PortfolioCrafter - Market Commentary 6/29/06
June 30th, 2007 / 7:50 pm / by portfoliocrafter
Stocks finished lower on the day and for the month of June, but still posted a strong performance for the second quarter.
Today, the 30-share Dow industrials closed down 13.66 or 0.10% to 13,408.62, the broader S&P 500 closed down 2.36 or 0.16% to 1503.35, and the tech-heavy Nasdaq closed down 5.14 or 0.20% to 2603.23. For the week, the Dow added about 0.4%, the S&P inched higher, and the Nasdaq rose roughly 0.5%. For the month of June, the Dow fell 1.6%, the S&P 500 fell 1.8%, while the Nasdaq fell fractionally. Fir the second quarter saw the Dow rally 8.5%, the S&P advanced 5.8% and the Nasdaq gained 7.5%.
Market breadth was mixed. On the New York Stock Exchange, winners edged out losers by 17 to 15on volume of 1.66 billion shares. On the Nasdaq, decliners edged out advancers by 16 to 13as 2.21 billion shares changed hands.
Rising oil prices and continued inflation fears eroded the gains. The upcoming holiday week and thin trading, added fuel to fire. In the earlier part of the day, stocks rallied on a combination of tame inflation numbers and moderate - but not too fast - economic growth. Consumer spending showed the inflation reading rose just 0.1% in May, meeting forecasts of economists. The PCE rose 1.9%, just within the Fed’s comfort range of 1 to 2%.
Stock of Research in Motion closed up 16.9% to $193.53, after reporting a higher first-quarter profit that topped forecast as it added more subscribers than expected and raised its earnings guidance. It also announced a three-for-one stock split, which it plans to implement through a stock dividend. It earned $223.2 million, up from a profit of $128.8 million in the same period a year earlier.
Shares of Palm fell over 3% after it posted lower quarterly profit, even as it reported record sales of its Treo smart phones. Its profit fell to $15.4 million, from $27.2 million in the year-ago quarter. Revenue fell to $401.3 million from $403.1 million. Analysts had expected revenue of $406.58 million.
Oil prices rose Friday amid a backdrop of falling U.S. gasoline and heating fuel stocks. U.S. crude for August delivery gained $1.11 to settle at $70.68 a barrel on the New York Mercantile Exchange.
All the best,
Manuel Jesus-Backus
The Portfolio Crafter
