Market Commentary: November 21, 2005

Strategic Insights -

In the November 21 edition of Schaeffer's S&P 500 Index Hot Stocks, General Motors, Ford Motor, Lockheed Martin, Computer Sciences, and Hewlett-Packard are featured stocks. The report provides a daily list of the top-20 and bottom-20 performing stocks in the S&P 500 Index, along with news that is moving some of the securities. The S&P 500 Index is performing admirably, trading at a four-and-a-half-year high after breaking through potentially staunch resistance at the 1,250 level.

Key Takeaways:

  • General Motors (NYSE:GM) is cutting about 30,000 jobs in the next three years, with the stock initially jumping on the news but later declining after Standard & Poor's Ratings Services put GM on "creditwatch."
  • Ford Motor (NYSE:F) announced it will cut 4,000 salaried jobs, tanking more than 2.5 percent on the news.
  • Computer Sciences (NYSE:CSC) fell more than 12 percent after Lockheed Martin and private-equity firms broke off their attempt to buy the firm, which rallied to a new multi-year high of 59.90 on news of the potential buyout.
  • Hewlett-Packard (NYSE:HPQ) announced upbeat results, giving confidence to the technology sector, with shares up nearly five percent on the day.
  • Campbell Soup (CPB) reported first-quarter net earnings of $302 million, up from $230 million, with sales reaching $2.11 billion from $2.09 billion.
  • Autodesk (ADSK) predicted that fiscal 2007 revenue would rise 10 to 12 percent compared to its expectations for 2006 revenue of $1.51 billion to $1.52 billion.

Statistics:

  • The S&P 500 Index is trading at a four-and-half-year high.
  • Autodesk (ADSK) expected fiscal 2007 revenue to rise 10 to 12 percent.
  • Campbell Soup (CPB) reported a 31% increase in net earnings.
  • Ford Motor (NYSE:F) will cut 4,000 salaried jobs.
  • General Motors (NYSE:GM) will cut about 30,000 jobs in the next three years.
  • Computer Sciences (NYSE:CSC) fell more than 12 percent after the broken buyout attempt.

Sources:

  • Schaeffer's S&P 500 Index Hot Stocks (Nov 21, 2005)
  • The Wall Street Journal
  • Forbes
  • Barron's
  • Lehman Brothers (Lehman Brothers upgraded Ameriprise Financial to "overweight")
  • Schaeffer's Investment Research (www.SchaeffersResearch.com)