Profit taking drives averages lower

08 Apr, 2005
New York City

May crude oil futures closed down to $53.32 down 79 cents for the day after reaching peak of $58.28 on Monday this week. Trades perception of better gasoline inventory levels and higher supply pledge appears to have pushed the crude prices down for now.

May crude oil futures closed down to $53.32 down 79 cents for the day after reaching peak of $58.28 on Monday this week. Trades perception of better gasoline inventory levels and higher supply pledge appears to have pushed the crude prices down for now.

Tech stock hit turbulence in the early afternoon trading. Microsoft, IBM, HP, and Cisco all stocks trading lower and registering losses. Apple Computer reports earnings next week. Analysts average estimates for the current quarter is 24 cents.


According the weekly report by Baker Hughes, the number of rigs drilling for oil and gas in North America fell by 24 to 1,535. The number of gas rigs was unchanged at 1,157. The number of U.S. offshore rigs rose by one to 95. The number of domestically drilling rigs for oil decreased by one to 170, and increased from last year 148. There were 1,203 rigs searching for oil on land, 95 offshore and 29 inland.


Time Warner and its partner Comcast have reached a deal to buy bankrupt cable operator Adelphia Communications corp. for nearly $18 billion. Time Warner is contributing majority of the assets in the deal and Comcast is contributing $2 billion. Adelphia is undergoing debt restructuring through bankruptcy court and simultaneously carrying out the asset sale. Now the bid will travel through the court and creditors committee. The last minute cash offer of $16.5 billion by Cablevision fell short to ignite the interest. Adelphia has 5.3 million subscribers.


Overall the major averages were on decline all day. Investors chose to take profits rather than commit more funds for the day. Railroad, Steel, internet, Automobile and Retail sectors suffered between 0.5% and 3.5% losses. The gainers were hard to find. On NYSE decliners outnumbered the gainers by 9 to 4.

Also in the News:

ShopKo Stores agreed to be acquired by private firm for $715 million and $330 million in debt
LaBranche forecast lower 1Q earnings
Indian IT companies set to report 30% earnings growth
Bear Stearns report quarterly dividend of 25 cents
Accenture reports 70% jump in earnings, but had lower operating margins, stock sells off
Crude oil closes below $53
Mexico stocks remain on the edge on the political turmoil

Nasdaq -0.85%, S&P - 0.73% and Dow -0.74%