Portfolio Crafter
11-14-2006, 11:12 AM
End of Day Market Summary Monday 11/13/2006
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Stocks closed higher as concerns over slowing growth eased after a Fed official said the economy was growing "forcefully". A decline in the price of oil further boosted market sentiment. Tech stocks rallied pushing the Nasdaq composite to its highest close in nearly six years.
Today, the Dow Jones industrial average closed up 23.45 or 0.19% to 12,131.88, the broader S&P 500 index closed up 3.52 or 0.25% to 1,384.42, and the tech-fueled Nasdaq composite closed up 16.66 or 0.70% to 2,406.38.
Market breadth was positive and volume was moderate. On the New York Stock Exchange, winners beat losers by 9 to 7 on volume of 1.41 billion shares. On the Nasdaq, advancers beat decliners nearly 17 to 12 on volume of 1.76 billion shares.
The market appears to be getting more comfortable with the Democratic win. They're looking forward to a strong Christmas and a good earnings season while oil continues to go down. Additionally, remarks from Dallas Fed President Richard Fisher that the U.S. economy is growing "forcefully" only serve to ratify investors' bullish sentiment. He said that the U.S. is a country with "enormous economic production" that is "growing forcefully" at this time. However, a lot of data is expected this week and this could prove to be a litmus test for the market.
Investors are looking for further signs that the economy, though slowing, is not headed for a so-called "hard landing." These signs shall be available through October retail sales, October producer price index, September business inventories, consumer prices (CPI), manufacturing and housing. Additionally, investors continue to bet that the Federal Reserve will begin cutting rates some time in the first half of next year and will be looking for this week's reports to support such beliefs. A jump in the week's inflation reports might raise worries that the Fed won't be able to cut rates as soon as had been hoped. Such concerns could spark a stock selloff.
Shares of Merck & Co. closed up 34 cents to $43.46, after the FDA said it needed more time to evaluate the safety of a diabetes drug from Switzerland's Novartis. The oral diabetes drug, known as Galvus, would be a direct competitor for Merck's diabetes treatment Januvia, which received FDA approval last month.
Shares of Novartis fell 1.8% to $58.30, after reporting that the FDA required three more months to determine whether problems encountered by animals taking its oral diabetes drug Galvus may pose risks to humans. Galvus is a key drug in the Novartis pipeline, and is one of the new class of drugs, called DPP-IV, that are starting to hit the market. DPP-IV drugs enhance the body's ability to lower blood sugar.
Shares of Isis Pharmaceuticals Inc. closed up $2.05 or 20% to $12.43, after two Phase II trials showed its cholesterol-lowering drug worked well to cut LDL, or so-called "bad" cholesterol. The data also showed that the drug had a "strong safety profile," and it was well-tolerated in both studies.
Among Mergers and Acquisitions, shares of Hess Corp. climbed up 0.5% to close at $45.24, after it agreed to partner with BHP Billiton and Repsol YPF to buy the Genghis Khan oil and gas development for a total of $1.35 billion. Hess will pay $378 million for its 28% interest in the Gulf of Mexico development. Shares of Illumina Inc. fell 11.6% to $38.93 after it agreed to buy Solexa Inc., in a $600 million all-share deal. Shares of Solexa shot up 30%. Stock of Eddie Bauer Holdings closed up 2% after it agreed to be acquired by Eddie B Holding Corp., a company owned by affiliates of Sun Capital Partners and Golden Gate Capital, for roughly $614 million, including debt assumption of $328 million.
U.S. light crude oil for December delivery sank $1.01 to settle at $58.58 a barrel on the New York Mercantile Exchange.
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Stocks closed higher as concerns over slowing growth eased after a Fed official said the economy was growing "forcefully". A decline in the price of oil further boosted market sentiment. Tech stocks rallied pushing the Nasdaq composite to its highest close in nearly six years.
Today, the Dow Jones industrial average closed up 23.45 or 0.19% to 12,131.88, the broader S&P 500 index closed up 3.52 or 0.25% to 1,384.42, and the tech-fueled Nasdaq composite closed up 16.66 or 0.70% to 2,406.38.
Market breadth was positive and volume was moderate. On the New York Stock Exchange, winners beat losers by 9 to 7 on volume of 1.41 billion shares. On the Nasdaq, advancers beat decliners nearly 17 to 12 on volume of 1.76 billion shares.
The market appears to be getting more comfortable with the Democratic win. They're looking forward to a strong Christmas and a good earnings season while oil continues to go down. Additionally, remarks from Dallas Fed President Richard Fisher that the U.S. economy is growing "forcefully" only serve to ratify investors' bullish sentiment. He said that the U.S. is a country with "enormous economic production" that is "growing forcefully" at this time. However, a lot of data is expected this week and this could prove to be a litmus test for the market.
Investors are looking for further signs that the economy, though slowing, is not headed for a so-called "hard landing." These signs shall be available through October retail sales, October producer price index, September business inventories, consumer prices (CPI), manufacturing and housing. Additionally, investors continue to bet that the Federal Reserve will begin cutting rates some time in the first half of next year and will be looking for this week's reports to support such beliefs. A jump in the week's inflation reports might raise worries that the Fed won't be able to cut rates as soon as had been hoped. Such concerns could spark a stock selloff.
Shares of Merck & Co. closed up 34 cents to $43.46, after the FDA said it needed more time to evaluate the safety of a diabetes drug from Switzerland's Novartis. The oral diabetes drug, known as Galvus, would be a direct competitor for Merck's diabetes treatment Januvia, which received FDA approval last month.
Shares of Novartis fell 1.8% to $58.30, after reporting that the FDA required three more months to determine whether problems encountered by animals taking its oral diabetes drug Galvus may pose risks to humans. Galvus is a key drug in the Novartis pipeline, and is one of the new class of drugs, called DPP-IV, that are starting to hit the market. DPP-IV drugs enhance the body's ability to lower blood sugar.
Shares of Isis Pharmaceuticals Inc. closed up $2.05 or 20% to $12.43, after two Phase II trials showed its cholesterol-lowering drug worked well to cut LDL, or so-called "bad" cholesterol. The data also showed that the drug had a "strong safety profile," and it was well-tolerated in both studies.
Among Mergers and Acquisitions, shares of Hess Corp. climbed up 0.5% to close at $45.24, after it agreed to partner with BHP Billiton and Repsol YPF to buy the Genghis Khan oil and gas development for a total of $1.35 billion. Hess will pay $378 million for its 28% interest in the Gulf of Mexico development. Shares of Illumina Inc. fell 11.6% to $38.93 after it agreed to buy Solexa Inc., in a $600 million all-share deal. Shares of Solexa shot up 30%. Stock of Eddie Bauer Holdings closed up 2% after it agreed to be acquired by Eddie B Holding Corp., a company owned by affiliates of Sun Capital Partners and Golden Gate Capital, for roughly $614 million, including debt assumption of $328 million.
U.S. light crude oil for December delivery sank $1.01 to settle at $58.58 a barrel on the New York Mercantile Exchange.
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