US Late Market Comment: Pfizer Gains On Patent Win

sg.biz.yahoo.com Friday March 7, 6:30 AM By Gaston F. Ceron Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--U.S. stocks retreated among concerns about the economy and with the shadow of Iraq still hanging over the market.

Worries about corporate results continued to weigh on investors, who were faced with poor retail-sales reports and an earnings warning from Raytheon. Shares of Raytheon fell 5.5%.

The Dow Jones Industrial Average shed 101.61, or 1.31%, to end at 7673.99. The Nasdaq Composite Index fell 11.48, or 0.87%, to 1302.92. The Standard & Poor's 500-stock index dropped 7.75, or 0.93%, to 822.10.

Retail-sales figures for the month of February weren't encouraging, as stores were hampered by the big blizzard that hit the East Coast last month. Shares of Sears Roebuck fell 3.5%, while shares of May Department Stores dropped 2.2%.

Regarding the overall market environment, "after all is said and done, what this is all about is the economy and earnings," said Hugh Johnson, chief investment strategist at First Albany in Albany, N.Y. "And the outlook for the economy and earnings is deteriorating. Oil prices remain so high, and as a result the outlook for the economy is getting gloomier."

A worse-than-expected report on weekly jobless claims also spooked investors, suggesting that employment conditions are weakening, Johnson added. But the economic picture remains muddy, as data on productivity and factory orders painted a more positive picture.

The strategist noted that all the attention that has been given to the Iraqi situation may be masking other problems for the market. "The buzz on Wall Street is that if Iraq gets put behind us the stock market . . . will do well," he said.

But even if the Iraqi standoff is resolved, "there is still North Korea and terrorism, there is still Venezuela," Johnson said.

On the New York Stock Exchange, there were 1,226 issues advancing, 2,027 declining and 189 unchanged.

NYSE volume totaled 1,287,877,770 shares, compared with 1,302,704,190 Wednesday.

The NYSE Composite Index was 4626.02, down 47.73. The average price per share fell 21 cents.

Raytheon shares fell 1.49, or 5.5%, to 25.42. After the end of Wednesday's trading session, the Lexington, Mass., defense contractor confirmed its earlier expectations for 2003 earnings, but it also issued a 2004 profit forecast that was below what Wall Street had been expecting.

After being down as much as 5.7%, shares of Schering-Plough ended down 0.9%, or 15 cents, at 16.45. The Kenilworth, N.J., drug maker's stock was hurt by continued negative reaction to the company's lowered expectations for 2003 earnings, which were released during Wednesday's trading session. On Wednesday, Schering-Plough shares fell 3.1%.

Aegon fell 1.53, or 15%, to 8.42. The Dutch insurer said it will cut its dividend and reported a 35% drop in 2002 net income.

Shares of Tyson Foods shed 83 cents, or 9.7%, to 7.70. Late Wednesday, the Springdale, Ark., chicken and meat company said it expects to report break-even results from ongoing operations for the second fiscal quarter ending in March.

Retailers were hurt by poor sales reports for the month of February. Sears' domestic same-store sales fell by 9.4% from the previous year, a steeper decline than Wall Street had been expecting. Shares of the Hoffman Estates, Ill., company fell 70 cents to 19.30.

May Department Stores, parent of Lord & Taylor, saw its same-store sales fall 8.9% in February. Shares of the St. Louis company dropped 2.2%, or 41 cents, to 18.45.

Gap fared better. The San Francisco parent of Gap, Banana Republic and Old Navy reported an 8% increase in same-store sales, better than Wall Street had forecasted. Shares of Gap rose 33 cents, or 2.6%, to 13.18.

Michaels Stores, Irving, Texas, reported a 4% same-store sales decline. The company's shares dropped 43 cents, or 2%, to 21.37.

US Late Market Comment -5: Pfizer Gains On Patent Win

Pfizer and Pharmacia saw their stocks rise after the pharmaceutical companies - and merger partners - scored a victory, announced late Wednesday, in a patent dispute with the University of Rochester. The university is appealing.

Shares of New York-based Pfizer climbed 20 cents, or 0.7%, to 29.39. Pharmacia, Peapack, N.J., rose 16 cents, or 0.4%, to 40.71.

-By Gaston F. Ceron, Dow Jones Newswires; 201-938-5234; gaston.ceron@dowjones.com