Tuesday Market Rap: WMT, AMGN, IR, MMM, & CVX

Posted May 15th 2007 7:00PM by Kevin Kersten
Filed under: Wal-Mart (WMT), 3M Corporation (MMM), Agilent Technologies (A), Applied Materials (AMAT), Chevron Corp (CVX), Amgen Inc (AMGN), Options, Economic Data, Akamai Technologies (AKAM)

Although markets started the day in the green they were not able to hang onto the gains closing mixed. Core CPI numbers came in a 0.2% this morning in line with analysts expectations and easing inflation worries.

The NYSE had volume of 3 billion shares with 1,225 shares advancing while 1,992 declined for a loss of 0.65 points to close at 9,764.73. On the NASDAQ, 2.2 billion shares traded, 888 advanced and 2,136 declined for a loss of 21.15 to 2,525.29.

Stocks moving today included: Agilent Technologies (NYSE: A) rose $1.87 (5%) to $37.78. Akamai Technologies (NASDAQ: AKAM) fell $1.97 (-4%) to $42.30. Amgen (NASDAQ: AMGN) fell $2.06 (-4%) to $54.01 on announcement of limited Medicare coverage on its Aranesp anemia drug. Applied Materials (NASDAQ: AMAT) fell $0.64 (-3%) to $19.78 before earnings. Ingersoll-Rand Company Limited (NYSE: IR) rose $2.68 (6%) to $49.29 on a possible spin-off of Bobcat.

Amgen (NASDAQ: AMGN) saw heavy volume on the January 75 puts (YAAMO) with over 43,000 contracts moving. Not all that surprising considering the drug announcement. Being options expiration week we are seeing some dividend arbitrage in the most active options. 3M Co. (NYSE: MMM) pays a 0.48 cent dividend tomorrow and it saw (NYSE: MMM) very heavy volume on the May 80 calls (MMMEP) with over 181,000 contracts. The May 75 calls (MMMEO) moved 90,000 contracts of 3M stock. Likewise Wal-Mart (NYSE: WMT) options were active in front of its 22 cent dividend. The Walmart May 45 calls (WMTEI) crossed 74,000 contracts. ChevronTexaco (NYSE: CVX) saw volume on the May 75 calls (CVXEO) with over 73,000 options trading. In options there were 5.4 million puts and 7.2 million calls traded for a put/call open interest ratio of 0.76

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You To Dump A Stock.

Disclosure note: Mr. Kersten owns and or controls a diversified portfolios of long and short positions that may include holdings in companies he writes about.