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The Dow increased 23.41 points, to close at 10,651.18. Besides, the Nasdaq closed at 2,179.74, after rising 1.14 points. Meanwhile, the S&P closed at 1,233.68, after rising 6.64 points. For the week, the Dow posted a 0.1 percent increase from its week-earlier close at 10,640. Besides, the Nasdaq composite rose 1 percent from last week.

Today, trade was very volatile due to investors’ worries about the performance of Google, and London’s explosions this week. Besides, police confirmed today that they fatally shot a man reported to be a suspected bomber outside a station at Stockwell in south London. This violence has pushed the pound lower against the dollar. The pound was down 0.01 percent at $17370. However, attacks in London helped shares of mass-transit security equipment to rally. For instance, Digital Recorders rose 22 percent to close at $2.99 and Global E Point increased 73 percent to close at $6.93.

In general, second-quarter earnings for most of the companies have been very positive. Today, Schlumberger Ltd. and Halliburton Co. lifted energy stocks. Schlumberger, which is the world’s largest oilfield-services company by market value, rallied $4.32, to close at $82.28. Besides, second-quarter profits were 76 cents per share, which was well above analysts’ expectations. Also, Halliburton increased $4.59 to close at $53.29. Again, results exceeded forecasts and expectations.

Nevertheless, Kimberly-Clark Corp., the maker of Scott tissue and Huggies diapers, posted its third straight profit decline and plans to cut as many as 6,000 jobs after losing sales to Procter &Gamble. The company’s second-quarter net income declined 7.2 percent, to $421.8 million as higher oil outweighed a sales gain of 8.1 percent.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

It was not a good day for the U.S stock market today. The Dow fell 61.38 points, to close at 10,627.77. Also, the Nasdaq fell 9.97 points, to close at 2,178.60. The S&P closed at 1,227.04, after decreasing 8.16 points.

Today, Google reported that that its second-quarter profit increased more than fourfold. Its earnings rose to $343 million, or $1.19 per share, from $79 million, or 30 cents last year. However, shares of Google fell $30.98, to $282.96 in after-hours. Net revenue of Google did not meet analysts’ expectations, and shares also lowered in price after company executives announced that there will be a slowdown in the third quarter.

Besides, Microsoft Corp. announced that its fiscal fourth-quarter profit climbed to $3.7 billion, or 34 cents per share, from $2.69 billion, or 25 cents per share last year. Besides, revenue for the three-month period ended June 30 increased to 9.4 percent to $10.6 billion from $9.29 million last year. However, as in the case of Google, results fell short from analysts’ expectations. Although Microsoft finished the session up 1 percent, to close at $26.44, during after-hours trading, the stock fell 1.9 percent to $25.94.

Today, there were also new explosions in London that impacted investors’ faith about the outlook of the economy. London police reported that there were four explosions in total on three sub-way stations and one bus. After these events, the dollar dropped 2.5 percent to 110.34 yen. Besides, news impacted the euro against the yen, pushing it down 1.2 percent, to 135.30 yen. Finally, September crude futures closed down $1.27 at $56.75 due to a decline in oil inventories.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

Today, it was a positive day for the stock market. U.S. stocks rose mainly due to an increase in the price of oil, and after a speech from the Federal Reserve Chairman Alan Greenspan. The Dow rose 42.59 points, to close at 10,689.15. Besides, the Nasdaq increased 15.39 points, to close at 2,188.57, while the S&P closed at 1,235.20, after rising 5.85 points.

EBay announced that its second-quarter profit rose 53 percent, demonstrating that the company is growing faster than expected. In late-after trading, shares of EBay rose 12 percent, to $39. However, the stock decreased during regular trading hours. EBay reported that it earned $291.6 million, or 21 cents per share, compared to $190.4 million, or 14 cents last year. In earnings, the company announced $307.2 million, or 22 cents per share, which was well above analysts’ expectations.

Nevertheless, General Motors (GM) did not post as good results as Ebay. For this quarter, GM posted its third straight unprofitable quarter due to a
reduction in production, and very generous discounts that led to a $1.2 billion loss in its North American automotive business. GM reported a net loss of $286 million, or 51 censt per share, compared with net income of $1.38 billion, or $2.42 per share last year. In general, GM’s worldwide automotive operations had a loss of $948 million in the second quarter. But, since 2002 GM has received more profits by providing auto loans, than from building and selling cars and trucks. Shares of GM fell 25 cents, to close at $36.58.

Crude for August delivery slid 1.3 percent, to finish session at $56.72 a barrel. The price of oil increased after a government report announced that U.S. stockspiles declined less than analysts forecast. Also, Greenspan said to the House Financial Services Commitee that the economy is “in a period of sustained growth and contained inflation pressures.” Finally, Greenspan who will retire on January 31 of next year, said that will require the Fed to further boost interest rates. After Greenspan speech, several companies that are related to economic growth posted gains.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

Although the U.S stock market posted losses yesterday, today the indexes did not finish in red. The Dow rose 71.57 points, to close at 10,646.56. Besides, the Nasdaq increased 28.31 points, to close at 2,173.18. Meanwhile, the S&P closed at 1,229.35, after rising 8.22 points.

