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Good Evening, Investor: |
Friday, November 20, 2009 |
Weakness in technology stocks led the major indexes lower for the third session: The Dow fell 14 points, the Nasdaq lost 10 points, and the S&P 500 declined by 3 points. The semiconductor group was the big loser of the day with a drop of 3%. Twenty one of the Dow's 30 components lost ground. Volume was very light and declining issues outnumbered advancers by almost three to two. The prices of Treasuries weakened and gold futures gained 0.5% to $1,148.50 an ounce. The price of oil on the New York Mercantile Exchange fell almost 1% to $76.72 a barrel. For the week, the major indexes closed pretty close to where they began, with the Dow up by 0.4%, the Nasdaq lower by 0.1% and the S&P 500 lower by 1%.
In Earnings News
- J.M. Smucker reported earnings rose from 94 cents a share a year ago to $1.18 a share in the latest quarter, thanks in part to the company's acquisition last year of Folgers Coffee and to increased sales of jams and peanut butter. The company also increased its earnings guidance for the year, as the latest results beat Wall Street's expectations by about 18 cents a share. The price of the stock (SJM) gained 5% in today's session.
- D.R. Horton reported earnings improved from a loss of $2.53 a share one year ago to a loss of 73 cents a share in the latest quarter. Revenue at the big homebuilder fell 42%, but that was partly offset by fewer write-downs. Still, the company's results fell far short of Wall Street's expectations and the company's shares (DHI) lost 15%.
- Gap announced earnings improved from 35 cents a share a year ago to 44 cents a share in the latest quarter, thanks in part to strong sales at its low-cost Old Navy stores. After falling for two years, sales at Old Navy stores open for at least one year grew 10%. The price of Gap shares (GPS) gained 0.4%.
- Ann Taylor Stores reported earnings improved from a loss of 24 cents a share a year ago to positive earnings of 3 cents a share in the latest quarter. But the retailer cautioned that the holiday season could be weak and the company's shares (ANN) fell 1%.
In Other Business News
- Procter & Gamble's Chief Financial Officer said acquisitions are not an important part of the consumer product giant's growth plan, noting that there has been a lot of speculation recently about its acquisition and divestiture program. He also said the company plans to continue buying back its shares at a "meaningful" rate. The stock (PG) lost 0.5%.
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I like my brain. Without it I wouldn't be able to work or enjoy life, not to mention take care of my investments and smoke an occasional cigar. So it was with great concern that I learned recently that the human brain is shrinking. Yes, scientists who study human evolution have reached that conclusion. According to John Hawks, who is a paleoanthropologist at the University of Wisconsin: "We do know from archeological data that pretty much everywhere we can measure Europe, China, South Africa, Australia that brains have shrunk about 150 cubic centimeters…. roughly 10%."
Yikes, 10%? Unless it comes from the part of the brain I use to mow the lawn, I'd like to get that 10% back. Of course, I can't get back what I never had it in the first place: After all, the loss occurred over thousands and thousands of years. But the news has me thinking how I can hold on to what I've got. Is there anything we can do to boost, or at least to sustain, our brainpower? Here are some ideas from recent news reports:
1. Surf the Web. Researchers at the Semel Institute of Neuroscience of the University of California, Los Angeles report that browsing the Web improves brain function within days. "When you're searching online," says one scientist, "you're making a lot of decisions." That certainly separates the Web from my generation's guilty pleasure television. (And it may explain why my kids seem so much smarter than me).
2. Go to the dentist. Taking good care of teeth, including frequent brushing and going to the dentist, may help to preserve mental acuity, according to doctors at the Columbia College of Physicians and Surgeons. Apparently, a pathogen called "Porphyromonas gingivalis," which is related to gum disease, is also suspected of causing inflammation in the body, which in turn is related to diminished mental capacity. So let me get this straight: Brush my teeth, clear my mind? (Okay, okay, I'll try. Besides, brains in my teeth would go a long way to explain some of my bad habits.)
3. Get into a good funk. According to Australian researchers at the University of South Wales, bad moods can boost memory. Cool. Nothing puts me in a bad mood faster than a trip to the dentist, so my semiannual trips for teeth-cleaning get me two for the price of one brain wise.
Have a great weekend. On Saturday I'm going to shop the Web for Christmas presents, make an appointment with my dentist, and mope. And if you're wondering what to expect in the muni-bond space going forward, watch Lyle Fitterer, who is my guest on a special video edition of "On the Trading Desk."

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DJIASM 10,318.16, -14.28 or -0.14%
Nasdaq 2,146.04, -10.78 or -0.50%
S&P 500 1,091.38, -3.52 or -0.32%
S&P MidCap 400 687.54, -3.85 or -0.56%
Russell 2000 584.68, -1.00 or -0.17%
10-Yr Treasury Notes 3.356%, +0.007
Crude Oil 76.72, -0.74 or -0.96%
Gold 1,148.50, +6.60 or +0.58%
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