Monday Market Report

Oil seems to be slipping off the high prices it reached last week. The market’s big change of mind recently is that high oil prices are now seen as hurting the economy, not a reflection of a surging economy. As oil has raced higher, bond yields have fallen. On Friday, the yield on the 10-year T-bond dropped below 4.25%. Although, I’m very skeptical that this rally will last.

We’ve had some good earnings news this morning. Lowe’s earned $1.05 a share, three cents better than estimates. The company also said that third-quarter earnings should come in at or above expectations. Lowe’s is a wonderful company, and I like the stock a lot. However, I’m a bit concerned about a slowdown in the housing sector. It will be interesting to how well Home Depot did last quarter. HD’s earnings come out tomorrow.

Another stock I like a lot is Sysco. I always find it interesting that the other Cisco gets so much more attention. This Sysco is a major supplier to the food service industry. The company earned 44 cents which was inline with estimates. I’m also happy to see that Sysco is going to expense its stock options, something the other Cisco would never do. Still, Sysco is not growing as fast as I would like. Right now, the market only seems to be concerned with oil.

Posted by on August 15th, 2005 at 9:51 am


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