Market ends lower for the week
By Rick Paler
Last week the markets decided to a breather and ended lower as traders took profits amidst a string of earnings warnings. Crude oil prices not help matters, but compounded fears that higher prices would affect the economy. Economic news for the week was mixed and bond traders flattened out the yield curve.
The string of recent earnings warnings continued last week with several companies lowering their earnings guidance for the upcoming quarter. This week it was CarMax (KMX), Colgate-Palmolive (CL), Ethan Allen (ETH), The New York Times (NYT), PMC Sierra (PMCS), RF Micro Devices (RFMD), UT Starcom (UTSI) and Wendy’s (WEN), Colgate-Palmolive (CL) said that their earnings for the second half of the year would be far below analyst estimates. The company cited marketing expenses and higher material cost. The company now expects third and fourth quarter earnings to be $0.57 - $0.59 per share. Wendy’s (WEN) shares fell when the company slashed their full year earnings guidance. The company announced that their full year earnings expectations would be $2.25 - $2.30 per share. Analyst had expected the company to earn $2.32 - $2.37 per share.
Although over the last two weeks we have had a string of earnings warnings, earnings for the quarter are expected to come in at a growth rate of 14.3% for the S&P 500. Additionally the negative –to-positive ratio is currently at 1.9. Both of these are better than their historical averages of 7% and 2.0 respectively.
Crude oil prices continue to climb and last Thursday hit a new high at $49.00 per barrel. Supply concerns continue as world wide demand increases due to the global economic recovery. Also pressuring prices higher are the string of hurricanes in the Gulf Coast. The hurricanes have caused many refineries to close down. Not helping prices are continuing problems at Yukos (YUKOY), Russia’s largest oil exporter continues to battle the Russian government over taxes. The company announced this week that they had suspended exports of oil to China and Lithuania. The company also continues to warn of bankruptcy.
In corporate new last week AutoZone (AZO) announced net income of only $2.83 per share. This included a $0.12 per share gain from warranty negotiations, missing Wall Streets estimates of $2.56. Sales for the period only grew by 0.3% and same store sales declines 3%.
American International Group, Inc. (AIG) announced that AIG and its subsidiary company AIG Financial Products Corp. (AIGFP) were informed that the SEC is considering bringing action against the companies for alleged violations of federal securities laws.
General Electric (GE) issued a statement following the SEC Order that found that proxy statements and Form 10-k “failed to fully describe the substantial benefits that Welch would receive as part of the agreement”. The company statement said that GE cooperated fully with the SEC’s informal investigation into former COE Jack Welch’s Employment and Post-Retirement Consulting Agreement. The agreement allowed Mr. Welch to use GE aircraft, offices, apartments and financial services for life.
ConocoPhillips (COP) approved a 16% increase in the company’s dividend rate. The new quarterly dividend rate will be $0.50 per share. In separate news, Vagit Alekperov CEO of OAO Lukoil Holdings (LKOH.RS) said that company has not discussed the possibility of selling a stake to Conoco. Reports had been circulating that Conoco plans to win the privatization auction with a 7.6% stake in Lukoil and plans to increase the stake to 20%.
Walt Disney Co.’s (DIS) board of directors reaffirmed their support for embattled CEO Michael Eisner. A shareholders group led by Roy Disney wants Mr. Eisner to resign before next years annual shareholders meeting. Mr. Eisner recently announced that he would resign at the end of his current contract that expires in 2006.
General Mills (GIS) posted earnings of $0.55 per share, which was below analyst estimates of $0.60 per share. The company cited higher commodity prices but reaffirmed their full year earnings guidance.
In economic news, the highlight for the week was the FOMC meeting. As expected the Federal Reserve moved interest rates higher. It was the third time the Federal Reserve raised interest rates this year as they attempt to head off inflation as the economy continues to recover. The closely watch minutes on the meeting stated that the slowdown in the economy was temporary and that their long term view was that the economy would continue to expand. In their statement they said “The Committee believes that policy accommodation can be removed at a pace that is likely to be measured.” The Federal Funds rate now stands at 1.75% up from 1.50%.
Housing starts for August were up 0.6% to an annual rate of 2.0 million units versus the estimate by economist of 1.93 million units. Building permits missed expectations in August coming in at 1.952 million units. The expectation was for 1.985 million units.
The Leading Index, an index that measures economic activity in the future fell 0.3% in August below economist estimates of a 0.2% drop. This was the third consecutive drop, which suggests economic growth is slowing.
Bond traders have flattened out the yield curve as short term interest rates rise quicker than long term rates. It may also be an indication that traders feel the economy is slowing down. The 5 year note closed at 3.31%. The 10 year Treasury note closed lower on the week yielding 4.02%, while the 30 year bond also closed lower for the week yielding 4.79%.
Next week, I would expect the markets to continue to trade within the narrow rage that has established over the last few months. This is due to traders waiting for the third quarter earnings season, the uncertainty of the presidential election and the threat of a terrorist attack in the United States before the election.
Companies releasing earnings next week include the following: Walgreen (WAG), PepsiCo (PEP), Constellation Brands, Inc. (STZ).
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Friday, September 24, 2004
Friday, September 17, 2004
Weekly Market Review 09-17-2004
The S&P500 post gains for the sixth straight week
By Rick Paler
This week the S&P 500 posted a modest gain for the week. It was the sixth consecutive weekly gain. Trading volume remained low, which indicates the gains might not be long lasted. Typically a market gain with heavy volume indicates that the rally can be sustained.
During the week oil prices continued to rise and economic data was mixed. Several companies warned about their earning this week. While bond traders wait for next weeks Federal Open Market Committee meeting next week.
This week oil prices rose as hurricane Ivan hit the Gulf Coast, causing oil facilities in the area shut down. Yukos Oil (YUKOY) the largest exporter of oil in Russia revealed that it was close to bankruptcy and would stop exporting oil to China. Oil ended up 6.5% to $45.59 a barrel for the week.
In economic news several reports were released this week showing that the economy, which had began to slow down is still growing strongly. The weakest report of the week was the Philadelphia Fed Business Activity Index for September came in at 13.4, below economist expectations of 25.0. The index measures economic activity and any number above zero reflects economic growth.
This came on the back of a very strong Empire Manufacturing Index. The index surged in September to 28.3 from 13.2 the prior month. The reading blew away economists expectations of 20.0 for the New York area.
