Portfolio Crafter
11-21-2006, 10:53 PM
End of Day Market Summary Tuesday 11/21/2006
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Stocks closed higher with gains by Alcoa Inc., Caterpillar Inc. and Boeing Co. supporting the Dow Jones Industrial Average and helping offset higher crude prices and light volumes ahead of Thursday's Thanksgiving holiday. The Nasdaq composite and S&P 500 managed to carve out fresh multi-year highs.
Today, the Dow Jones industrial average closed up 5.05 or 0.04% to 12,321.59, the broader S&P 500 index closed up 2.31 or 0.16% to 1,402.81, and the Nasdaq composite index closed up 2.12 or 0.09% to 2,454.84, its highest level since February 2001.
Market breadth was mixed. On the New York Stock Exchange, winners topped losers five to three on volume of 1.53 billion shares. On the Nasdaq, decliners and advancers were roughly even as almost 1.71 billion shares changed hands.
While the market appears overbought, investors continue to buy on little weakness aggressively. A correction or at least some consolidation may be expected in the near term. The market was concerned that the M&A activity did not spur a major rally. This is an indication that the market is now "screaming for relief". Additionally, Federal Reserve Board Governor Kevin Warsh said that inflation remains "uncomfortably elevated" even after coming off its worst levels from earlier this year. However, many opine that the benign October reports on consumer and producer prices, indicate that the Fed is done with raising interest rates.
Stocks will likely have more direction next week, as investors return from vacations and as retailers give fuller reports about Black Friday and the weekend. December should be another positive month for stocks, since the major underlying factors that have supported the advance since the summer are still in place.
Shares of Boeing Co. closed up $1.98 to $91.10, after winning a $5.5 billion order for 25 planes from Korean Air Co. Additionally, former Boeing unit Spirit Aerosystems Holdings Inc. priced its IPO at $26 a share, above the $23 to $25 a range.
Stock of Verizon Communications closed up $0.46 or 1.3% to $35.13, after Credit Suisse First Boston upgraded it to "outperform" from "neutral". It believes that the company is setting itself up for earnings growth as dilution from its FiOS Internet service reaches its peak.
Stock of Google closed up $14.60 or 3% to $509.65, as the search engine leader shot past $500 for the first time. The Internet search engine unveiled discounts for online shoppers who use its payment service during the holiday season.
Stock of Medtronic closed up $4.60 or 9.4% to $53.55, as it reported higher than expected quarterly earnings. Its quarterly profit beat expectations as it gained share from rivals in the market for implantable devices that manage irregular heart rhythms.
Maker of iPod, Apple closed up $2.13 to $88.60 - at an all-time high as investors expressed optimism about the strength of the company's iPod sales in the crucial holiday period. There is also speculation that it is working on the launch of an Iphone that would combine the capability of its blockbuster Ipod media player with a phone.
U.S. light crude oil for January delivery rose $1.37 to settle at $60.17 a barrel on the New York Mercantile Exchange. The rise in price is owing to the news that Alyeska Pipeline Service Co. has cut flow in the 800-mile Trans-Alaska Pipeline to 25% of normal capacity as high winds stymied tanker loadings in Valdez, Alaska.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks closed higher with gains by Alcoa Inc., Caterpillar Inc. and Boeing Co. supporting the Dow Jones Industrial Average and helping offset higher crude prices and light volumes ahead of Thursday's Thanksgiving holiday. The Nasdaq composite and S&P 500 managed to carve out fresh multi-year highs.
Today, the Dow Jones industrial average closed up 5.05 or 0.04% to 12,321.59, the broader S&P 500 index closed up 2.31 or 0.16% to 1,402.81, and the Nasdaq composite index closed up 2.12 or 0.09% to 2,454.84, its highest level since February 2001.
Market breadth was mixed. On the New York Stock Exchange, winners topped losers five to three on volume of 1.53 billion shares. On the Nasdaq, decliners and advancers were roughly even as almost 1.71 billion shares changed hands.
While the market appears overbought, investors continue to buy on little weakness aggressively. A correction or at least some consolidation may be expected in the near term. The market was concerned that the M&A activity did not spur a major rally. This is an indication that the market is now "screaming for relief". Additionally, Federal Reserve Board Governor Kevin Warsh said that inflation remains "uncomfortably elevated" even after coming off its worst levels from earlier this year. However, many opine that the benign October reports on consumer and producer prices, indicate that the Fed is done with raising interest rates.
Stocks will likely have more direction next week, as investors return from vacations and as retailers give fuller reports about Black Friday and the weekend. December should be another positive month for stocks, since the major underlying factors that have supported the advance since the summer are still in place.
Shares of Boeing Co. closed up $1.98 to $91.10, after winning a $5.5 billion order for 25 planes from Korean Air Co. Additionally, former Boeing unit Spirit Aerosystems Holdings Inc. priced its IPO at $26 a share, above the $23 to $25 a range.
Stock of Verizon Communications closed up $0.46 or 1.3% to $35.13, after Credit Suisse First Boston upgraded it to "outperform" from "neutral". It believes that the company is setting itself up for earnings growth as dilution from its FiOS Internet service reaches its peak.
Stock of Google closed up $14.60 or 3% to $509.65, as the search engine leader shot past $500 for the first time. The Internet search engine unveiled discounts for online shoppers who use its payment service during the holiday season.
Stock of Medtronic closed up $4.60 or 9.4% to $53.55, as it reported higher than expected quarterly earnings. Its quarterly profit beat expectations as it gained share from rivals in the market for implantable devices that manage irregular heart rhythms.
Maker of iPod, Apple closed up $2.13 to $88.60 - at an all-time high as investors expressed optimism about the strength of the company's iPod sales in the crucial holiday period. There is also speculation that it is working on the launch of an Iphone that would combine the capability of its blockbuster Ipod media player with a phone.
U.S. light crude oil for January delivery rose $1.37 to settle at $60.17 a barrel on the New York Mercantile Exchange. The rise in price is owing to the news that Alyeska Pipeline Service Co. has cut flow in the 800-mile Trans-Alaska Pipeline to 25% of normal capacity as high winds stymied tanker loadings in Valdez, Alaska.
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