Mid-day Update

S&P 500 1,144.40 +.78%
NASDAQ 2,042.87 +.30%

Leading Sectors
Oil Service +3.79%
Energy +2.36%
Homebuilders +2.43%

Lagging Sectors
Networking -.68%
Nanotechnology -1.24%
Iron/Steel -1.43%

Other
Crude Oil 37.50 +1.38%
Natural Gas 5.83 +1.23%
Gold 399.20 +.66%
Base Metals 107.35 -.14%
U.S. Dollar 90.58 -.06%
10-Yr. Long-Bond Yield 4.43% -.09%
VIX 14.55 -1.49%
Put/Call .61 -6.15%
NYSE Arms .72 -32.08%

Market Movers
OSTK +11.0% on short-squeeze, optimism over Google IPO.
NGPS +38.77% after beating 1Q estimate and raising 04 forecast substantially.
VANS +28.27% after announcing purchase by VFC for $20.55/share.
BLUD +25.6% after FDA cleared its Galileo product for use in the U.S.
ISPH +19.8% after reporting positive results from Cystic Fibrosis Drug Study.
CVNS +22.5% after announcing purchase by FNF of 29% stake for $131M.
KRON +15.9% after beating 2Q estimates and raising 3Q guidance.
RNT +13.12% after beating 1Q estimates and raising 2Q forecast.
GLBC -22.4% after saying it is conducting a review of previous financial statements for 02 and 03 and expects to restate some results.
PIR -12.22% after saying April sales were below expectations.
CAMP -27.0% after beating 1Q estimates, but announcing it was being served with complaint alleging certain violations of California's labor code.

Economic Data
Consumer Confidence for April 92.9 versus expectations of 88.5 and 88.5 in March.
Existing Home Sales for March 6.48M versus expectations of 6.20M and 6.13M in April.

Recommendations
Goldman Sachs reiterated Underperform on EDS and RKY. GS reiterated Outperform on EMC, BC, ENH, AXP, X, MET, ADP, CEN, PAYX, LEA, ATYT and PETC. Citi SmithBarney says to swap out of EMN and into NCX. Citi rated CMLS Buy, target $27. Citi added CKFR to Small/Mid-Cap Focus List, replacing FIC. CVS and WAG rated Buy at Deutsche Bank, targets $47 and $37 repectively. NRMX rated Sector Outperform at CIBC, target $33. RTEC cut to Underperform at CIBC. TSA rated Buy at Merrill, target $48. MEE raised to Outperform at CSFB, target $32. CB and WRI raised to Buy at Legg Mason. R cut to Underperform at Bear Stearns. Jim Cramer, of TheStreet.com, thinks UNH purchase of OHP is very good strategic move, target $100 on UNH. TheStreet.com has a positive column on MSFT, target mid-30's.

Mid-day News
U.S. stocks are higher mid-day on a better-than-expected Consumer Confidence report, falling interest rates and strong corporate earnings. Yum! Brands's KFC will start selling oven-roasted chicken, part of an attempt to attract more health-conscious consumers wary of the fast-food chain's fried food, USA Today reported. Interpublic Group won an advertising contract to help promote Verizon Wireless, the Wall Street Journal reported. OPEC may boost its target crude price by 30%, Bloomberg reported. Janus Capital may pay about $200M, including fee reductions, to settle allegations that it allowed clients to engage in improper mutual-fund trading, Bloomberg reported. "Housing sales are likely to remain very strong, even with higher rates, because of a strong economy and a rebounding labor market," said Steven Wood, chief economist at Insight Economics. Confidence in the U.S. economy rose more than expected this month as strong job growth boosted sentiment about current conditions to the highest in almost 2 years, Bloomberg reported. General Motors, Ford, DaimlerChrysler and more than 100 companies and universities will get a share of $350M in grants to design autos that run on hydrogen, U.S. Energy Secretary Spencer Abraham said.

BOTTOM LINE: The Portfolio is down slightly today as one of my biotech longs is falling and other longs are mixed. I am disappointed in the breadth of today's rally and continued relative weakness in technology shares. However, the bond market's reaction to very positive economic reports the last 2 days is a big positive. I took profits in a few long positions this morning, bringing the Portfolio's market exposure to 75% net long.