A favorable CPI report for August showed that both the total and core-CPI numbers came in low at 0.1%. Since inflation is under control, the Federal Reserve should be able to raise interest rates at a measured pace. What is not being spoken about is the Federal Reserves deceleration in the money supply. This indicates that the Federal Reserve’s monetary policy is tighter than at first glance. Next week the Federal Open Market Committee meets on Tuesday. It is my expectation that they will raise interest rates another 25 basis points bringing the Fed Funds Rate to 1.75%. I expect the Federal Reserve to raise rates slowly until interest rates are at a more neutral stance at 3.75%.
In cooperate news this week several companies warned that their third quarter earnings would not meet analyst expectations. Companies issuing warnings this week were Coca-Cola (KO), Cardinal Health (CAH) Office Depot (ODP) and Nortel Networks (NT).
Coca-Cola (KO) issued earnings guidance for the third quarter that disappointed the Street. The company issued guidance of $0.46 - $0.48 per share, below previous estimates of $0.54 per share. The company cited rain and cooler weather in Europe and volume trends in the United States. CEO Neville Isdell said “They are symptoms of problems that demand strong corrective actions and initiatives that will put this company firmly on its proper growth course. That is my unmistakable and immediate objective”.
Cardinal Health (CAH) said that they made a request to the SEC for an extension in filing its Form 10-k for 2004. The company said they would have to restate earnings for 2001 – 2003 and the first quarter of 2004. The company also announced that their net income for the first quarter 2005 would fall 25% and 10% - 15% for the first half of 2005.
Walt Disney Company’s (DIS) Michael Eisner, the embattled CEO, last week said that he would be stepping down from his position in 2006 when his current contract expires. Shareholders led by Roy Disney and Stanley Gold were able to get Mr. Eisner to step down as Chairman earlier this year. They are now demanding the Mr. Eisner be removed as CEO by the company’s 2005 annual meeting.
Patterson Companies (PDCO) the dental, pet veterinarian and rehabilitation supply company announced a 2-for-1 stock split and authorized the repurchase of 3 million shares or 6 million shares post split.
Delta Airlines (DAL) may be going the way of US Airways (UAIRQ). US Airways recently declared bankruptcy and now Delta Airlines auditor Deloitte & Touche LLP expressed doubt about the company’s ability to continue as a going concern.
Qualcomm (QCOM) was under pressure, when the company announced that they are reviewing how the company accounts for royalty payments. They also announced that they see earnings coming in at $0.28 - $0.30 per share. Wall Street analyst had expected earnings of $0.29 per share.
Bond trading was light this week in front of next weeks FOMC meeting. The 5 year Treasury note closed at 3.32%. The 10 year note and the 30 year bond closed at 4.11% and 4.90% respectively.
The market should continue its slight rally into the election as long as the polls show that President George W. Bush has a sizable lead over Senator John Kerry. This is because the market does not like uncertainty, not because the market likes one over the other. With President Bush, the market knows his policies, whereas with Senator Kerry it is an unknown.
The third quarter earnings season is right around the corner. I expect the strong earnings trend to continue. Earnings growth for the S&P 500 will not be in the mid 20% range like the last few quarters. I expect earnings growth for the S&P 500 to be close to 15%. The long term average earnings growth is 7%. Currently, the negative-to-positive preannouncement ratio is running at 1.7, which is below the historical level of 2.0.
Next week all eyes will be on the FOMC which will meet Tuesday to discuss raising interest rates. Companies releasing earnings are the following: Nike (NKE), General Mills (GIS), AutoZone (AZO), Goldman Sachs (GS), Bed Bath & Beyond (BBY) and FedEx (FDX).
By Rick Paler
This week the S&P 500 posted a modest gain for the week. It was the sixth consecutive weekly gain. Trading volume remained low, which indicates the gains might not be long lasted. Typically a market gain with heavy volume indicates that the rally can be sustained.
During the week oil prices continued to rise and economic data was mixed. Several companies warned about their earning this week. While bond traders wait for next weeks Federal Open Market Committee meeting next week.
This week oil prices rose as hurricane Ivan hit the Gulf Coast, causing oil facilities in the area shut down. Yukos Oil (YUKOY) the largest exporter of oil in Russia revealed that it was close to bankruptcy and would stop exporting oil to China. Oil ended up 6.5% to $45.59 a barrel for the week.
In economic news several reports were released this week showing that the economy, which had began to slow down is still growing strongly. The weakest report of the week was the Philadelphia Fed Business Activity Index for September came in at 13.4, below economist expectations of 25.0. The index measures economic activity and any number above zero reflects economic growth.
This came on the back of a very strong Empire Manufacturing Index. The index surged in September to 28.3 from 13.2 the prior month. The reading blew away economists expectations of 20.0 for the New York area.
A favorable CPI report for August showed that both the total and core-CPI numbers came in low at 0.1%. Since inflation is under control, the Federal Reserve should be able to raise interest rates at a measured pace. What is not being spoken about is the Federal Reserves deceleration in the money supply. This indicates that the Federal Reserve’s monetary policy is tighter than at first glance. Next week the Federal Open Market Committee meets on Tuesday. It is my expectation that they will raise interest rates another 25 basis points bringing the Fed Funds Rate to 1.75%. I expect the Federal Reserve to raise rates slowly until interest rates are at a more neutral stance at 3.75%.
In cooperate news this week several companies warned that their third quarter earnings would not meet analyst expectations. Companies issuing warnings this week were Coca-Cola (KO), Cardinal Health (CAH) Office Depot (ODP) and Nortel Networks (NT).
Coca-Cola (KO) issued earnings guidance for the third quarter that disappointed the Street. The company issued guidance of $0.46 - $0.48 per share, below previous estimates of $0.54 per share. The company cited rain and cooler weather in Europe and volume trends in the United States. CEO Neville Isdell said “They are symptoms of problems that demand strong corrective actions and initiatives that will put this company firmly on its proper growth course. That is my unmistakable and immediate objective”.
Cardinal Health (CAH) said that they made a request to the SEC for an extension in filing its Form 10-k for 2004. The company said they would have to restate earnings for 2001 – 2003 and the first quarter of 2004. The company also announced that their net income for the first quarter 2005 would fall 25% and 10% - 15% for the first half of 2005.
Walt Disney Company’s (DIS) Michael Eisner, the embattled CEO, last week said that he would be stepping down from his position in 2006 when his current contract expires. Shareholders led by Roy Disney and Stanley Gold were able to get Mr. Eisner to step down as Chairman earlier this year. They are now demanding the Mr. Eisner be removed as CEO by the company’s 2005 annual meeting.
