The Dow Jones Industrial Average, which gained...
The Dow Jones Industrial Average, which gained 58 points last week, gained an additional 13 points Monday on low volume, according to Irving Katz, director of research for Thomas Green/San Diego Securities.
The gain was a “surprise because the budget resolution is still in disarray as Congress works to come up with some form of a budget-cutting package and government remains on hold,” Katz said. “In addition, unemployment has risen, the dollar is at new lows, war threatens in the Mideast and the deficit remains unmanageable.”
“To all of that, you add consumer confidence that remains low, retail sales that evidently will make poor comparisons to last year and you have indications that the economy is entering a recession,” Katz said.
Most San Diego stocks remained near their year lows in recent days, Katz said. Last week three stocks--Medical Imaging Centers, Molecular Biosystems and Xytronyx--moved up more than a point.
Molecular Biosystems, the largest gainer, was up $1.125 as it reported successful clinical studies for its Albunex ultrasound imaging agent.
Earnings reports for the third quarter, which will flood the market in coming weeks, should cause some movement in San Diego stocks, Katz said.
Mission West Properties reported third-quarter earnings of $.26 and nine-month earnings of $1.64 but still gained only $.375 for the week, Katz said, because most of its earnings were driven by the sale of an office building.
Mail Boxes Etc., which finalized its sale of 400,000 shares to United Parcel Service at $25.25, remained unchanged at $22. The company also announced the formation of an electronic tax-filing subsidiary.
Magma Power was down $2.50 to $27 where it still sports a price/earnings ratio of 24.5 times trailing 12-month earnings.
Price Co. dropped $1.50 to $29.25 as an analyst removed his buy recommendation and lowered his earnings estimate for Price during the current year. At its current price, Price Co. is selling at its lowest P/E ratio ever, Katz said.
The San Diego County stock listings now includes National Health Laboratories, which conducts medical laboratory testing, and SGI International, an energy-technology company.
