PortfolioCrafter - Market Commentary 9/26/05
Monday, September 26th, 2005
Today, the Dow Jones industrial average closed up 24.04 or 0.2% to 10,443.63, the Nasdaq composite ended up 4.62 or 0.2% to 2,121.46, and the Standard & Poor’s 500 was up 0.34 to 1,215.63.
The market breadth was positive. On the New York Stock Exchange, where rising shares exceeded decliners by 18 to 14 on volume of 1.55 billion shares. On the Nasdaq, gainers exceeded losers by 17 to 12 on volume of 1.53 billion shares.
Over the weekend, the aerospace giant Boeing agreed on a new contract with striking machinists. This led the stock to close up $1.47 or 2.3% at $64.67. This agreement with its biggest labor union would end a strike that had left its airplane factories idle for nearly a month.
Prominent amongst other gainers was McDonald’s that ended up $0.62 to $33.26, Pfizer that closed up $0.32 to $25.19, and Hewlett-Packard that ended up $0.47 to $28.94. All these sto^cks rebounded after sliding in the previous week. Exxon Mobil gained $0.77 to $64.60, and the Philadelphia Oil Service index added 2.5%.
Advanced Micro Devices gained $0.65 or 2.8% to $23.63, on introduction of a faster version of its high-end chips for server systems and computer workstations. A report in the financial weekly Barron has stated that the chipmaker’s sto^ck could be pushing $50 in two years. Ciena rose $0.18 or almost 8% to $2.43 and helped to lift the Amex Networking Index up 3.52 to 233.22.
Amongst losers, shares of retailer Walgreen dropped almost 2.4% to end at $41.50 after news that the company’s quarterly earnings totaled $324.4 million. Delphi dropped more than 13% or $0.47 to close at $2.99 after Deutsche Bank analyst Rod Lache said he was no longer convinced that the company would work out a deal with General Motors Corp, and with the United Auto Workers, to keep it out of bankruptcy.
Punk Ziegel & Co was upgraded to ‘Buy’ and thus gained 7 cents at $104.15; Goldman Sachs ended up 53 cents at $120; and Lehman Brothers closed up 87 cents at $114.92. However, Caterpillar dropped almost $1 to $58.34 after it was downgraded to a hold rating from Citigroup.
U.S. light crude oil for November delivery added $1.63 or almost 3% to settle at $65.82 a barrel on the New York Mercantile Exchange. Earlier in the volatile session, the contract touched a seven-week low of $62.90.
All the best,
Manuel Jesus-Backus
The Portfolio Crafter