Patterson Companies (PDCO) the dental, pet veterinarian and rehabilitation supply company announced a 2-for-1 stock split and authorized the repurchase of 3 million shares or 6 million shares post split.
Delta Airlines (DAL) may be going the way of US Airways (UAIRQ). US Airways recently declared bankruptcy and now Delta Airlines auditor Deloitte & Touche LLP expressed doubt about the company’s ability to continue as a going concern.
Qualcomm (QCOM) was under pressure, when the company announced that they are reviewing how the company accounts for royalty payments. They also announced that they see earnings coming in at $0.28 - $0.30 per share. Wall Street analyst had expected earnings of $0.29 per share.
Bond trading was light this week in front of next weeks FOMC meeting. The 5 year Treasury note closed at 3.32%. The 10 year note and the 30 year bond closed at 4.11% and 4.90% respectively.
The market should continue its slight rally into the election as long as the polls show that President George W. Bush has a sizable lead over Senator John Kerry. This is because the market does not like uncertainty, not because the market likes one over the other. With President Bush, the market knows his policies, whereas with Senator Kerry it is an unknown.
The third quarter earnings season is right around the corner. I expect the strong earnings trend to continue. Earnings growth for the S&P 500 will not be in the mid 20% range like the last few quarters. I expect earnings growth for the S&P 500 to be close to 15%. The long term average earnings growth is 7%. Currently, the negative-to-positive preannouncement ratio is running at 1.7, which is below the historical level of 2.0.
Next week all eyes will be on the FOMC which will meet Tuesday to discuss raising interest rates. Companies releasing earnings are the following: Nike (NKE), General Mills (GIS), AutoZone (AZO), Goldman Sachs (GS), Bed Bath & Beyond (BBY) and FedEx (FDX).
Friday, August 20, 2004
Weekly Market Review 08-20-2004
The Crude Reality
By Rick Paler
I am now starting to sound like a broken record, but once again Wall Streets focus remains fixated on oil. This week oil hit another record high when it reached $49.40 on Friday before dropping back to close at $47.86. Supply concerns continue to linger as violence increased in Iraq. Shiite militants related to Muqtada al-Sadr attacked a pipeline lending some traders to question the stability of Iraq’s output. The Department of Energy also announced a larger than expected decline in gasoline inventories.
Higher oil prices will continue to be a drag on the market going forward. Higher crude prices act as a tax on the world wide economy, thereby slowing down economic growth. Currently, it is my belief that the market has already priced in $50.00 per barrel oil prices. Although continued violence in the middle-east, increasing world wide demand, and the possibility of terrorism have the ability to push prices even higher.
Overall the market was able to pull off a stealth rally ending the week higher on low volume. Earnings reports were mixed this week. While Google began trading and economic data was mixed.
Overall earning this quarter continues to be very strong as the second quarter earnings season slows down. Home Depot (HD) the world’s largest home improvement retailer posted earnings of $0.70 per share topping estimated of $0.64per share. Sales surged 11% to $20 billion. The company cited strong average ticket growth in every selling category. The company also increased their fiscal year guidance saying they expect earnings to grow 14% - 17% up from 10% - 14%.
Estee Lauder (EL) reported that their fourth-quarter net income surged 34% and sales rose 15% to $1.4 billion on strong international sales. The company posted earnings of $0.31 per share missing analyst estimates of $0.32 per share. The company announced that they project to earn $1.88 - $1.93 per share for fiscal 2005 which would match Wall Streets estimates of $1.91 per share.
Hormel Foods Corp (HRL) reported that their fiscal third quarter earnings were $0.32 per share a penny below expectations. Sales jumped 15% to $1.16 billion from last years $1.01 billion. The company lowered guidance for the full year. The company cited higher grain prices. The company now is expected to earn $1.46 - $1.52 per share, from the prior street estimate of $1.62 per share.
PETsMart (PETM) net income for the second quarter rose 21% to $0.23 per share which matched analyst estimates. Sales rose to $806 million or 11%. The company credited strong demand for its higher margin services. The company also reaffirmed its full year earnings guidance of $1.18 per share up from $0.95 per share a year ago.
Google (GOOG) the internet search company began trading this week. The much anticipated IPO had numerous analysts questioning the company’s decision to bypass Wall Street by offering shares through a Dutch auction format. After problems with the offering, the company priced the shares at $85.00, which was below their initial price target of $108 - $135 per share. At the close of trading on Friday the company’s shares ended at $108.31.
In general corporate news ITT Industries Inc. (ITT) announced that it had received a $24.9 million dollar contract from the U.S Navy. The company will provide engineering software support for the tactical aircraft-warfare program.
Symantec Corp. (SYMC) announced the release of its latest line of consumer and home office internet security solutions. The leader of information security and makers of Norton AntiVirus, Norton Personal Firewall and Norton Internet Security said that the new versions for 2005 are designed to address the newest and most rampant online threats. Matthew Moynahan, Vice President of Consumer Products and Solutions said “Symantec’s new security products provide powerful, proactive defense to aggressively handle today’s most common and highly developed Internet threats, all with easy-to-use automated convenience for optimal computing in a connected world”.
Coca-Cola (KO) announce that basketball star LeBron James has worked with the company to produce a new POWERade drink. The new drink will be called FLAVA23 and have a unique “sourberry” flavor and burgundy color. The company stated that James was directly involved with every aspect of the creation of FLAVA23. In conjunction with the new drink POWERade commissioned DC Comics to produce a new comic titled “King James” that will feature LeBron James superhero-caliber basketball skills. The comic will be available for free with three purchases for the new drink.
Economic news this week was mixed. The closely watched CPI report for July came in at -.01% with the core rate at just 0.1%, both were below economist expectations and indicate that higher oil prices have not had an effect on inflation to date. The Philadelphia Fed’s Business Activity Index for August came in below estimates at 28.5. Economist had expected a decline to 30.0 from 36.1 for July. This came on the back of a very disappointing Empire Manufacturing Index earlier in the week. Each index measures business growth activities in their region.
It was a slow week in the Treasury market this week with yields lower across the yield curve for the week. The 5 year Treasury note closed yielding 3.40%. The 10 year note closed at 4.23% and the 30 year Treasury bond closed yielding 5.02%
This week should be a slow week with little volume as many traders try to get in a vacation before the school year begins. Analyst will continue to watch oil prices for market direction. If the U.S. military and the Iraq government can eliminate Shiite cleric Muqtada al-Sadr we could see a market rally.
