S&P 500 1,157.76+1.07%
NASDAQ 2,089.66+.69%
Leading Sectors
I-Banks+3.88%
Iron/Steel+3.41%
Homebuilders+2.94%
Lagging Sectors
Fashion+.32%
Defense+.08%
HMO's-2.01%
Other
Crude Oil 33.9-.24%
Lumber 377.50+2.72%
VIX 15.39-3.45%
U.S. Dollar Index 85.08-.89%
10-Yr. Long-Bond Yield 4.03%-2.08%
After-hours Movers
INVN+3.41% up after meeting 4th quarter earnings estimates and affirming forecasts.
BRCD+2.96% up after beating 4th quarter earnings expectations and raising 1st Q guidance.
SONS-21.0% down after disclosing that it may restate results for 03 and before because some sales might not have been recorded at the right time.
CSC-5.21% down on disappointing 4th quarter earnings guidance.
After-hours News
U.S. stocks surged Wednesday, pushing the DJIA to its highest level since June 2001, after Federal Reserve Chairman Alan Greenspan said the central bank can remain patient before raising rates even as the economy expands at a faster-than-expected pace. The U.S dollar and interest rates declined on this news. Financials faired especially well today. Declining rates and Comcast's bid for Disney led investors to conclude that more takeovers will follow, generating large i-banking fees. As well, there was a continuation of the rotation back into tech and deep cyclicals, especially basic materials. Vodafone's CEO will recommend a bid of more than $30 billion for AT&T Wireless Services to his board this week, the Financial Times reported. Goodyear Tire said the SEC is investigating the company's restatement of financial results. GE was rated a new "Buy 2" at UBS.
BOTTOM LINE: Many different sectors participated in the rally today, however the advance/decline line wasn't as strong as I would have liked. Volume wasn't exceptional either. However, the portfolio had an excellent day and is now 100% net long. The few positions I added were in the tech and basic materials areas. OHB, the small-cap homebuilder that I bought 2 days ago, had a great day(+5%). I am holding onto this position, as I expect it to rally further over the course of the next few weeks on great fundamentals, improving technicals and a low valuation. The economy is in a sweet spot right now with great growth, low inflation, improving labor conditions, excellent profits and interest rates at 40-yr. lows. I am looking for the trends over the last few days to continue for awhile. The market will trend higher and select stocks could see extraordinary gains.
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