Stocks Falter, Oil Rebounds $5

123jump.com Staff
30 Jul, 2008
New York City

U.S. stocks traded higher in the early afternoon as crude oil futures rose and financials kept their gains of the day. Crude oil rose more than $5 a barrel after a weekly inventory report showed a larger than expected decline in inventories. Supplies at the end of the last week declined about 5 million barrels. Connecticut sued three bond rating agencies for assigning lower rating on municipal bonds for comparable corporate debt structures.

[R]2:30 PM New York – U.S. stocks gained for the second day on a rise in financial stocks and a fall in crude oil prices.[/R]

Dow Jones Industrial Average gained 53.98 or 0.6% to 11,451.71 and S&P 500 rose 5.40 or 0.50% to 1,268.50.

Stock Movers

Align Technology Incorporated the maker of Invisalign dental braces reported that 2008 profit will be below 33 cent a share. The counter fell by 18% to $9.20. Align Technology ((ALGN)) in the last one year traded as high as $29.30 in October 2007 and as low as $9.02 in April 2008. Based on the yesterday’s closing price the company has a market cap of $692.89 billion.

Corning Inc fell 4% after its sales forecast for the year came in below consensus estimate of analysts. Corning ((GLW)) in the last one year traded between $27.77 and $19.80. For the second quarter sales rose 19% to $1.69 billion and earnings jumped to $2.01 a share or $3.2 billion from $489 million or 30 cents a share. Excluding special items in the quarter earnings were 49 cents a share. In the third quarter sales are estimated between $1.65 billion and $1.72 billion and earnings excluding special items between 48 cents and 51 cents a share.

Cummins Incorporated rose 8% to $71.25 after the maker of heavy-duty truck engines said second quarter profits rose 37% as demand increased domestically and international demand for generators. Cummins Incorporated ((CMI)) in the last one year traded as high as $75.09 in June 2008 and as low as $38.11 in January 2008. Based on the yesterday’s closing price the company has a market cap of $15.12 billion.

Fannie Mae one of the largest U.S. providers of mortgage lending rose by 4.3% to $12.10 after the President Bush signed into law the latest housing bill to bail out Fannie Mae and Freddie Mac and help troubled lenders.

Fannie Mae ((FNM)) in the last one year traded as high as $70.57 in October 2007 and as low as $6.68 in July 2008. Based on the yesterday’s closing price the company has a market cap of $12.05 billion.

S&P Movers

Of the stocks in S&P 500 index, 151 increased 345 declined and 4 remained unchanged.

CB Richard Ellis led the decliners in the S&P 500 index with a loss of 14.96% or $2.79 to $15.86 followed by losses in Wyeth of 14.43% or $6.51 to $38.60, in Tyco Electronics of 12.54% or $4.46 to $31.11, in Electronic Arts of 9.51% or $4.51 to $42.89 and in Meredith Corporation of 7.53% or $2.09 to $25.70.

Jones Apparel led the gainers in the S&P 500 index with a rise of 17.04% or $2.54 to $17.45 followed by increases in Interpublic Group of 14.59% or $1.16 to $9.11, in Avon Products of 14.48% or $5.44 to $43.01, in Cummins Incorporated of 13.07% or $8.63 to $74.65 and in MBIA Incorporated of 12.40% or $0.61 to $5.53.

Dow Gainers & Losers

Of the 30 stocks in Dow Jones Industrial Average 26 stocks gained and 4 declined.

Johnson and Johnson led the decliners in the Dow Jones Industrial Average with a loss of 0.48% or $0.33 to $68.15 followed by losses in Verizon Communication of 0.38% or $0.13 to $34.00, in Boeing Company of 0.32% or $0.20 to $63.01 and in Exxon Mobil Corporation of 0.16% or $0.13 to $80.77.

America International Group led the gainers in the Dow Jones Industrial Average index with a rise of 5.53% or $1.43 to $27.28 followed by increases in Citigroup of 5.37% or $0.99 to $19.44, in Bank of America of 5.15% or $1.66 to $33.88, in General Motors of 4.71% or $0.56 to $12.46 and in JPMorgan Chase of 2.33% or $0.95 to $41.70.