Stocks to watch this week include the following companies: H.J. Heinz (HNZ), Williams-Sonoma (WSM), Chico’s FAS (CHS), and Patterson Companies Inc. (PDCO)
By Rick Paler
I am now starting to sound like a broken record, but once again Wall Streets focus remains fixated on oil. This week oil hit another record high when it reached $49.40 on Friday before dropping back to close at $47.86. Supply concerns continue to linger as violence increased in Iraq. Shiite militants related to Muqtada al-Sadr attacked a pipeline lending some traders to question the stability of Iraq’s output. The Department of Energy also announced a larger than expected decline in gasoline inventories.
Higher oil prices will continue to be a drag on the market going forward. Higher crude prices act as a tax on the world wide economy, thereby slowing down economic growth. Currently, it is my belief that the market has already priced in $50.00 per barrel oil prices. Although continued violence in the middle-east, increasing world wide demand, and the possibility of terrorism have the ability to push prices even higher.
Overall the market was able to pull off a stealth rally ending the week higher on low volume. Earnings reports were mixed this week. While Google began trading and economic data was mixed.
Overall earning this quarter continues to be very strong as the second quarter earnings season slows down. Home Depot (HD) the world’s largest home improvement retailer posted earnings of $0.70 per share topping estimated of $0.64per share. Sales surged 11% to $20 billion. The company cited strong average ticket growth in every selling category. The company also increased their fiscal year guidance saying they expect earnings to grow 14% - 17% up from 10% - 14%.
Estee Lauder (EL) reported that their fourth-quarter net income surged 34% and sales rose 15% to $1.4 billion on strong international sales. The company posted earnings of $0.31 per share missing analyst estimates of $0.32 per share. The company announced that they project to earn $1.88 - $1.93 per share for fiscal 2005 which would match Wall Streets estimates of $1.91 per share.
Hormel Foods Corp (HRL) reported that their fiscal third quarter earnings were $0.32 per share a penny below expectations. Sales jumped 15% to $1.16 billion from last years $1.01 billion. The company lowered guidance for the full year. The company cited higher grain prices. The company now is expected to earn $1.46 - $1.52 per share, from the prior street estimate of $1.62 per share.
PETsMart (PETM) net income for the second quarter rose 21% to $0.23 per share which matched analyst estimates. Sales rose to $806 million or 11%. The company credited strong demand for its higher margin services. The company also reaffirmed its full year earnings guidance of $1.18 per share up from $0.95 per share a year ago.
Google (GOOG) the internet search company began trading this week. The much anticipated IPO had numerous analysts questioning the company’s decision to bypass Wall Street by offering shares through a Dutch auction format. After problems with the offering, the company priced the shares at $85.00, which was below their initial price target of $108 - $135 per share. At the close of trading on Friday the company’s shares ended at $108.31.
In general corporate news ITT Industries Inc. (ITT) announced that it had received a $24.9 million dollar contract from the U.S Navy. The company will provide engineering software support for the tactical aircraft-warfare program.
Symantec Corp. (SYMC) announced the release of its latest line of consumer and home office internet security solutions. The leader of information security and makers of Norton AntiVirus, Norton Personal Firewall and Norton Internet Security said that the new versions for 2005 are designed to address the newest and most rampant online threats. Matthew Moynahan, Vice President of Consumer Products and Solutions said “Symantec’s new security products provide powerful, proactive defense to aggressively handle today’s most common and highly developed Internet threats, all with easy-to-use automated convenience for optimal computing in a connected world”.
Coca-Cola (KO) announce that basketball star LeBron James has worked with the company to produce a new POWERade drink. The new drink will be called FLAVA23 and have a unique “sourberry” flavor and burgundy color. The company stated that James was directly involved with every aspect of the creation of FLAVA23. In conjunction with the new drink POWERade commissioned DC Comics to produce a new comic titled “King James” that will feature LeBron James superhero-caliber basketball skills. The comic will be available for free with three purchases for the new drink.
Economic news this week was mixed. The closely watched CPI report for July came in at -.01% with the core rate at just 0.1%, both were below economist expectations and indicate that higher oil prices have not had an effect on inflation to date. The Philadelphia Fed’s Business Activity Index for August came in below estimates at 28.5. Economist had expected a decline to 30.0 from 36.1 for July. This came on the back of a very disappointing Empire Manufacturing Index earlier in the week. Each index measures business growth activities in their region.
It was a slow week in the Treasury market this week with yields lower across the yield curve for the week. The 5 year Treasury note closed yielding 3.40%. The 10 year note closed at 4.23% and the 30 year Treasury bond closed yielding 5.02%
This week should be a slow week with little volume as many traders try to get in a vacation before the school year begins. Analyst will continue to watch oil prices for market direction. If the U.S. military and the Iraq government can eliminate Shiite cleric Muqtada al-Sadr we could see a market rally.
Stocks to watch this week include the following companies: H.J. Heinz (HNZ), Williams-Sonoma (WSM), Chico’s FAS (CHS), and Patterson Companies Inc. (PDCO)
Friday, August 13, 2004
Market Wrap Up 8-13-2004
Oil Prices Hit Record Highs
By Rick Paler
Oil prices hit record highs this week of $46.65 per barrel. Traders continue to focus on supply concerns and some analysts are now predicting oil prices to reach $50.00 per barrel. Continued problems at Yukos (YUKOY) Russia’s largest oil exporter hurt oil prices, when the company announced that they are running out of money and may be forced to cut production. The company also announced that they received default notice on a $1.6 billion bank loan. The company is currently in a tax dispute with the Russian government. Also contributing to higher oil prices is the threat of terrorism and the recall vote in Venezuela. On the positive side Saudi Arabia said that they have 1.3 million barrels in spare capacity that could be used immediately to increase world wide supplies. Continued high oil prices have the ability to increase inflation and slow the world wide economy.
This week we also had a flood of economic data that was mixed and disappointing earnings announcements in the technology sector. This caused mixed results in the market for the week.
In corporate new a majority of companies continue to post strong earnings result. Cisco Systems (CSCO) announced earnings of $0.21 per share ahead of Wall Streets estimates of $0.20 per share. Sales climbed 26% to $5.9 billion. The company did disappoint, when they also announced that they saw rising inventories and said that future sales might not meet analyst estimates.
