 points to 2,363.71 and the S&P 500 fell 0.28 percent to 1,374.1.

    In the tobacco sector, Altria fell 0.3 percent to $81.43 on the day that its Philip Morris division argues in front of the US Supreme Court in appeal to an $80 million verdict against it in an Oregon case.

    Marathon Oil dropped 2.1 percent to $83.49 on profit taking even though it reported that profits were significantly higher in the quarter.

    A UBS downgrade to “neutral” sent Verizon 2.6 percent lower to $36.66.

    Proctor and Gamble dropped 0.9 percent to $63.21 even though profits were better than expected on improved margins and better sales in its Gillette unit.

    Among gainers on the day was DaimlerChrysler, which added 4.1 percent to $57.33 on reports that it could sell its Chrysler division.

    Celgene added 6.1 percent to $52.88 after an announcement Monday evening from Standard & Poor’s that the biotechnology company will replace AmSouth Bancorp on the S&P 500 after trade closes at the end of the week.





    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.





    September 20, 2006

    Oil sector declines on falling prices

    Filed under: Administaff, Oracle, Bear Stearns, Marathon Oil, Halliburton, Morgan Stanley, Reynolds American, Masco, Legg Mason

    The New York equities markets were up Wednesday at midday as investors waited for the Federal Reserve to issue its latest decision on interest rates. The Dow Jones Industrial Average gained 0.6 percent to 11,603.91, while the Nasdaq Composite was 1.4 percent higher to 2,252.74 and the S&P 500 was also up 0.6 percent to 1,325.90. The S&P was at its highest level since February 2001, while the Dow was approaching its all-time high level.

    Oil and oil-related companies were lower, however, as crude oil prices continued to decline. Halliburton was 2.7 percent lower to $28.32, while Marathon Oil dropped 3 percent to $71.26.

    The tobacco sector was also lower as Reynolds American was 3.7 percent lower to $62.12 on a downgrade from “buy” to “hold” from Citigroup, which said that product shortages were driving consumers to other brands.

    Plumber Masco declined by 2.1 percent to $26.77 after it revised its earnings guidance downward for this year based on the decrease in housing starts.

    In the banking sector, however, investment banks saw gains on the day. Morgan Stanley added 0.9 percent to $72.51 on a 59 percent increase in third-quarter earnings, a better performance than had been anticipated. The news helped Bear Stearns, which gained 3.7 percent to $140.20, while Legg Mason was 4 percent higher to $100.87.

    Oracle added 11.8 percent higher to $18.04 after it said that its fiscal first quarter profits were up by 29 percent, which its chief executive said was due to an increased market share.





    September 1, 2006

    Ebay, Amazon see advances

    Filed under: Sunoco, Administaff, Marathon Oil, Intel, eBay, LSI Logic, Ciena, JDS Uniphase, Amazon, PMC Sierra, Nordstrom, Family Dollar

    Wall Street was up at midday on Friday and looked to be ready to end the week at its highest levels in three months. The Dow Jones Industrial Average was 0.7 percent higher on the day so far and 1.6 percent higher for the week to 11,465.51. The Nasdaq Composite had added 0.5 percent on the day and 2 percent on the week to 2,194.21, while the S&P 500 was 0.6 percent higher to mid-session and up 1.2 percent on the week to 1,310.94.

    The semiconductors sector saw significant gains during the week. Intel added 5.3 percent to $19.90 on an upgrade from “market perform” to “outperform” from Friedman Billings Ramsey. Meanwhile, LSI Logic gained 8 percent to $0.86 and PMC Sierra was 9.8 percent higher to $6.73.

    Retailers were also up. Discount retailer Family Dollar was up by 10.8 percent to $26.12 on higher than anticipated sales in August and an improved fourth-quarter guidance. Nordstrom had its best week in more than a year, adding 11.7 percent to $38.02.

    Internet stocks did well. Ebay was 11.1 percent higher to $28.11 on an announcement of an advertising agreement with Google. Amazon gained 12.8 percent to $31.63.

    Losers on the week included the oil and telecommunications equipment sectors. Ciena, which manufactures networking equipment, dropped 4.6 percent to $3.95, while JDS Uniphase was 11.2 percent lower to $2.29.

    In the oil sector, Marathon Oil fell 8.5 percent to $84.26, while Sunoco dropped 6.4 percent to $72.39.





