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B4 The Bell Thursday September 9


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DJ Saudi Oil Price Cuts Not Evidence Of Price War

 

LONDON (Dow Jones)--Saudi Arabia's sharp oil price cuts for October have sparked other members of the Organization of Petroleum Exporting Countries to slash their own official selling prices.

 

"We are having to follow Saudi Arabia in their lead to cut prices," said an OPEC official. However, the official stopped short of saying that an oil price war is brewing.

 

Saudi Arabian Oil. Co., or Saudi Aramco (SOI.YY), cut the October official selling price to Northwest Europe on all its major grades by between $1.90 to $2.25 a barrel earlier this week.

Dow Jones Newswires

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Twig- You can't buy and sell the AD line. Price based indicators, including cmaps have worked well today.

That's true Doc. The A/D line and volume ratio are not primary trading indicators. But I find they can be a usefull way of pulling back the curtain to see what the sneaky bastards are up to. Just one piece of evidence - that today is not confirming a big drop - so far. My fingers are crossed.

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Pathmark (PTMK) reports ($0.05) missing by $0.09

lowers Y04 guidance by 50%

Same store sales 1.3%

revenues rose 1.6% year/year to $1.01b

 

"Earnings were negatively affected by incremental costs associated with increased promotional spending as well as continued gross profit pressures from inflation in certain categories"

 

"... cites higher medical expenses and a weakening in consumer demand.."

 

When supermarkets are warning and have negative (inflation adjusted) sales a recession has taken firm roots. I don't think these issues are unique to PMTK as Albertsons has been saying the same things for 6mos.

Glad I closed out my SafeWay calls flat yesterday.

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