Hewlett-Packard (HPQ) disappointed when they released their earnings ahead of schedule and posted earnings of only $0.24 per share, the street had expected earnings of $0.31 per share. The company also lowered guidance to $0.35 - $0.39 per share for their fiscal fourth quarter from the prior $0.43 per share.
ITT Industries Inc. (ITT) announced that they completed their purchase of Eastman Kodak’s (EK) remote sensing systems business for $275 million in cash. The company expects the purchase to improve its space payload and service product offerings to its commercial, scientific and U.S. Military customers.
Church & Dwight (CHD) reported net income of $0.45 per share and sales jumped 33% to $340.8 million. The company said they had taken a charge for the purchase of the remaining stake in Armel LLC. The company also announced a 3-for1 stock split effective September 1.
Walt Disney Company (DIS) reported a 21% increase in net income per share when they announced earnings of $0.29 per share, topping the Streets estimates of $0.27 per share. Sales growth came in up 17% compared with a year ago. The company cited strong attendance at its theme parks and sales of DVD’s.
Marsh & McLennan (MMC) was in the news when it was announced that the nation’s largest insurance broker was being sued by United Policyholders, a not-for-profit organization. The suit claims that the company poorly disclosed commissions from insures.
Wal-Mart Stores (WMT) reported strong earnings of $0.62 per share, a penny above analyst estimates. Sales increased 11% to $69.7 billion but missed estimates of $70.7 billion. The company also raised their guidance for third quarter sales to 3% - 5% from the previous estimate of 2% - 4%.
In economic news, The Federal Reserve increased interest rates, the PPI and trade deficit surprised economist, while the weekly jobless claims and Consumer Sentiment came in below expectations.
As expected the Federal Reserve raised interest rates this week to 1.5%. In their statement they said that higher oil prices had slowed economic growth and hindered the improving job market. They also said that “the Committee believes that policy accommodation can be removed at a pace that is likely to be measured”.
The core Producer Price Index rose only 0.1% for July versus 0.2% for the fist half of they year and estimates of a 0.3% rise. Many Street analysts say that this indicates that higher oil prices have not reached consumers yet.
The biggest surprise to economist was the trade deficit. Economist had expected the deficit to rise to $47 billion, but the deficit rocketed to a record high of $55.8 billion. Treasury Secretary Snow said that the deficit indicates that the world wide economy is slowing.
Weekly Jobless claim came in below estimates at falling 4,000 to 333,000 versus the estimate of 340,000 new claims. A number below 400,000 indicates an improving job market.
The preliminary University of Michigan Consumer Sentiment report fell to 94.0 in August from 96.7 in July, which was below estimates of a rise to 97.2. This suggests that consumers are aware of the slow down in the economy and fear higher oil prices.
In bond trading the 5 year Treasury note closed the week higher yielding 3.41%, while the 10 year note and 30 year bond also closed the week yielding 4.22% and 5.01% respectively.
Next week the Summer Olympics and the possibility of terrorism will be on everyone’s minds. Companies of interest announcing earnings next week are the following; Kmart (KMRT), Home Depot (HD), Estee Lauder Companies (EL), TJX Companies (TJX), Nestle S.A (NSRGY) Gap Inc (GPS), and PETsMart (PETM)
By Rick Paler
Oil prices hit record highs this week of $46.65 per barrel. Traders continue to focus on supply concerns and some analysts are now predicting oil prices to reach $50.00 per barrel. Continued problems at Yukos (YUKOY) Russia’s largest oil exporter hurt oil prices, when the company announced that they are running out of money and may be forced to cut production. The company also announced that they received default notice on a $1.6 billion bank loan. The company is currently in a tax dispute with the Russian government. Also contributing to higher oil prices is the threat of terrorism and the recall vote in Venezuela. On the positive side Saudi Arabia said that they have 1.3 million barrels in spare capacity that could be used immediately to increase world wide supplies. Continued high oil prices have the ability to increase inflation and slow the world wide economy.
This week we also had a flood of economic data that was mixed and disappointing earnings announcements in the technology sector. This caused mixed results in the market for the week.
In corporate new a majority of companies continue to post strong earnings result. Cisco Systems (CSCO) announced earnings of $0.21 per share ahead of Wall Streets estimates of $0.20 per share. Sales climbed 26% to $5.9 billion. The company did disappoint, when they also announced that they saw rising inventories and said that future sales might not meet analyst estimates.
Hewlett-Packard (HPQ) disappointed when they released their earnings ahead of schedule and posted earnings of only $0.24 per share, the street had expected earnings of $0.31 per share. The company also lowered guidance to $0.35 - $0.39 per share for their fiscal fourth quarter from the prior $0.43 per share.
ITT Industries Inc. (ITT) announced that they completed their purchase of Eastman Kodak’s (EK) remote sensing systems business for $275 million in cash. The company expects the purchase to improve its space payload and service product offerings to its commercial, scientific and U.S. Military customers.
Church & Dwight (CHD) reported net income of $0.45 per share and sales jumped 33% to $340.8 million. The company said they had taken a charge for the purchase of the remaining stake in Armel LLC. The company also announced a 3-for1 stock split effective September 1.
Walt Disney Company (DIS) reported a 21% increase in net income per share when they announced earnings of $0.29 per share, topping the Streets estimates of $0.27 per share. Sales growth came in up 17% compared with a year ago. The company cited strong attendance at its theme parks and sales of DVD’s.
Marsh & McLennan (MMC) was in the news when it was announced that the nation’s largest insurance broker was being sued by United Policyholders, a not-for-profit organization. The suit claims that the company poorly disclosed commissions from insures.
Wal-Mart Stores (WMT) reported strong earnings of $0.62 per share, a penny above analyst estimates. Sales increased 11% to $69.7 billion but missed estimates of $70.7 billion. The company also raised their guidance for third quarter sales to 3% - 5% from the previous estimate of 2% - 4%.
In economic news, The Federal Reserve increased interest rates, the PPI and trade deficit surprised economist, while the weekly jobless claims and Consumer Sentiment came in below expectations.
As expected the Federal Reserve raised interest rates this week to 1.5%. In their statement they said that higher oil prices had slowed economic growth and hindered the improving job market. They also said that “the Committee believes that policy accommodation can be removed at a pace that is likely to be measured”.
The core Producer Price Index rose only 0.1% for July versus 0.2% for the fist half of they year and estimates of a 0.3% rise. Many Street analysts say that this indicates that higher oil prices have not reached consumers yet.
