Market briefing --- Bob (fast)
NYSE --- Deb (fast)
Nasdaq --- Julie (slow)
Airlines --- Su (fast)
>> welcome to “world financial report.” let’s get to the numbers. the dow jones industrial average was up 38, almost 39 points. you see it better by .37%. and the s&p up .26% and the nasdaq up .15%. checking volume at the big board, we see 1.5 billion shares traded. over at the nasdaq volume at 1.7 billion shares traded where decliners slightly outpaced advancers as you see by the numbers. the current account deficit widened to a record. it stands at $144.9 billion in the first-quarter. that is more than the $144 billion shortfall that economist expected. this is the broadest measure of u.s. trade. the economists say that the inability of the u.s. to attract enough u.s. money could cause the dollar to drop and interest rates to rise further. there is a selling action in the 10-year note, down 8-/32 and the five-year note down about/32. about 3/32. taking a look at the japanese yen over the weeks we see the dollar down against the yen. it is down 1.0 9%. the dollar fell to a six-week low against the yen. the dollar is down against the yen and the euro. there’s the weekly chart of the euro. the euro right now at $1.21. the u.s. needs to attract international investors to maintain the value of the dollar. we go to the new york stock exchange and get more on today’s action.
>> the narrow trading range persisted once again. that led the dow to be up only slightly this weeks .6%, the s&p and nasdaq down a little bit. not a lot of move that’s we saw this week. investors seem to wait on the direction of interest rates. we will likely get that on june 30. also second-quarter earnings seem to be something that investors are pondering this week. a little bit of disappoint with jabil saying that they would not meet their numbers, but in today’s session, the optimism coming back with solectron, saying that they would beat those numbers. we did see volume, 1.5 billion shares here at the new york stock exchange. so finally getting the average volume. that was tied to the expiration of the options and futures going on many 10% of trading was recorded after 4:00 after much of the market on closed orders. that tied to all of the expiration. it has been light trading going on recently. metal stocks climbing to a two-week high that is gold hitting a two-week high. a lot of concern that energy stocks are still climbing. material stocks leading the s&p 500. look at some of the material stocks. some performing quite well. some steel stocks hitting new highs, new 52-week and multi-year highs in today’s session. that on a lot of demand we’ve been seeing. especially global demand with a lot of the material stocks. back to you in the studio.
>> the nasdaq finally picking up in today’s session as computer-related shares led that index higher. julie hyman has the details from the nasdaq market site in times square.
>> the volumes are a little more healthy but still not beating the average for the year. the average for the year is 1.8 billion. we did end the day higher, but decliners outpaced advancers and we ended the week lower. some of shares that led gains, some of the computer-related shares. although they fell after jabil missed estimates. today they gained after solectron said that they would beat estimates. so those shares related to those benefiting in today’s session. generally a bit of earnings optimism. we talked to thomson financial and found out for the second-quarter, the current quarter, that there are 0.8 companies in the s&p 500 reducing estimates for every company that is raising their estimates there are more companies raising their estimates than reducing them. we talked to joseph cooper, a market analyst. he said that if it stays where it is, we have never seen the ratio this positive. certainly that earnings optimism accounting for a little bit of the gains at least that we saw in today’s session. but not every company beat estimates today. red hat saying that first-quarter sales were up 63%, less than analysts had been looking for. sales in the second quarter also missed estimate. we saw those shares fall in today’s session. a quick last check on calm of i.p.o.’s. one company called black board up 43%. selling 77 million in stock, and another company called radiation therapy services up about 8% in today’s session. black board sells software to the education industry, doing well. sharp contrast from earlier in the week when there were a couple of initial offerings that fell on the first day of trading.
>> the death of the u.s. contractor in saudi arabia raised the possibility that foreign workers will leave the world’s biggest oil exporter. the price of crude rose to a two-week high at $38. delta led the rally in airline stocks. shares of delta airline soared 6% as pilots signaled that they’re ready to resume finance talks. financing is a crucial issue with loans. was rejected. the stablization bourd said that it will not accept the request as is. it is willing to consider a revised version. united had been counting on the government to back a $2 billion loan from jp and―j.p. morgan and citigroup. dorothy robinson said that this forces united airlines to, quote, go back to creditors and get deeper concessions. another expert had this to say, hopefully they have a plan b to get a private lone in his view that would involve a private investor who would get a stake in the airline and probably demand further changes. he said that such a deal could take many months. could take to the end of the year. credit suisse first boston says that u.a.l.’s unrestricted cash level will fall to less than $800 million by the end of the year. he said that an airline of united size should have three times that amount. united’s struggle are coming at a time when americans are flying at greater numbers in contrast to last year.
>> the bookings at the on-line travel sites are staying healthy or appear to stay healthy for the second-quarter, so we’re confident about the industry.
>> so the passengers are there?
>> at least they’re booking.
>> they’re also booking. passage on independence air. it is taking costs, and sells only on-line. cutting cost seems to be the only way to go for the airline industry. jourks next guest manages more than $3 million in large cap stocks. he’ll tell us what stocks he is buying now and it is all coming up next.
