Techs Weigh on Major Averages; Airlines Soar [delayed]
Monday Jul 10 2006 13:59:25 EDT
Ridgeland, MS, JUL 10, 2006 (EventX/Knobias.com via COMTEX) --
The major averages have trended lower through the bulk of midday trading. A sharp technology decline has the Nasdaq (-10) in red numbers. This morning Merrill Lynch turned increasingly defensive, downgrading technology (-2.6%) and upgrading consumer staples (+0.8%). Merrill sees a 2% sequential decline in Q2 semiconductor revenue, a reversal of the typical +3% Q/Q gain. Shares of PC makers (DELL, HPQ) and component suppliers (AMD, INTC, MU, STX) are taking it hard. Industrials are also lower with construction (SGR) lagging. Food producers are benefiting from M&A actions (CPB, KFT) and upgrades (PPC, TSN). CHTT & REV shares are higher despite lackluster earnings or guidance. Falling oil futures & strong earnings expectations are lifting the airlines (ALK, CAL, LUV, LCC, XJT). Oil: (-94c)
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