The biggest surprise to economist was the trade deficit. Economist had expected the deficit to rise to $47 billion, but the deficit rocketed to a record high of $55.8 billion. Treasury Secretary Snow said that the deficit indicates that the world wide economy is slowing.
Weekly Jobless claim came in below estimates at falling 4,000 to 333,000 versus the estimate of 340,000 new claims. A number below 400,000 indicates an improving job market.
The preliminary University of Michigan Consumer Sentiment report fell to 94.0 in August from 96.7 in July, which was below estimates of a rise to 97.2. This suggests that consumers are aware of the slow down in the economy and fear higher oil prices.
In bond trading the 5 year Treasury note closed the week higher yielding 3.41%, while the 10 year note and 30 year bond also closed the week yielding 4.22% and 5.01% respectively.
Next week the Summer Olympics and the possibility of terrorism will be on everyone’s minds. Companies of interest announcing earnings next week are the following; Kmart (KMRT), Home Depot (HD), Estee Lauder Companies (EL), TJX Companies (TJX), Nestle S.A (NSRGY) Gap Inc (GPS), and PETsMart (PETM)
Friday, August 06, 2004
Weekly Market Review 08-06-2004
Terrorism, Oil Prices and Jobs Report Send Markets Lower
By Rick Paler
The stock market continued to decline this week on higher oil prices and a poor Non-Farm Payrolls Report. This caused the DOW, S&P 500 and Nasdaq to close the week at new lows for the year. Oil again this week hit record highs as traders pushed the price of crude on supply fears and terrorism concerns.
Terrorism was in the news again when a car bomb exploded just outside of Athens Greece leading to fears of a terrorist attract during the Olympic games that begins at the end of next week. The department of Homeland Security also announced that financial institutions in the United State are key targets for Al Queda. This led to a raising of the terror alert to high in New York, Washington D.C. and New Jersey. Additional targets were identified in San Francisco, but the terror threat for San Francisco and the rest of the nation remained unchanged at Elevated.
OPEC President Purnomo Yusgiantoro raised concerns with traders when he announced that Saudi Arabia’s planned product increase could not go through as early as planed. Traders were also shocked when Russia’s Justice Ministry said that Russian oil giant Yukos (YUKOY) would not be allowed to use frozen funds to pay for their day-to-day operations reversing their previous statements. Yukos has been in a battle with the government over paying past taxes.
Non-farm Payrolls disappointed Wall Street when it was announced that an mere 32, 000 jobs were created in July when economist had expected job growth in July on 243, 000 new job. This was the slowest job growth in eight months. This came on the back of last months disappointing numbers.
The week was not all bad news though. Earnings continue to surprise on the upside for the second quarter. 82% of the S&P 500 companies have now released their earnings for the second quarter. Of the companies that have reports to date, 69% of the companies have beat analyst earnings expectations with only 14% missing their earnings target. Overall earnings for the S&P 500 are now running at a 28% growth rate over a year ago.
In economic news the Non-Farm Payrolls Report disappointed, but the unemployment rate and weakly jobless claims came in better then expected. The unemployment rate came in at 5.5%, when economist had expected the rate of unemployment to stay unchanged at 5.6%. Weekly initial jobless claims fell unexpectedly to 336,000 from the estimated 340,000. Next week all eyes will be on the FOMC meeting on Tuesday to see if the Federal Reserve will again take action to raise interest rates.
In corporate news this week, Fifth Third Bancorp (FITB) announced that it had entered into an agreement to purchase First National Bankshares of Florida (FLB). Under the terms of the agreement First National Bankshares of Florida will be acquired for approximately $1.6 billion or $25.00 per share.
Proctor & Gamble (PG) announced earnings that exceeded the Streets estimates of $0.48 per share. The company earned $0.50 per share and sales climbed 19% to $13 billion. The company also announced that it expected their earnings to continue to growth at a double digit pace for 2005.
Tenet Healthcare continues to struggle. The company announced that they lost $0.06 per share versus the consensus of a $0.01 per share loss. Compounding their problems, the company announced that they received a subpoena from the U.S. Attorney’s Office and their CFO will resign.
Bond yield fell across the yield curve as traders flocked to bonds. The 5 year Treasury note closed at 3.37%. The 10 years yield closed lower at 4.21% and the 30 year bond fell to 5.03%.
Next week companies releasing earnings that are of interest include the following; Church & Dwight Co., Inc. (CHD), Cisco Systems (CSCO), UBS (UBS), Walt Disney (DIS), Target Corporation (TGT) Dell (DELL) and Wal-Mart Stores (WMT).
By Rick Paler
The stock market continued to decline this week on higher oil prices and a poor Non-Farm Payrolls Report. This caused the DOW, S&P 500 and Nasdaq to close the week at new lows for the year. Oil again this week hit record highs as traders pushed the price of crude on supply fears and terrorism concerns.
Terrorism was in the news again when a car bomb exploded just outside of Athens Greece leading to fears of a terrorist attract during the Olympic games that begins at the end of next week. The department of Homeland Security also announced that financial institutions in the United State are key targets for Al Queda. This led to a raising of the terror alert to high in New York, Washington D.C. and New Jersey. Additional targets were identified in San Francisco, but the terror threat for San Francisco and the rest of the nation remained unchanged at Elevated.
OPEC President Purnomo Yusgiantoro raised concerns with traders when he announced that Saudi Arabia’s planned product increase could not go through as early as planed. Traders were also shocked when Russia’s Justice Ministry said that Russian oil giant Yukos (YUKOY) would not be allowed to use frozen funds to pay for their day-to-day operations reversing their previous statements. Yukos has been in a battle with the government over paying past taxes.
Non-farm Payrolls disappointed Wall Street when it was announced that an mere 32, 000 jobs were created in July when economist had expected job growth in July on 243, 000 new job. This was the slowest job growth in eight months. This came on the back of last months disappointing numbers.
The week was not all bad news though. Earnings continue to surprise on the upside for the second quarter. 82% of the S&P 500 companies have now released their earnings for the second quarter. Of the companies that have reports to date, 69% of the companies have beat analyst earnings expectations with only 14% missing their earnings target. Overall earnings for the S&P 500 are now running at a 28% growth rate over a year ago.
In economic news the Non-Farm Payrolls Report disappointed, but the unemployment rate and weakly jobless claims came in better then expected. The unemployment rate came in at 5.5%, when economist had expected the rate of unemployment to stay unchanged at 5.6%. Weekly initial jobless claims fell unexpectedly to 336,000 from the estimated 340,000. Next week all eyes will be on the FOMC meeting on Tuesday to see if the Federal Reserve will again take action to raise interest rates.
