Monday Close

S&P 500 1,135.53 -.44%
NASDAQ 2,036.77 -.63%

Leading Sectors
Biotechnology +3.25%
Utilities +1.01%
Energy +.55%

Lagging Sectors
Iron/Steel -1.43%
Networking -1.49%
Semis -2.71%

Other
Crude Oil 36.94 -.08%
Natural Gas 5.75 -.24%
Gold 396.90 +.08%
Base Metals 107.50 +.14%
U.S. Dollar 90.62 -.51%
10-Yr. Long-Bond Yield 4.43% -.54%
VIX 14.77 +5.42%
Put/Call .65 -2.99%
NYSE Arms 1.06 +32.50%

After-hours Movers
FWHT +20.1% after beating 1Q estimates and raising 2Q/04 guidance.
BLUD +10.4% after announcing that the FDA has cleared Galileo for marketing in the U.S.
PHM +3.5% after beating 1Q estimates and raising 04 forecast.
SLAB -4.86% on profit-taking after beating 1Q estimates and raising 2Q guidance.
CAMP-29.9% after beating 1Q estimates, but announcing it was being served with complaint alleging certain violations of California's labor code.
CNXT -3.29% after beating 2Q estimates and lowering 3Q guidance.

Recommendations
Goldman Sachs reiterated Underperform on GBTVK and Outperform on PMMAY.

After-hours News
U.S. stocks finished lower Monday as weak technology shares overshadowed soaring biotechnology stocks. After the close, the Wall Street Journal reported that UnitedHealth Group(UNH) is purchasing Oxford Health Plans(OHP) for about $4.9B. Oxford stockholders will receive .6357 UnitedHealth shares and $16.17 in cash for each share they own or about $56.79/share. Verizon probably added 1.1M subscribers in the first quarter after winning business from AT&T Wireless and local carriers including its parent, Bloomberg reported. Iraq's Governing Council, the U.S. and the U.N. will set up an electoral commission before the end of May to organize national elections that art to be held in Iraq by Jan. 31, 2005, Bloomberg reported. At least $1.1 billion in "commissions" were paid directly into U.N. coffers, supposedly to cover the cost of administering the $67 billion Iraqi oil for food scheme, while Saddam diverted funds intended for the poor and sick of Iraq to bribe foreign governments and prominent overseas supporters of his regime, London's Telegraph reported.

BOTTOM LINE: The Portfolio rose slightly today and I did not make any changes on the close, thus leaving market exposure at 100% net long. The Biotechnology Index confirmed its March 5 breakout today on good volume. The BBH, Biotech HOLDRs Trust, is a good way to play the long side of this risky sector without the volatility associated with an individual stock, as one of our readers mentioned earlier in the day. I think one of the main things weighing on U.S. shares today was China. Chinese ADRs fell across the board on concerns that the economy is in for a hard landing and that SARS may become a problem again. I do not believe either of these views will prove to be correct, however I am closely monitoring the situation.