S&P 500 1,128.59 +.18%
NASDAQ 2,019.56 +.27%
Leading/Lagging Sectors
Gaming+2.02%
Airlines+1.78%
Retail+1.68%
Oil Service-1.45%
Hospitals-1.43%
Biotech-.97%
After-hours Movers
CAMD up after earnings exceeded expectations.
MXIM up after beating earnings expectations and raising guidance.
PGTV down significantly after Direct TV said it ended mediation over the companies' marketing relationship and will proceed to trial.
CELL down significantly on earnings and revenue miss.
APCC down after beating earnings estimates, but lowering guidance.
After-hours News
Morgan Stanley Capital Intl. may upgrade S. Korea status to developed market from emerging market. This would likely increase foreign fund flows to S. Korea. Gephardt will endorse Kerry tomorrow. President Bush named Senator John McCain to Iraq investigation panel. Australian Prime Minister John Howard and President Bush are likely to negotiate directly on a free-trade deal.
BOTTOM LINE: US equity markets rallied after Fed Governor Bernanke said the Fed can be patient with monetary policy "over the next few months" because a significant rise in inflation this year or next is unlikely. Productivity has averaged 4.6% the last 2 years, the highest since 1950-51, keeping a lid on job creation and inflation. However, Bernanke said he "expects to see big job growth numbers fairly soon." This statement led traders to the conclusion that tomorrow's employment report would exceed the 175,000 estimate for job creation. I am a little concerned that the market didn't rally more. Thus, I covered a few shorts, but kept my net long exposure to only 20%. I will monitor the markets reaction to tomorrow's number before making any further adjustments to the portfolio.
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