Portfolio up 0.67%, Dow up 0.30%, Nasdaq up 0.58%, S&P500 up 0.52%, Gilder up 0.1%, Meisler up 1.0%, J-Blimps up 1.8%, Fuel cells/Alt energy up 0.2%
NYSE Volume: 729 mln...Adv: 1325...Dec: 1477
Nasdaq Volume: 1.26 bln...Adv: 2031...Dec: 1995
Put/call 0.48 ratio (Range 0.42-0.48)
Sector Watch
Cyclicals (XLY) 25.53 -0.62 -2.37% WMT led index down by losing 3.69%, WMT is 22% of the index and carries the most weight. Sector below 200/50 day EMA stack and heading lower. The discount retail chain operator said in its weekly audio report that sales gains were coming in at the low end of the 4 to 6 percent range the company had expected. WMT HD F GM GPS DH LOW S BNI COST MAY SPLS FDX NSC JCP NKE UNP AMR MAS KSS TJM CSX FD GT KM LUV are the top companies in the index by weight of the 68 companies.
Paper ($FPP) 287.41 -8.33 -2.82% Entire sector red. No news to make it dive this much. Some speculation that the extensive forest fires in the US may drive basic material costs up. Sector still moving sideways between 50 and 200 day EMA. BCC BOW CDP FJ GP IP LPX MEA SSCC TIN W WLL WY are the companies in the index
Semis ($SOX) 1111.53 -23.27 -2.05%. Profitaking after runup. Barely holding above the 50 day EMA.
Portfolio Watch
NVS down 0.16%. ZURICH -- Novartis AG reported stronger-than-expected growth in first-half net income but company officials remained cautious about prospects for the full year, warning of a likely slowdown in drug-division sales during the current quarter. The Swiss pharmaceutical giant said first-half net was up 12% to 4.19 billion Swiss francs ($2.44 billion, 2.69 billion euros) from 3.74 billion francs a year earlier as sales jumped 15% to 18.96 billion francs from 16.49 billion francs. Favorable exchange-rate fluctuations accounted for nine percentage points of the reported sales increase, the company said. At the company's flagship pharmaceutical division, operating profit rose 22% in the first half, to 2.58 billion francs, on a 17% increase in revenue, to 8.48 billion francs. However, underlying sales growth was only 8%. Pressure from generic competition triggered sales declines for the company's two top-selling prescription medicines -- Cyclosporin, a drug used to prevent rejection of organ transplants, and Voltaren, a painkiller.
In an interview, Novartis's Chief Financial Officer Raymund Breu warned that the company still expects only mid-single digit growth in full-year drug-division sales -- slightly off the 8% underlying revenue growth in the first half. "We expect our pharmaceutical sales growth to underperform the market this year," Mr. Breu said, adding, "But sales will pick up with launches of new drugs -- putting us on a par with the market next year and exceeding overall market growth by 2002. What keeps us confident is that so far, we haven't had any big disappointments or major products which have dropped out of development."
MDT up 0.37%. MINNEAPOLIS, Aug. 21 /PRNewswire/ -- With its diversified business mix driving worldwide sales, Medtronic, Inc. (NYSE: MDT), today reported pre-charge, net earnings of $300.4 million for the first fiscal quarter which ended July 28, 2000, compared with $252.4 million in the same period a year ago, a growth of 19 percent. Earnings (diluted and pre-charge) were $0.25 per share, also representing 19 percent growth over the prior year's $0.21 per diluted share. After recording an $11.4 million non-recurring charge, net earnings were reduced to $289.0 million or $0.24 per diluted share.
(PHOTO: newscom.com )
Global revenues reached $1,309.9 million, a growth of 17.4 percent on a constant currency basis, compared with $1,133.2 million in the first quarter a year ago. The negative impact of foreign currency translation of $20 million reduced the reported quarterly revenue growth rate to 15.6 percent.
Quarterly earnings were spurred by the company's strong gross margins of nearly 75 percent and reflect a substantial investment in research and development of $136 million (10.4 percent of revenue). Medtronic cash balances grew by nearly $300 million in the quarter to over $900 million.
"Medtronic's fiscal year is off to a solid start with revenues and earnings results exceeding the company's stated growth objectives," said William W. George, Medtronic chairman and chief executive officer. "We are particularly pleased with the very strong performance in the Vascular and Neurological, Spinal and Ear, Nose and Throat (ENT) businesses, all growing in excess of 20 percent. We are additionally gratified by growth outside the United States to supplement our domestic momentum."
KEM up 4.25%. No news.
C up 2.84%. New52wkHI. No news.