Intel announced today that its net income rose to $2.04 billion, or 33 cents per share, from $1.76 billion, or 27 cents, a year ago. Sales also rose 15 percent, to close at $9.2 billion. Intel, whose microprocessors power over 80 percent of the world’s PC’s is making profits due to an increased demand for laptops that can link to the Internet with a wireless connection. However, Intel’s gross margin was still down 56.4 percent of sales, which shows a decrease from 59.4 percent from last year and slightly below the company’s forecast of 57 percent of gross margin. After the news, Intel shares fell $1.12, or nearly 4 percent, to $27.59 in late trading. However, it closed today at a 52-week high of $28.71.

Yahoo! Inc. also reported its second-quarter profit today. The company’s net income rose to $754.7 million, or 51 cents per share, from $112.5 million, or 8 cents last year. However, revenue was below analysts’ expectations. Although Yahoo forecasted its revenue of $895 million for the second quarter, it actually reported revenue of $875.1 million today. These results caused shares of Yahoo and Google Inc. to fall due to a misleading belief among investors that the growing market for Internet advertising may be slowing down.

Johnson & Johnson increased 42 cents to close at $65.02. The company announced that its second-quarter profit excluding some items was 93 cents per share, which was above expectations. Also, Caterpillar Inc. which is the world’s largest maker of earthmoving equipment increased $2.58, or 5.1 percent, to finish session at $53.40 for the biggest gain in the Dow. It appears that optimism about stocks have risen due to investors’ expectations for economic and profit growth in the following months.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

Today, it was not a good day for the market, mainly due to a decrease in the price of oil. Oil for August for delivery ended down 77 cents to finish the session at $57.32 a barrel, which shows its lowest level in over two weeks. The Dow fell 65.84 points, to close at 10,574.99. Besides, the Nasdaq fell 11.91 points, to close at 2,144.87. Meanwhile, the S&P closed at 1,221.13, after falling 6.79 points.

Also, the main responsible for a decrease in the S&P was Citigroup Inc., which is the world’s largest financial services company. The bank fell $1.42, or 3.1 percent, to close at $45. And, the bank announced second quarter-profit of 97 cents per share, which was less than expectations. Bank of America also slipped 90 cents to close at $45.08.

Among Dow components, General Motors Corp.(GM) rose 0.6 percent, when the company named Stephen Girsky, who is a well-know auto industry analyst as special adviser to its top executives. Prior to joining GM’s team, Girsky worked at Morgan Stanley, where he was a managing director and senior analyst taking care of the firm’s auto global automotive and auto-parts research team. Besides, Girsky’s previous experience at GM was as an analyst in the company’s Treasurer’s Office.

International Business Machines Corp. (IBM), announced that its second-quarter profits increased to $1.85 billion, or $1.14 per share, from $1.74 billion, or $1.01 from last year. Although sales fell 3.6 percent to $22.3 billion, the results still exceeded analysts’ expectations. After the good news, shares of IBM gained $2.79, or 3.4 percent, to finish the session at $84.60, but they had fell 57 cents to $81.81 when the U.S stock market closed today. Intel Corp., and Yahoo! Inc., will report earnings tomorrow, while Microsoft Corp., and Google Inc., will report on July 21st.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

U.S. stocks ended session high making a third week of gains. An increase number of earnings reports helped to place the Nasdaq to a new high for 2005 and the S&P to its best level in 4 years. The Dow rose 11.94 points, to close at 10,640.83. Besides, the Nasdaq rose 3.96 points, to close at 2,156.78. Meanwhile, the S&P closed at 1,227.92, after rising 1.42 points.

Among Dow components, General Electric traded down 0.3 percent after the company issued a third quarter outlook that did not meet analysts’ expectations. On the other hand, shares of McDonald have rallied 4.7 percent due to a second quarter outlook. And, Hewlett-Packard climbed 1.3 percent amid media reports that the company is about to announce layoffs of employees as part of a major restructuring plan.

There were positive economic data to investors from the Department of Labor. The core rate of inflation at the wholesale level fell 0.1 percent, which is above economists’ expectations. Besides, there was more good news in the manufacturing sector. According to the New York Federal Reserve Bank, factory activity in the New York area continued to rebound in July. Also, U.S industrial production rose 0.9 percent in June, which shows the highest monthly increase since February 2004.

Finally, crude for August delivery closed at $58.09 a barrel on the New York Mercantile Exchange, showing a rise of 29 cents for the session. However, crude is still down $1.54 from last week’s close of $59.63. Also, August natural gas climbed 0.5 cents, making prices increase 37.7 cents from last week’s ending level and briefly touched an eight-month high earlier this week.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

by Apple Computer Inc. Also, government reports of an increase of 1.7 percent last month in retail sales eased investors’ concerns about inflation. The Dow increased 71.50 points, to close at 10,628.89. Besides, the Nasdaq rose 8.71 points, to close at 2,152.82. Meanwhile, the S&P closed at 1,226.50, after rising 3.21 points, which shows its highest close since July 2001.

