Stocks are broadly higher at the start off the shortened Memorial Day holiday week. Historically, this period bodes well for the bulls; the S&P 500 typically returns an average of 1.2% in the week following Memorial Day. And some of the stocks riding high today are chemicals giant Ashland Inc. (NYSE: ASH), jewelry retailer Zale Corporation (NYSE: ZLC) and drugmaker Sanofi-Aventis SA (NYSE: SNY).
Helping lift stocks markets is the expectation Greece will soon receive additional financial aid. While the dollar appears to be losing ground against the Euro, commodities are up. Crude oil is pushing past the $100 mark.
On the downside, the Case-Shiller 20-city home price index — which tracks housing prices in the major U.S. metropolitan areas — shows housing prices have reached their lowest level since 2006, due to a record number of foreclosures. Meanwhile, U.S. consumer confidence has fallen to a lower-than-expected 60.8, from a revised 66 in April. Worries about jobs, inflation as well as food and gas prices seem to be weighing heavily on consumers.
All these factors are affecting the market, causing the following NYSE stocks to hit new 52-highs and lows. Here are some highlights:
Stocks hitting new 52-week highs
Ashland Inc. (NYSE: ASH) – The specialty chemicals company, most noted for its Valvoline motor oil, today announced the acquisition of International Specialty Products, for $3.2 billion. Through the purchase, Ashland should be able to better tap the $5-billion specialty skin, hair and oil product ingredient market.
Zale Corporation (NYSE: ZLC) – The jewelry store reported a 15.2% increase in same-store sales on Thursday, May 26. Traders have remained optimistic about the stock this week, pushing it up nearly 10% in trading so far today.
Sanofi-Aventis SA (NYSE: SNY) – Is among a host of pharmaceutical companies up in early trading today. SNY spiked on news that its drug Lyxumia has been shown to significantly reduce blood sugar levels in type 2 diabetes patients and aid in weight loss. In June, the U.S. Food and Drug Administration (FDA) will meet to debate approval of several new drugs.
Stocks hitting new 52-week lows
Dreamworks Animation (NYSE: DWA) – The animated film production company has dropped about -9%, so far, in trading today. The stock tumbled following a downgrade from “buy” to “above average” from investment firm Caris & Company.
Nokia Corp (NYSE: NOK) – The world’s largest mobile phone maker, has fallen more than -16.5% this morning on news the company might not make a profit in its core business this quarter, due to increased competition from its smartphone competitors.
Platinum Underwriters Holdings (NYSE: PTP) – The property and marine insurance company is down over -1% in trading this morning.
As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.
