Portfolio Crafter
10-11-2006, 10:20 PM
End of Day Market Summary Wednesday, 10/11/2006
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Stocks fell in a session rocked by an aircraft crashing into a building in New York City, disappointment over the near-term interest rate outlook and an inauspicious start to the third-quarter earnings reporting season.
Today, the Dow Jones industrial average closed down 15.04 or 0.13% to 11,852.13, the broader S&P 500 index closed down 3.47 or 0.26% to 1,349.95, and the tech-fueled Nasdaq composite index closed down 7.16 or 0.31% to 2,308.27.
Market breadth was negative. On the New York Stock Exchange, losers beat winners by 19 to 13 on volume of 1.59 billion shares. On the Nasdaq, decliners edged out advancers by three to two on volume of 2.05 billion shares.
Stocks fell sharply after a small plane crashed into a high-rise building in New York City's Upper East Side, then rebounded as investors took a benign view of the crash. Yankees reliever Cory Lidle, was killed in the crash that rattled nerves in New York, where residents are acutely aware that their city remains high on the list of potential terrorist targets. The markets recovered as it became clear that terrorism apparently was not involved.
On the economic front, minutes from the Federal Open Market Committee meeting showed that Fed policy-makers remained "quite concerned" about inflation risks, but decided to keep rates on hold for a second straight time while renewing their commitment to ratcheting down inflation pressures. They persisted that the rate of core inflation was higher than consistent with price stability. This observation has got the investors worried.
On the data front, the federal deficit was trimmed to $248 billion in fiscal 2006. This is a decline of $71 billion from the $319 billion gap recorded in 2005. Investors will now be paying close attention to September's retail sales report that is due out Friday.
Shares of Alcoa closed down $1.44 or 5% to $26.85, despite reporting that its third-quarter profit almost doubled. The results missed estimates because of a steep drop in metals prices, and rising costs. Net income for the quarter surged 86% to $537 million, its revenue climbed 19% to $7.6 billion but also missed the $7.75 billion expected by analysts.
Shares of Gannett Co. Inc closed down $1.49 or 3.4% to $56.23, after the newspaper publisher reported a 12% decline in third-quarter earnings. While revenue rose 2.7% to $1.91 billion, it fell short of analyst expectations of upto $1.99 billion. Its income dropped to $261.4 million from $297 million a year ago. The EPS dropped 9% from $1.22 to $1.11.
Shares of Genentech Inc. fell 1.7% to $84.15, despite reporting a 58% rise in third-quarter net earnings. While sales of Lucentis reached $153 million, sales of its other drugs, Avastin, Herceptin and Rituxan failed to impress. The company reported net earnings of $568 million, and the revenue rose to $2.38 billion against the expected $2.32 billion.
Stock of CNET Networks closed down $0.76 or 7.7% to $9.14, after the company said Shelby Bonnie resigned as CEO after a special committee blamed him for backdating of stock options. The committee also found that its former CFO and its general counsel were partly to blame for the options problems.
Shares of McAfee Inc closed up $0.85 or 3% to $26.64, after the security software firm fired its president and said that CEO George Samenuk would step down after an internal probe into the company's stock options practices. The company will also restate historical financial results due to past stock option grants, and that the restatement will fall in the range of $100 million to $150 million.
Shares of Apple closed down $0.58 or 1% to $73.23, on reports that two of its directors may have had conflict of interest when they conducted a investigation into the company's backdated stock options grants.
Bank of America stepped up the online trading war by offering 30 free online trades a month for customers with at least $25,000 in deposits or other accounts. Its share closed down $0.59 to $54.04, and is its bid to capitalize on its nationwide footprint and expand beyond its traditional retail banking operation.
It has been reported that Apollo Management and Texas Pacific Group have raised their bid for Harrah's Entertainment to more than $15.5 billion. The offer has been raised from the initial $81 a share to almost $84 a share. This would be the fifth-largest leveraged buyout on record.
Oil Prices with the benchmark November contract closing down 42 cents at $58.10 a barrel. Traders weighed an agreement by OPEC to cut production against a monthly report that offered a lower oil-demand forecast and showed that world production fell in September. An OPEC minister said the oil cartel will soon announce a formal decision to cut 1 million barrels a day of production.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
30-day risk-free trial (http://www.portfoliocrafter.com?a_aid=fiasco)
Stocks fell in a session rocked by an aircraft crashing into a building in New York City, disappointment over the near-term interest rate outlook and an inauspicious start to the third-quarter earnings reporting season.