In corporate news this week, Fifth Third Bancorp (FITB) announced that it had entered into an agreement to purchase First National Bankshares of Florida (FLB). Under the terms of the agreement First National Bankshares of Florida will be acquired for approximately $1.6 billion or $25.00 per share.
Proctor & Gamble (PG) announced earnings that exceeded the Streets estimates of $0.48 per share. The company earned $0.50 per share and sales climbed 19% to $13 billion. The company also announced that it expected their earnings to continue to growth at a double digit pace for 2005.
Tenet Healthcare continues to struggle. The company announced that they lost $0.06 per share versus the consensus of a $0.01 per share loss. Compounding their problems, the company announced that they received a subpoena from the U.S. Attorney’s Office and their CFO will resign.
Bond yield fell across the yield curve as traders flocked to bonds. The 5 year Treasury note closed at 3.37%. The 10 years yield closed lower at 4.21% and the 30 year bond fell to 5.03%.
Next week companies releasing earnings that are of interest include the following; Church & Dwight Co., Inc. (CHD), Cisco Systems (CSCO), UBS (UBS), Walt Disney (DIS), Target Corporation (TGT) Dell (DELL) and Wal-Mart Stores (WMT).
Friday, July 16, 2004
Weekly Market Review 07-16-2004
Market flirts with moving averages
By Rick Paler
The market closed lower for the third week in a row, as the major indices flirted with their 50 day and 200 day moving averages. Traders are looking at the moving averages to determine if the markets are heading lower. If the market breaks through its moving average on the down side, some traders will interpit this as a bearish sign.
Intel (INTC) helped drive the market lower after offering a disappointing second quarter report. The company announced second quarter earnings of $0.27 per share matching Wall Streets estimates. The company warned that its gross margins peaked for the cycle and lowered its gross margin forecast for the year from 62% to 60%. The company also announced that their inventory level had risen to a 10 year high.
Qualcomm (QCOM) announced a 2-for-1 stock split and said that they would be increasing their dividend to $0.07 per share from $0.05.
PepsiCo (PEP) second quarter earnings increased 12% over last year posting $0.61 per share matching analyst estimates. But some questioned the numbers posted by the company’s Frito-Lay unit. The popularity of the high protein low carb diets had effected the unit’s growth.
Pfizer (PFE) was in the news after the Chinese government overturned its local patent for Viagra. The company’s CEO Henry McKinnell said that the decision could affect the company’s desire to invest further in China. The company also announced this week that they were trimming their 2004 full year sales forecast to $52.5 - $53.0 billion from $54.0 billion.
Johnson & Johnson (JNJ) reported earnings of $0.82 per share topping the Streets estimates of $0.79 per share. Sales jumped 11% to $11.5 billion. The company also announced that they were raising their full-year profit guidance to $3.03 per share from $3.00.
In economic news, reports indicated that inflation might be slowing and the economy continues to expand. The closely watched Producer Price Index for June unexpectedly fell and the core Consumer Price Index, which excludes food and energy rose only 0.1%. Economist had expected an increase of 0.2%. The index, which measures inflation, indicates that the Federal Reserve might not have to raise interest rates in August.
The Philadelphia Fed’s Business Activity Index came in much higher than expected. The index which measures manufacturing came in at 36.1; economist had expected a reading of only 25.0.
Not all of the reports were rosy, the June Retail Sales, Industrial Production, Capacity Utilization and Consumer Confidence all missed their estimates.
In fixed income news the 5 year Treasury note closed yielding 3.67% up from last weeks 3.62%. The 10 year note yielded 4.48% and the 30 year bond yield ended at 5.21%.
Next week companies that will be releasing earnings are Plum Creek Timber (PCL), US Bancorp (USB), Leggett & Platt (LEG), SouthTrust Corp. (SOTR), Cerner Corp. (CERN), Colgate-Palmolive (CL), Symantec (SYMC), Synovus Financial Corp. (SNV), Pfizer (PFE), Sherwin-Williams (SHW), Bright Horizons Family Solutions (BFAM), Coca-Cola (KO) and Fortune Brands (FO).
By Rick Paler
The market closed lower for the third week in a row, as the major indices flirted with their 50 day and 200 day moving averages. Traders are looking at the moving averages to determine if the markets are heading lower. If the market breaks through its moving average on the down side, some traders will interpit this as a bearish sign.
Intel (INTC) helped drive the market lower after offering a disappointing second quarter report. The company announced second quarter earnings of $0.27 per share matching Wall Streets estimates. The company warned that its gross margins peaked for the cycle and lowered its gross margin forecast for the year from 62% to 60%. The company also announced that their inventory level had risen to a 10 year high.
Qualcomm (QCOM) announced a 2-for-1 stock split and said that they would be increasing their dividend to $0.07 per share from $0.05.
PepsiCo (PEP) second quarter earnings increased 12% over last year posting $0.61 per share matching analyst estimates. But some questioned the numbers posted by the company’s Frito-Lay unit. The popularity of the high protein low carb diets had effected the unit’s growth.
Pfizer (PFE) was in the news after the Chinese government overturned its local patent for Viagra. The company’s CEO Henry McKinnell said that the decision could affect the company’s desire to invest further in China. The company also announced this week that they were trimming their 2004 full year sales forecast to $52.5 - $53.0 billion from $54.0 billion.
Johnson & Johnson (JNJ) reported earnings of $0.82 per share topping the Streets estimates of $0.79 per share. Sales jumped 11% to $11.5 billion. The company also announced that they were raising their full-year profit guidance to $3.03 per share from $3.00.
In economic news, reports indicated that inflation might be slowing and the economy continues to expand. The closely watched Producer Price Index for June unexpectedly fell and the core Consumer Price Index, which excludes food and energy rose only 0.1%. Economist had expected an increase of 0.2%. The index, which measures inflation, indicates that the Federal Reserve might not have to raise interest rates in August.
The Philadelphia Fed’s Business Activity Index came in much higher than expected. The index which measures manufacturing came in at 36.1; economist had expected a reading of only 25.0.
Not all of the reports were rosy, the June Retail Sales, Industrial Production, Capacity Utilization and Consumer Confidence all missed their estimates.
In fixed income news the 5 year Treasury note closed yielding 3.67% up from last weeks 3.62%. The 10 year note yielded 4.48% and the 30 year bond yield ended at 5.21%.