    August 30, 2006

    Oil sector declines on new inventories

    Filed under: Goodyear, Administaff, Marathon Oil, Qualcomm, Lucent, ADC Telecommunications, Harris, Nabors Industries

    Equities markets in New York were mixed on Wednesday at midday despite some good news in the form of an upwardly revised number for the gross domestic product in the second quarter. Instead of the first estimate of GDP growth of 2.5 percent in the quarter, growth was estimated to have been at 2.9 percent, fairly close to the expected 3 percent growth.

    The Dow Jones Industrial Average was close to flat, up only 4.32 points halfway through the session, to 11.374.26. The Nasdaq Composite was 0.3 percent higher to 2,179.51, but the S&P 500 was 0.1 percent lower to 1,303.58.

    The telecommunications sector was mixed. After reporting that its third-quarter earnings were down by 50 percent, ADC Telecommunications dropped 8.3 percent to $13.53. With share values down by 40 percent so far this year, Credit Suisse reduced its recommendation on ADC from “outperform” to “neutral”. Harris, another telecoms equipment manufacturer, was 2.8 percent lower to $44.01, also after a broker downgrade. Prudential lowered their rating from “neutral weight” to “underweight.” Gainers in the telecoms sector included Qualcomm, which added 1.3 percent to $38.12. In addition, Lucent was 2.6 percent higher to $2.36.

    Goodyear Tire & Rubber was up by 2.2 percent to $13.51, bringing its gains to 37 percent in just six weeks.

    The oil sector was lower as crude prices declined again after this week’s inventories report showed gains in crude oil and gasoline stockpiles. Nabors Industries dropped 2.4 percent to $32.70, while Marathon Oil declined 3.6 percent to $84.70.





    August 25, 2006

    ExxonMobil sets record for share price

    Filed under: ExxonMobil, Home Depot, KB Home, Administaff, Lowes, Marathon Oil, Boeing, Caterpillar, Circuit City, Best Buy, Dollar General

    At midday on Friday, the New York equities markets seemed poised to end the week lower than they began as weak data and rising crude oil prices hurt investor sentiment. The Dow Jones Industrial Average was 0.2 percent lower for the day and 0.9 percent down on the week to 11,284.45 and the S&P 500 was also 0.2 percent lower for the session so far and 0.6 percent lower for the week to 1,294.18. While the Nasdaq Composite was 0.1 percent higher for the day at 2,139.64, it was 1.1 percent lower on the week.

    Among the economic data that contributed to this week’s declining sentiment was a larger than expected decline in the sale of both new and existing homes in July. Durable goods orders were also down in the latest figures. The bad news on home sales hurt the home improvement retail sector, with Home Depot dropping 4.1 percent during the week to $33.36, while Lowe’s lost 10.1 percent to $26.55. Beyond the housing data, Lowe’s was also hurt by a second quarter report that showed profits lower than had been expected.

    Other retailers were also down on the week as the slowdown in home sales raised concerns that consumer spending in other areas would also decline. Among consumer electronics retailers, Best Buy dropped 7.1 percent to $45.53, while Circuit City was 12.2 percent lower to $22.50. Discount retailer Dollar General dropped even more, falling 13.2 percent to $12.23.

    In the homebuilding sector, KB Home was 8.9 percent lower over the week to $40.44, partly on the news that it is being informally investigated by the Securities and Exchange Commission for its practices in the granting of stock options.

    The news on orders for durable goods affected heavy industry. Caterpillar, the construction equipment maker, declined by 3.5 percent to $65.91, while aerospace company Boeing dropped 4.3 percent to $74.27.





    August 21, 2006

    Home improvement, transport, intenet all lower

    Filed under: ExxonMobil, Home Depot, Administaff, Lowes, Newmont Mining, Marathon Oil, Google, Yahoo, Burlington Northern Santa Fe, Norfolk Southern, Amazon, Coeur dAlene, Barrick, Freeport McMoran

    Wall Street was down on Monday as crude oil prices were once again on the rise as worries grew once again over Iran’s insistence on continuing its nuclear development program. The Dow Jones Industrial Average ended the session 0.3 percent lower to 11,345.05, while the Nasdaq Composite dropped 0.8 percent to 2,147.75 and the S&P 500 declined by 0.4 percent to 1,297.52.

    Nearly the only sector that the higher oil prices helped was the oil sector itself. ExxonMobil was 1.1 percent higher to $69.83, while Marathon Oil added 3.1 percent to $89.94.

    Also higher on the day, as investors sought a safe place to put their money, was the gold segment of the mining sector. Newmont Mining was up 3.6 percent to $52.55. Barrick Gold added 4.2 percent to $33.00. Copper miners also saw gains as a South American strike continued with not immediate hope of a solution. Freeport McMoran advanced by 4.7 percent to $57.15 and Coeur d’Alene was 4.9 percent higher to $5.37.

    Home improvement retailers were lower. Lowe’s dropped 4 percent to $28.35 on a disappointing second-quarter report, and has lost 15 percent since January. Home Depot followed Lowe’s lower, falling 1.4 percent to $34.30. Elsewhere in the retail sector, Dollar General was down 9.6 percent to $12.74.

    Transport was hit by higher oil prices, with Burlington Northern Santa Fe dropping 3.5 percent to $66.07 and Norfolk Southern declining by 4.1 percent to $42.46.

    Internet stocks were lower as well, as Google fell 1.6 percent to $377.30, Yahoo was 3 percent lower to $28.90, and Amazon declined 3.4 percent to $28.13.





    July 7, 2006

    Ebay drops as Citigroup cuts target share price

    Filed under: ConocoPhillips, Administaff, Newmont Mining, Marathon Oil, eBay, Altria, Reynolds American, PMC Sierra

    The New York equities markets were generally lower by midday on Friday as the Labor Department released new data showing that fewer jobs were created in the US in June than had been predicted. The Dow Jones Industrial Average was down 0.7 percent to 11,149.50, a drop of 0.1 percent on the week. The Nasdaq Composite dropped 0.4 percent to 2,146.83, a decline of 1.2 percent over the week. The S&P 500 was nearly even, having lost only 1.16 points to 1,272.92, leaving it with a gain of 0.2 percent on the week.

    The news that only 121,000 jobs had been created in the US in June was a disappointment after a gain of 200,000 had been predicted. The high expectations had been raised by Wednesday’s National Employment Report from payroll services company ADP, which said that 368,000 new jobs had been created during June. The Labor Department numbers, along with figures showing that higher than expected wage inflation during the month, made investors nervous.

    Ebay dropped 7.9 percent to $26.99, largely on a downgrade from Citigroup, which lowered its target share price on the online auctioneer by over 20 percent to $40 earlier in the week. In addition, Ebay said that it was installing new senior executives in several divisions.

    Changes in personnel also led to a decline for PMC Sierra in the semiconductors sector, as the chipmaker declined by 18.4 percent to $7.67 after it said its chief financial officer is leaving the company.

    Climbing oil prices led to advances in the oil sector. ConocoPhillips added 4.9 percent during the week to $68.74, while Marathon Oil was up 5 percent to $87.50.

    Also up on higher commodities prices was Newmont Mining, which was up 4.4 percent to $55.25.

    Tobacco companies also saw gains on the week after the Florida Supreme Court set aside a $145 billion dollar punitive damages award against the US tobacco industry. Reynolds American added 1.6 percent to $117.19, while Altria gained 5.5 percent to $77.45.





    March 24, 2006

    Slowing new home sales helps New York markets

    Filed under: ConocoPhillips, Administaff, Dell, Hewlett-Packard, Marathon Oil, Google, Yahoo, Microsoft, Gateway

    The New York equities markets were mixed for the week, but new home sales data on Friday that raised hopes that interest rates might peak sooner than has been anticipated sent the indexes up on the day. The Dow Jones Industrial Average was up 0.3 for the day to 11,297.98, but only managed an 0.2 percent gain for the week. The Nasdaq Composite gained 0.4 percent on Friday and rose 0.2 percent for the week, to 2,309.98. The S&P 500 added 0.2 percent on Friday to close at 1,304.22, but declined by 0.2 percent for the week.

    In the oil sector, the Amex Oil index was down 0.5 percent for the week as crude oil prices rose and fell. Despite the ups and downs, several oil companies saw gains. Marathon Oil added 1.9 percent to $77.79, while ConocoPhillips advanced by 1.4 percent to $62.20. Gains in both companies came after upgrades by Prudential Equity Group.

    In computer-related sectors, Microsoft shook things up when it said Tuesday that it will not release its new Vista operating system until next year. It was another in a series of delays for the new system. Microsoft dropped 2.1 percent for the week to $26.92. Computer makers Gateway and Hewlett-Packard both saw declines as well. Hewlett-Packard lost 2.6 percent to $33.27 and Gateway declined by 1.7 percent to $2.38. On the other hand, Dell gained 4.4 percent on the week to $30.34 after it predicted that its sales will increase due to Asian expansion.

    Internet search engines did well on the week. Google added 8.2 percent to $367.65 as the S&P 500 added it to its index. Yahoo gained 5.7 percent to $31.78 after an upgrade from UBS.





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