Traders-Blog.com

Today was a good day for the market. The Dow rose 75 points closing at 10,748.79. Besides, both the S&P and the Nasdaq rose today. The S&P rose 9.40 points closing at 1,200.20, while the Nasdaq closed at 2,051.70 after rising 20.45 points. After the blue chip gauge overturned 174 points on Tuesday to suffer its one-day loss since May 2003, the Dow has now recovered 137 points of that big decline.

Among some Dow components that had a good day on Thursday were Exxon Mobil, Caterpillar, and Altria Group. Furthermore, Boeing Co. was among the blue-chip gainers, raising 2.3 percent after Ryanair Holdings, an Irish low-cost airline, confirmed that it placed an order for 140 new 737-800 aircraft worth more than 4 billion. Ryanair said that after this order is delivered, it will carry in excess of 70 million passengers per year, which will make it Europe’s largest airline. In its current fiscal year to March 2006, the fast-growing airline expects to carry 34 million passengers.

Viacom, the New York-based media conglomerate, posted a quarterly loss of $18.44 billion, or $10.99 a share, compared with a net loss of $385.4 million, or 22 cents a share a year earlier. This record loss took place after cutting the value of its Infinity Broadcasting unit, realizing that the radio business may not recapture the audience and advertisers lost to the Internet and Satellite radio. According to Chief Executive Sumner Redstone, Infinity, the second U.S radio company, has failed to generate the sales growth promised five years ago when Viacom took full ownership of Infinity.

Quest Communications International Inc. is trying to outbid Verizon Communications Inc with an $8 billion in cash-and-stock offer by saying that it will pay cash sooner and giving MCI investors a hedge against a share drop. This means that MCI investors would receive a cash payment when the deal wins investors’ approval rather than when it closes. However, MCI, the second long-distance phone company rejected Qwest’s earlier proposal and accepted a $6.75 billion bid from Verizon. This new offer puts pressure on MCI Chief Executive Officer Michael Capellas to visit the deal again.

Crude hits new 4-month high after inventory reports showed stock fell last week. Crude oil delivery for April delivery fell 22 cents to $50.95 a barrel after peaking at $52.05 during the open call session. This price reflects the highest level since November 1st of last year. However, prices are now about $4 below the record high of $55.67 in October.
The OPEC cartel said that if prices rose further, it might raise the output to cool the market. In March 16, the cartel will meet in Iran.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter