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![TMCNet: FirstAlert[tm] 7/22: Bear Beats Rally](http://www.tmcnet.com/usubmit/images/tmc-pr.gif)
FirstAlert[tm] 7/22: Bear Beats Rally
(InvesTrend Via Acquire Media NewsEdge)
July 22, 2008 (FinancialWire) (By Philip Holmes) Good news on a big
drug marriage and some better-then-expected earnings reports were
eventually trumped by surging oil prices later in the day. Investors
spirits were lifted by new signs of life in M&A land when Swiss
drugmaker Roche Holdings AG made a play for the remaining 49.1% of U.S.
biotech partner Genentech that it doesn t already hold. The company
made a $43.7 billion, or $89 per share, cash offer. The struggling
financial sector got a bit of a lift from Bank of America when the
retail banking giant reported second-quarter earnings of 72 cents a
share, beating analysts expectations by nearly 20 cents a share.
However, the report left out results for B of A s recently-acquired
Countrywide Financial holding. Financial stocks also got a lift from a
Securities and Exchange Commission emergency rule designed to protect
19 of them from short selling. That measure went into effect on Monday.
But the sector still faces a difficult trial, as BusinessWeek reports.
The recent bounce in financial stocks aside, the 87% drop in the S&P
500 Thrifts and Mortgage Finance Industry Index from peak to trough so
far exceeds the peak-to-trough decline in the Nasdaq after the tech
bubble burs. The paper cited a weekly report by Jeffrey Kleintop, the
chief market strategist at LPL Financial Research, who said it would
take the financial sector many years to return financial sector
profits to the levels of a year ago. Another factor depressing stocks
on Monday was oil, which again rose above $130 per barrel. Fears that
Tropical Storm Dolly could turn into a raging hurricane fueled the
rally in oil prices, which in turn dampened any hopes of a sustained
rally in stocks. The Investrend Earnings Calendar features Boston
Properties (NYSE: BXP), expected at $1.17; Broadcom (NASDAQ: BRCM),
expected at $0.36; DuPont (NYSE: DD), expected at $1.07; Edwards
Lifesciences (NYSE: EW), expected at $0.64.
The Investrend Economics Calendar lists Weekly Chain Store Sales (8:55
a.m.)
The Investrend Events Calendar showcases BBNK at AlwaysOn/STVP Stanford
Summit Conference; NI, PNY at American Gas Association Annual Legal
Forum.
The Investrend Money Index is an indicator of the depth of market
direction or indirection. While not always including the same stocks,
the NYSE/NASDAQ 50 Most Actives indicate the direction in which the
mass of money is flowing. Last session's trading showed 23 advancers
versus 26 decliners and one unchanged. Advancers were led by Genentech
Inc (NYSE: DNA) up 14.74%, Sirius Satellite R (NASDAQ: SIRI) up 6.14%.
Decliners followed Arthrocare Cp (NASDAQ: ARTC) down 42.02%, Schering
Plough Cp (NYSE: SGP) down 11.61%, Washington Mutual (NYSE: WM) down
7.43%, Merck Co Inc (NYSE: MRK) down 6.24%.
Vote in the Investrend Poll Question of the Day at Investrend
Information (http://www.investrendinformation.com).
Investrend Website of the Day:
http://www.surfline.com/surf-report/black-point-diamond-head-hawaii_4760
/
Quote of the Day: "Sir, you have tasted two whole worms; you have
hissed all my mystery lectures and been caught fighting a liar in the
quad, you will leave Oxford by the next town drain." Rev. William A.
Spooner
Today is: Ratcatcher's Day, Pi Approximation Day.
Happy Birthday: Alessandro de' Medici, Georg Wilhelm Richmann, William
Archibald Spooner, Edward Hopper, Rose Fitzgerald Kennedy, Amy
Vanderbilt, Bob Dole, Orson Bean, Oscar De la Renta, Alex Trebek,
George Clinton, Bobby Sherman, Sparky Lyle, Danny Glover, Albert
Brooks, Don Henley, Sylvia Chang, Willem Dafoe, John Leguizamo, David
Spade, Rufus Wainwright.
Today in History: A second group of English settlers arrived in 1587 on
Roanoke Island off of North Carolina to re-establish the deserted
colony. Alexander Mackenzie reached the Pacific Ocean in 1793 becoming
the first Euro-American to complete a transcontinental crossing north
of Mexico. Wiley Post became the first person to fly solo around the
world traveling 15,596 miles in 7 days, 18 hours and 45 minutes in
1933. Outside Chicago's Biograph Theatre, "Public Enemy No. 1" John
Dillinger was mortally wounded by FBI agents in 1934. The United States
government began compulsory civilian gasoline rationing in 1942 due to
the wartime demands. Near Medell n, Colombian, in 1992, drug lord Pablo
Escobar escaped from his luxury prison fearing extradition to the
United States.
[FirstAlert was created by Gayle Essary, founder of Investrend
Communications, Inc., parent of Investrend Information
(http://www.investrendinformation.com). The opinions expressed in
FirstAlert do not necessarily reflect the opinions of Investrend.]
FinancialWire is a fully independent, proprietary news wire service of
Investrend Information (a division of Investrend Communications, Inc.).
FinancialWire news is written by professional journalists, dedicated
to pure journalistic standards. FinancialWire does not receive or
accept any compensation from any individual or subject company (or
representative thereof) for its news or opinions. All FinancialWire
news is available at http://www.financialwire.net . Please address any
inquiries to feedback@financialwire.net .
Free annual reports for companies mentioned in the news are available
at http://investrend.ar.wilink.com/?level=279 .
(Distributed for Investrend Communications, Inc. via M2 Communications
Ltd (www.m2.com))
Copyright ? 2008 M2 Communications Ltd.
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