The president of Citigroup Inc., Robert Willumstad, is leaving the biggest U.S. bank to run another company. After leaving, Charles Prince will become Chief Executive Officer of Citigroup. Willumstad became president in 2002 and chief operating officer of the 300,000 employee-company in the year 2003. The bank’s share rose 76 cents, to close at $46.50 on the New York Stock Exchange today, although Willumstad’s resignation was announced after the market closed at 4 p.m.

Among Dow components, General Motors Corp. (GM) rose 3.2 percent, to close at $36.98, after Lehman analyst Darren Kimball raised his rating on the company to equal weight from underweight. Lehman also increased its full-year U.S. light-vehicle sales estimate to 16.8 million units from 16.7 million. Darren Kimball also lifted his price targets, and reiterated overweight ratings on TRW Automotive, as well as BorgWarner. After news, shares of both companies posted gains of about 1 percent today.

Apple Computer Inc. rallied $2.40, or 6.3 percent, to close at $40.75. The company’s fiscal third-quarter earnings of 38 cents per share exceeded Apple’s own forecast and analysts’ expectations. Also in the technology sector, shares of Advanced Micro Devices Inc. advanced 63 cents, to close at $19.88. Finally, Google Inc. rallied $2.03 to close at $300.89. According to analysts at Lehman Brothers Holdings Inc., the Internet search-engine is expected to increase in profits over the next two years. Lehman analyst Douglas Anmuth lifted his share-price forecast to $350 from $275.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

The Dow rose 43.50 points, to close at 10,557.39. Besides, the Nasdaq closed at 2,144.11, after rising slightly 0.96 points. Meanwhile, the S&P rose 1.08 points, to close at 1,223.29. Crude closed down 62 cents, to close at $60. Also, the dollar ended higher after news showed that U.S. trade deficit in May dropped to $55.3 billion. The dollar was trading up 1 at 111.90 yen, as the euro fell 0.016 percent, to close at $1.2084.

Among companies that reported higher profits today, Apple Computer Inc announced net income of $320 million, or 37 cents per share, for the period ended June 25. Apple’s fivefold increase in gains was due to sales of its Ipod digital music players. Now, the company’s Chief Financial Officer Peter Oppenheimer said that Apple expects to post a fourth quarter profit of 32 cents per share on $3.5 billion in revenue. On the other hand, Advanced Micro Devices (AMD) announced second-quarter net income of $11 million, or 3 cents per share. This result did not match last year’s profits of $32 million, or 9 cents per share. Shares of AMD closed at $19.25, after falling 12 cents.

International Business Machines (IBM), the world’s largest maker of server computers, added $1.41 to close at $81.45. According to some analysts, the stock may rise to $95 within a year as sales of IBM rise. But, the company has slumped 17 percent this year, which demonstrates the biggest loss among Dow components. IBM’s rating changed from “outperform” to “market perform”.

The worst performer in the S&P was HCA Inc., which is the largest U.S. hospital chain. HCA’s second quarter profit did not meet analysts’ expectations since the number or uninsured patients receiving treatment climbed. Other hospital chains also fell. Health Management Associates Inc. slumped $1.48 to close at $24.84. And, Universal Health Services Inc. slipped $2.25, to close at $57.40.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

U.S stocks ended mixed today, mainly due to a high in energy prices. The Dow fell 5.83 points, to close at 10,513.89. Besides, the Nasdaq rose 7.72 points, to close at 2,143.15, meanwhile, the S&P closed at 1,222.21, after rising 2.77 points. The market index ended close of its four-year high of 1,225 in March.

Among Dow components, Home Depot Inc rose 2.5 percent, to close at $41.30, after broker Jefferies & Co. upgraded the home-improvement retailer, saying it will continue to benefit from the surge in home values. Besides, shares of Walt Disney Co. rose 0.9 percent, after the Wall Street Journal reported that the media giant is looking to spin off its radio-station network group. Last, Intel posted gains, by increasing 0.9 percent due to strength in the technology sector.

Crude futures rose sharply as traders reeled from the magnitude of Golf of Mexico shutdowns caused by Hurricane Dennis, although the path of the storm largely spared the region’s offshore rigs. Also, crude for August delivery ended up $1.70, or 2.9 percent, to close at $60.62 a barrel in New York trading. August natural gas climbed to $8.14 per million British thermal units on the New York Mercantile Exchange, which is the highest level since November 2004.

Pepsi Co., the world’s second soft-drink maker, added 75 cents, to close at $54.60. Its second-quarter earnings rose to 70 cents per share, which exceeded analysts’ expectations of 67 cents per share. And, Genentech, the world’s second biggest biotechnology company, gained $2.39 to close at $85.89. The company announced that 2005 earnings per share will rise more than 35 percent, which indicates solid profits for this year.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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