Next week companies that will be releasing earnings are Plum Creek Timber (PCL), US Bancorp (USB), Leggett & Platt (LEG), SouthTrust Corp. (SOTR), Cerner Corp. (CERN), Colgate-Palmolive (CL), Symantec (SYMC), Synovus Financial Corp. (SNV), Pfizer (PFE), Sherwin-Williams (SHW), Bright Horizons Family Solutions (BFAM), Coca-Cola (KO) and Fortune Brands (FO).
Friday, July 09, 2004
Weekly Market Review 07-09-2004
Tech company’s warnings drive market lower
By Rick Paler
This week was shortened due to the 4th of July holiday. The shortened week did not help the market, as a flood of earnings warnings in the technology sector caused concern about the second quarter earnings season that begins next week.
The technology sector was hit hard this week when several big name technology companies reduced their earnings guidance for the second quarter and some lowered their full year guidance. Some of the companies that reduced guidance were; Veritas (VRTS), PeopleSoft (PSFT), Siebel Systems (SEBL), Storage Tech (STK) Computer Associates (CA) and BMC Software (BMC).
The market was also hurt this week by disappointing same-store sales for June and oil prices once again going above $40.00 dollars a barrel. On top of this, Homeland Security Secretary Tom Ridge announced terrorist are planning an attack to disrupt the presidential election this fall.
In corporate news Yahoo! (YHOO) shares traded lower after the company announced earnings of $0.08 per share meeting the street estimates that more than doubled last year’s results. Traders were unimpressed though with the company’s third quarter revenue guidance.
General Electric (GE) beat their second quarter earnings estimates by $0.01 reporting earnings of $0.38 per share. Sales also topped the Streets estimates as sales climbed 10.7% to $37.0 billion. The company said “this is the best economy we’ve seen in years.” GE raised their guidance for 2004 from $1.54 - $1.60 per share to $1.55 - $1.60 per share. Additionally the company said they expect 2005 profit growth of 10% - 15%.
Alcoa (AA) reported earnings $0.01 per share below analyst estimates at $0.46 per share up 86% from a year ago and sales increased 11% to $6.1 billion. The company credited stronger sales and higher prices, along with expense reduction.
In economic news Federal Reserve President Alfred Braddus said that the economy is strong and inflation is not a concern at this time. He added that the economy has moved into “sustained expansion” and that last months employment data although below what economist had expected was still “reasonably healthy”.
The June ISM non-manufacturing index came in at 59.9 lower than what economist estimated and below the May reading of 65.2. This could show signs that the economy while still growing is now moderating. This brings into question whether the Federal Reserve will take action to raise interest rates again in August.
The bond market was mixed as the 5 year Treasury notes yield increased to 3.62% from last weeks 3.60%. The 10 year notes yield was lower ending at 4.45% from 4.46% a week ago. The 30 year bonds yield was unchanged at 5.20%.
The economy is showing signs that while it is still growing; the rate of growth has slowed. This should not effect second quarter earnings season, as I still expect superb earnings growth for the S&P 500. We have entered a period of stagnation in the market as traders wait for earnings. Additionally there continues to be concern over terrorism and the outcome of the presidential election. At this point neither the market bulls nor the bears have an upper hand. Because of this the market should continue to trade within its current trading range.
Next week companies releasing earnings that are of interest are; Helen of Troy (HELE), Intel (INTC), Johnson & Johnson (JNJ), Bank of America (BAC), Fifth Third Bancorp (FITB) Citigroup (C) and PepsiCo (PEP)
By Rick Paler
This week was shortened due to the 4th of July holiday. The shortened week did not help the market, as a flood of earnings warnings in the technology sector caused concern about the second quarter earnings season that begins next week.
The technology sector was hit hard this week when several big name technology companies reduced their earnings guidance for the second quarter and some lowered their full year guidance. Some of the companies that reduced guidance were; Veritas (VRTS), PeopleSoft (PSFT), Siebel Systems (SEBL), Storage Tech (STK) Computer Associates (CA) and BMC Software (BMC).
The market was also hurt this week by disappointing same-store sales for June and oil prices once again going above $40.00 dollars a barrel. On top of this, Homeland Security Secretary Tom Ridge announced terrorist are planning an attack to disrupt the presidential election this fall.
In corporate news Yahoo! (YHOO) shares traded lower after the company announced earnings of $0.08 per share meeting the street estimates that more than doubled last year’s results. Traders were unimpressed though with the company’s third quarter revenue guidance.
General Electric (GE) beat their second quarter earnings estimates by $0.01 reporting earnings of $0.38 per share. Sales also topped the Streets estimates as sales climbed 10.7% to $37.0 billion. The company said “this is the best economy we’ve seen in years.” GE raised their guidance for 2004 from $1.54 - $1.60 per share to $1.55 - $1.60 per share. Additionally the company said they expect 2005 profit growth of 10% - 15%.
Alcoa (AA) reported earnings $0.01 per share below analyst estimates at $0.46 per share up 86% from a year ago and sales increased 11% to $6.1 billion. The company credited stronger sales and higher prices, along with expense reduction.
In economic news Federal Reserve President Alfred Braddus said that the economy is strong and inflation is not a concern at this time. He added that the economy has moved into “sustained expansion” and that last months employment data although below what economist had expected was still “reasonably healthy”.
The June ISM non-manufacturing index came in at 59.9 lower than what economist estimated and below the May reading of 65.2. This could show signs that the economy while still growing is now moderating. This brings into question whether the Federal Reserve will take action to raise interest rates again in August.
The bond market was mixed as the 5 year Treasury notes yield increased to 3.62% from last weeks 3.60%. The 10 year notes yield was lower ending at 4.45% from 4.46% a week ago. The 30 year bonds yield was unchanged at 5.20%.
The economy is showing signs that while it is still growing; the rate of growth has slowed. This should not effect second quarter earnings season, as I still expect superb earnings growth for the S&P 500. We have entered a period of stagnation in the market as traders wait for earnings. Additionally there continues to be concern over terrorism and the outcome of the presidential election. At this point neither the market bulls nor the bears have an upper hand. Because of this the market should continue to trade within its current trading range.
Next week companies releasing earnings that are of interest are; Helen of Troy (HELE), Intel (INTC), Johnson & Johnson (JNJ), Bank of America (BAC), Fifth Third Bancorp (FITB) Citigroup (C) and PepsiCo (PEP)
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