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Due to an increase in the price of oil, and no major economic reports to focus on, the Dow fell 9.44 points, to close at 10,599.67. Besides, the S&P fell 2.49 points, to close at 1,213.61. On the other hand, the Nasdaq closed at 2,091.07, after rising slightly 2.94 points. U.S. light crude for July delivery rose to end session at $59.70 a barrel on the New York Mercantile Exchange. Treasury prices also influenced the market by sending yields lower after influential reports said that the Fed’s tightening cycle will “likely” end soon, which implies that rates could start coming down at the end of the year 2005.

Ford Motor Co., which is the second largest U.S automaker, cut its 2005 earnings forecasts for the second time this year, and said that it will eliminate more jobs due to weak sales in North America. The company is also eliminating 2005 bonuses for salaried managers worldwide and is suspending company matching grants for employees with 401(K) retirement plans effective on July 1st.

Among winners in the market, Intel Corp. added 28 cents to finish at $27.18. Besides, Texas Instruments, Inc., the number one maker of mobile-phone chips, added 36 cents, to close at $28. And, PMC-Sierra, the maker of chips for telecommunications equipment was raised to “equal weight” from “underweight” by analysts. Reports show that shares of PMC-Sierra will rise as profit margins improve.

According to Krispy Kreme’s executives,“six of the company’s officers should be discharged” due to accounting problems. A committee of independent directors is still investigating the company’s case, and is cooperating with a probe by the U.S. attorney for the Southern District of New York and the Securities and Exchange Commission. Shares of Krispy Kreme finished session down 1 cent to $7.66.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
Guaranteed monthly gains of 8% or your money back.