Today, the Dow Jones industrial average closed down 15.04 or 0.13% to 11,852.13, the broader S&P 500 index closed down 3.47 or 0.26% to 1,349.95, and the tech-fueled Nasdaq composite index closed down 7.16 or 0.31% to 2,308.27.
Market breadth was negative. On the New York Stock Exchange, losers beat winners by 19 to 13 on volume of 1.59 billion shares. On the Nasdaq, decliners edged out advancers by three to two on volume of 2.05 billion shares.
Stocks fell sharply after a small plane crashed into a high-rise building in New York City's Upper East Side, then rebounded as investors took a benign view of the crash. Yankees reliever Cory Lidle, was killed in the crash that rattled nerves in New York, where residents are acutely aware that their city remains high on the list of potential terrorist targets. The markets recovered as it became clear that terrorism apparently was not involved.
On the economic front, minutes from the Federal Open Market Committee meeting showed that Fed policy-makers remained "quite concerned" about inflation risks, but decided to keep rates on hold for a second straight time while renewing their commitment to ratcheting down inflation pressures. They persisted that the rate of core inflation was higher than consistent with price stability. This observation has got the investors worried.
On the data front, the federal deficit was trimmed to $248 billion in fiscal 2006. This is a decline of $71 billion from the $319 billion gap recorded in 2005. Investors will now be paying close attention to September's retail sales report that is due out Friday.
Shares of Alcoa closed down $1.44 or 5% to $26.85, despite reporting that its third-quarter profit almost doubled. The results missed estimates because of a steep drop in metals prices, and rising costs. Net income for the quarter surged 86% to $537 million, its revenue climbed 19% to $7.6 billion but also missed the $7.75 billion expected by analysts.
Shares of Gannett Co. Inc closed down $1.49 or 3.4% to $56.23, after the newspaper publisher reported a 12% decline in third-quarter earnings. While revenue rose 2.7% to $1.91 billion, it fell short of analyst expectations of upto $1.99 billion. Its income dropped to $261.4 million from $297 million a year ago. The EPS dropped 9% from $1.22 to $1.11.
Shares of Genentech Inc. fell 1.7% to $84.15, despite reporting a 58% rise in third-quarter net earnings. While sales of Lucentis reached $153 million, sales of its other drugs, Avastin, Herceptin and Rituxan failed to impress. The company reported net earnings of $568 million, and the revenue rose to $2.38 billion against the expected $2.32 billion.
Stock of CNET Networks closed down $0.76 or 7.7% to $9.14, after the company said Shelby Bonnie resigned as CEO after a special committee blamed him for backdating of stock options. The committee also found that its former CFO and its general counsel were partly to blame for the options problems.
Shares of McAfee Inc closed up $0.85 or 3% to $26.64, after the security software firm fired its president and said that CEO George Samenuk would step down after an internal probe into the company's stock options practices. The company will also restate historical financial results due to past stock option grants, and that the restatement will fall in the range of $100 million to $150 million.
Shares of Apple closed down $0.58 or 1% to $73.23, on reports that two of its directors may have had conflict of interest when they conducted a investigation into the company's backdated stock options grants.
Bank of America stepped up the online trading war by offering 30 free online trades a month for customers with at least $25,000 in deposits or other accounts. Its share closed down $0.59 to $54.04, and is its bid to capitalize on its nationwide footprint and expand beyond its traditional retail banking operation.
It has been reported that Apollo Management and Texas Pacific Group have raised their bid for Harrah's Entertainment to more than $15.5 billion. The offer has been raised from the initial $81 a share to almost $84 a share. This would be the fifth-largest leveraged buyout on record.
Oil Prices with the benchmark November contract closing down 42 cents at $58.10 a barrel. Traders weighed an agreement by OPEC to cut production against a monthly report that offered a lower oil-demand forecast and showed that world production fell in September. An OPEC minister said the oil cartel will soon announce a formal decision to cut 1 million barrels a day of production.
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