Technical Buying Sends Crude-Oil Prices Higher
By PETER A. MCKAY
Staff Reporter of THE WALL STREET JOURNAL
NEW YORK -- Crude-oil prices jumped amid technical buying, and natural gas hit an all-time high at the New York Mercantile Exchange on hurricane and supply worries. Nearby September crude contracts rose 48 cents to $32.47 a barrel. Analysts said the buying picked up partly in anticipation of the futures' expiration Tuesday, and in part because the market is still anxious to get more crude from the Organization of Petroleum Exporting Countries. But supply worries are perhaps even more acute in the nation's natural-gas market, which has reserves 15% below year-ago levels even though the summer is traditionally a period of low usage. Heading into this week's trading, those fundamentals had already sparked a quick 20% run-up in natural-gas futures since a summer low July 25. Then, facing possible damage to gas rigs by Tropical Storm Debby Monday, September futures leapt another 31.1 cents to $4.747 per million British thermal units. "We're probably headed toward a fairly serious energy crisis," said Derek S. Van Eck, president of the New York investment firm Van Exck Global. "Particularly if there's any sign of a cold winter, the crude or the natural gas could go even higher." Tuesday's crude run-up at first had been even more sharp, with September futures rising more than 90 cents in midafternoon before a late round of selling tempered the rally. Still, the close was crude oil's first above $32 a barrel since July 4.
Comment: A friend said propane heaters might be one alternative to natural gas heat. I’d have to check my fire insurance with my kids. I wish they sold solar power heaters at the local store.
Aug 21 6:06pm ET
WASHINGTON (Reuters) - The Center for Auto Safety (CAS) consumer group said on Monday it has filed a federal lawsuit seeking to force Ford Motor Co. (F.N) and Bridgestone/ Firestone (5108.T) to replace tires potentially linked to 62 traffic deaths.
The group, which filed the suit in the U.S. District Court in Washington D.C., wants the companies to replace all Firestone-brand ATX, ATX II and Wilderness tires regardless of their size and the plant where they were made. ``The center has filed this lawsuit to force the replacement of all ATX, ATX II and Wilderness tires because they represent one of the most lethal defects ever with 62 deaths known already,'' CAS Executive Director Clarence Ditlow said in a statement from the group.
CAS said the number of tires covered in its suit, the first by the group against a corporation since its founding in 1970, is at least twice as large as the 6.5 million tires that Japan's Bridgestone Corp. Firestone unit has already agreed to recall.
Firestone recalled the ATX, ATX II and Wilderness 15-inch tires on Aug. 9 and the U.S. Highway Traffic Safety Administration is investigating 62 traffic deaths linked to failures of the tires, mostly involving Ford Explorer sport utility vehicles.
Responding to news of the suit, Ford spokesman Jason Vines said: ``We're not going to let anything, I repeat, anything distract us from finding solutions for our customers. Period.'' CAS was originally founded by consumer advocate and Green Party presidential candidate Ralph Nader.
Comment: If the steelworkers pull a strike on Firestone it will be the death blow to this company. I’m waiting for the $100 per tire that these two will have to cough up for rebates. Winner in that will be GT and Michelin. Ford said it will stop production of it s Explorer SUV to make tires available. And GT only up 5% since the news. Such a deal.
drkoop.com (KOOP) 1 11/32 +3/32: Reports Q2 loss of $1.18 a share $0.01 worse than the Zacks' consensus of ($1.17). It is in a death spasm. Many clinging for hope of a buyout.
NVIDIA Corp (NVDA) 78 3/16 +1 3/16: Reports Q2 earnings of $0.28 a share, $0.02 better than the First Call consensus of $0.26, vs year-ago earnings of $0.09. Revenues rose 118% to $170 mln; Should get a momentary pop. People wanted better.
NOPT ran up 17% to lead the Gilder portfolio. Yahooligans speculating on buyout rumor. Dangerous.
MNMD up 11.57% to set new high. Split 2 for 1 today. A j-blimp stock.
SATC down 8.73%. fuel cell stock down after seven green days.
Looking at TGT (Target) which set a new52wkLO. Went to buy the kids clothes there yesterday. Zipoffs, hippie pants, cargo pants, parachute pants, scenic print shirts and I had a flashback from the 1970’s. This store was busy for a Sunday night. May have to watch it for a while.
The FOMC is tomorrow. I think Stan S. hit it on the hit. On his site last night. Caution is still indicated early in the week because the "no rate hike scenario" has long been factored in...at least from the serious investor. wallstreetmonitor.com
This stuck in my head last night and he is right.
Stan also drew the triangle on the Nasdaq it really does show a major move coming. geocities.com
A kudo to Stan, he beat Gary B. Smith of the TSCM by 12 hours with this chart. Gary featured the triangle in his column today. Volume very low. I’m very defensive right now. Just want to see the Nasdaq breathe improve, not just the kings and highflyers.
This thread is #6 on the hot list at this moment. More due to SI losing the other posting activity than anything else. Maybe just too many moderated threads. I think there must be 100 messageboards now in cyberspace. Maybe the speculators have really gotten hit in the last July downturn and just faded away.
On a sad note, Spin informed me that Lucre from the Tmex thread recently died. He was honest and good for discussion on momentum stocks like ADSP in March.
Jack |
