September was continuing its historic role as the worst month for stock markets
with the Standard & Poors 500 Index down more than 14 points, a loss of over
1.2%, to under 1,172. There is gloomy news abounding from both the U.S. and
Europe concerning jobs, debt and consumer confidence. An op-ed from Treasury
Secretary Timothy Geithner in todays Financial Times did little to restore hope
among investors. Declining stocks outnumbered those gaining by better than
3-to-1. Bearish sentiment is at 55% this morning. More than 160 stocks have hit
new lows today, with only 31 reaching a new high. Down more than 12%, a loss of
more than $4 a share to take the stock under $29.75, was Internet domain name
provider VeriSign (NASDAQ: VRSN ). The resignation of its CEO cooled hopes for a
takeover VeriSign rose more than 15% this month on hopes it would be acquired.
VeriSign is up more than 12% year to date. Kroger Co. (NYSE: KR ) was off more
than 7%, about $1.70, to fall under $21.70. Earnings released this morning
disappointed Wall Street. Supermarket chains are facing intense competition from
big-box retailers such as Wal-Mart and Costco. Kroger is down about 1% for the
week, quarter and year. Another supermarket chain down more than 5% was Safeway
(NYSE: SWY ), trading around $17.70 per share after falling about a dollar.
Economic woes, dwindling consumer confidence and bargain hunting are hurting
supermarket chains. Safeway is down about 15% for the quarter and the past six
months. Up more than 7% was Micron Technology (NASDAQ: MU ) to over $6.70,
picking up more than 40 cents. CNBC featured a segment Friday morning titled
"Why Bulls are Charging into Micron." Micron Technology is up almost 6% for
the week. Another chip maker rising was SanDisk (NASDAQ: SNDK ), up by more than
$1.70 per share, or about 4.5%, to around $40.25. Avian upgraded SanDisk to
positive on Thursday. For the week, SanDisk is up more than 5%. Taking off in
early-morning action was Southwest Airlines (NYSE: LUV ), trading above $8.20 a
share, a gain of about 10 cents, or 1.2%. As with all airlines, Southwest
Airlines faces high fuel costs and a weak economy. The stock is down about 6%
for the week, 26% for the quarter and 29% for the year. Jonathan Yates does not
own any of the stocks mentioned in this article.
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