Optionetics Closing Closing Wrap Mar. 23
Stocks trade mixed Friday, but close the week with solid gains. The Dow (^DJI) added 19.87 points to close at 12,481.01. The S&P 500 (^SPX) gained 1.57 points to 1,436.11. The Nasdaq (^IXIC) lost 2ред81 points to 2,448.93. Volume was light on the session with the NYSE trading 1.40 billion shares and the Naz turning over 1.67 billion. Market breadth was positive by an 18-to-14 and 16-to-14 margin on the Big Board and Naz respectively.
Economic news was a positive Friday with existing home sales rising 3.9 percent. This was much better than the decline economists were expecting and is the third straight month of gains. Existing home sales continue to benefit from low mortgage rates. However, with the subprime market seeing problems, future sales could be hurt by a shortage of lending options. At the same time, NY Fed President Geithner stated that he does not see evidence of the subprime problem spilling over to the broader credit market.
Shares of Amgen (AMGN) dropped 4.1 percent after the drug maker discontinued a clinical trial for its drug Vectibix. The company was hoping to get the drug approved for a chemotherapy program for colorectal cancer. Shares of ImClone (IMCL) gained 13.6 percent because the company makes Erbitux, a competing drug.
Shares of General Motors (GM) rose 5.5 percent on rumors that other companies were interested in bidding for DaimlerChrysler's (DCX) Chrysler division. It seems GM shareholders do not like the idea of buying Chrysler. Shares of DCX also gained ground, up 6.1 percent.
Shares of Nike (NKE) gained 0.4 percent on news profits rose almost 8 percent in the most recent quarter. The company stated that strength in Europe and Asia led to the these gains, but the shoe maker also stated that margins will be flat to lower in the current quarter throughout the year.
Oil prices rose for the second straight session on news 15 members of the British Navy were being held by Iranian forces. This pushed crude higher by 59-cents to $62.28 a barrel. For the week, oil prices were up 4.5 percent. The feeling is that economic growth might not decline as much as initially expected and this could lead to stronger energy demand.
Overall, the bulls have to be pleased with the strength seen this past week. Now focus will turn to a number key economic reports next week and to upcoming earnings announcements in the weeks to come.
Jody Osborne
Economic news was a positive Friday with existing home sales rising 3.9 percent. This was much better than the decline economists were expecting and is the third straight month of gains. Existing home sales continue to benefit from low mortgage rates. However, with the subprime market seeing problems, future sales could be hurt by a shortage of lending options. At the same time, NY Fed President Geithner stated that he does not see evidence of the subprime problem spilling over to the broader credit market.
Shares of Amgen (AMGN) dropped 4.1 percent after the drug maker discontinued a clinical trial for its drug Vectibix. The company was hoping to get the drug approved for a chemotherapy program for colorectal cancer. Shares of ImClone (IMCL) gained 13.6 percent because the company makes Erbitux, a competing drug.
Shares of General Motors (GM) rose 5.5 percent on rumors that other companies were interested in bidding for DaimlerChrysler's (DCX) Chrysler division. It seems GM shareholders do not like the idea of buying Chrysler. Shares of DCX also gained ground, up 6.1 percent.
Shares of Nike (NKE) gained 0.4 percent on news profits rose almost 8 percent in the most recent quarter. The company stated that strength in Europe and Asia led to the these gains, but the shoe maker also stated that margins will be flat to lower in the current quarter throughout the year.
Oil prices rose for the second straight session on news 15 members of the British Navy were being held by Iranian forces. This pushed crude higher by 59-cents to $62.28 a barrel. For the week, oil prices were up 4.5 percent. The feeling is that economic growth might not decline as much as initially expected and this could lead to stronger energy demand.
Overall, the bulls have to be pleased with the strength seen this past week. Now focus will turn to a number key economic reports next week and to upcoming earnings announcements in the weeks to come.
Jody Osborne
posted by Stock Administrator @ 7:35 PM
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