August 2nd, 2006
Financial Pulse
Summary:
The spread between corporate and treasury bonds has been holding steady near its long term (since 1962) average but toward the low end of the more recent history. The low spreads should be positive for the stock market and capital spending, as it reduces the cost companies pay for capital. We’d hate to see what the market and capital spending would look like if the spread widened.
Watch List news:
Las Vegas-based Sierra Health Services (SIE) reported a net profit of $33.53 million, or 54 cents a share, vs. $33.84 million, or 51 cents a share, in the same quarter last year, which included $12 million in operating income from Sierra’s expired military health services operations segment. Revenue rose to $424.4 from $348 million. Medical premium revenues rose 25.1% to $400.7 million from $320.4 million in the second quarter of 2005. Analysts, on average, had been looking for earnings of 52 cents a share on revenue of $446 million, according to Thomson First Call.
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