Submitted by Trade Trends, Inc. tel. (509) 327-1279
A
Federal Reserve study released at the close of our trading period ended
June 16, 2005 showed solid if unspectacular growth in the nation's
economy, with a few weak spots in some geographical areas and some
business sectors. In most of the 12 geographical areas, the Fed
characterized growth as "moderate, solid or well-sustained," leading
Fed-watchers to expect another quarter-point boost in long-term
interest rates after their meeting at the end of June. This would be
the ninth quarter-point increase since the Fed began raising rates a
year ago.
In addition, consumer prices fell in May, the first drop in 10 months,
and factory output climbed, the nod given to falling oil prices.
Despite the positive trends, some analysts warned against continuing
pressures from oil. "We really have a tight energy market because
demand is pressing up against the capacity to produce," said Nigel
Gault, chief U.S. economist for Global Insight, an economic forecasting
firm. "Where we would really be in trouble is if there is a terrorist
attack or some sort of natural disaster that affected oil production."
The LC-GC Index moved with the national indices into positive terrain,
closing up 3.80 points, or 0.32 percent to end at 1187.90. Of the 23
stocks tracked in our index, advancing issues handily outpaced
declining issues at a 17-to-6 count.
Shares of Teledyne moved forward after the company announced that it will purchase privately held Cougar Components,
for $26.5 million. Teledyne said it expects the Cougar addition will
add to its earnings this year. Cougar makes communications equipment
used in satellites and airplane guidance. The transaction is expected
to close at the end of June. Teledyne increased 3.37 points, or 10.79
percent, and ended at 34.59.
Shares of Applied Biosystems
floundered this session, losing 1.48 points, or 6.62 percent, to end at
20.87. Investment firm UBS cut its rating on the company to "reduce"
from "neutral." In a note to clients, UBS said that although "ABI
remains an important brand name in the life sciences sector," pressures
from its weak growth, greater competition and limited merger and
acquisitions choices should keep it from trading at a premium.
Agilent jumped on the report
that it is looking for a buyer for its semiconductor products unit. The
report in the Wall Street Journal cited anonymous sources, and said
that investment firm Goldman Sachs is assisting with the sale. Agilent
spokesman Mark Alden said that he could not comment on the speculation.
The divestiture would allow Agilent to focus on its test and
measurement division. Agilent gained 3.01 points, or 13.96 percent, and
closed at 24.57. ♦
