Day 4

07 Apr, 2005
New York City

At the end of the today, stock market overpowered oil.

At the end of the today, stock market overpowered oil.

Market finally managed to pay attention to where it matters the most, the earnings. The steady stream of positive outlooks from the retail and tech companies kept the market momentum to over power the daily worry of the oil prices. Signs of labor market improvements also helped to assuage the labor market concerns.

The day began with worries of oil price increases in Europe and economic outlook in the US. The retail sales from most companies bolstered the trader's momentum. American Eagle, Bebe Stores, Chico's, and Target managed to show healthy same store sales.

Disappointing sales from Wal-Mart did not help trading in the early hours, but market managed to focus on Dell's positive outlook on the business. Dell also confirmed the first quarter guidance.

Labor department reported 19,000 fewer people applied for the unemployment last week, helping the traders who were worried that wage inflation or labor tightness may spook the market.

Then there is Wal-Mart. Traders did not like what they heard today. It lowered the earnings forecast for the quarter and the guidance for the sales growth in April.

Discount retailer Target was up 79 cents after reporting sales growth of 8.2 percent for March. Bed Bath & Beyond jumped 10% on earnings spike of 25 percent. The company raised the 2005 earnings guidance to $1.87 from $1.65.

Sharp decline in Oil price did help the market to close higher. Dow up 0.58%, Nasdaq up 0.98% and S&P up 0.60%

In the coming months Energy Information Administration forecasts the
gasoline price at the pump to go higher from the last week average of $2.22 to $2.35 in May. The agency that keeps the statistical records, maintains that drivers are not likely to stay home despite higher oil price and projects 9.3 million barrels per day consumption, 1.8% higher. Gasoline at pump has been inching higher because of higher crude prices, limited refining capacity and the perception of tighter supply situation.

Casino stocks were trading higher today. WTO ruling and earnings surprise from Harrah's helped the surge. Harrah's forecasted 95 to 99 cents first quarter earnings on the strength of business in Las Vegas South and Midwest. Sales at casinos open at least a year rose 6% and the net revenue was up 20 to 25%. The Horseshoe Gaming also helped the
sales momentum. WTO ruled that US must treat the online casinos and casinos with similar set of rules, and the current practice is in violation of the international rules.

In Other News:

Moody's lowered NY Times debt
Mexico index jumps 2% on the peaceful political rally
Brazil Real firms up against dollar
Limited Brands reported March same store sales declined 7%
Abercrombie & Fitch and American Eagle March same store jumps 21% and 29%
Gap March same store decline 1%
Accenture 2Q profit jumps 70%
KB Home declare 2 for 1 split
Ichan increases stake in Blockbuster
Ebay shares continues its recent slide