Monday, June 28, 2004

Monday Close

S&P 500 1,133.52 -.08%
NASDAQ 2,019.82 -.28%

Leading Sectors
Broadcasting +1.82%
Fashion +.96%
Airlines +.68%

Lagging Sectors
Oil Service -2.16%
Disk Drives -2.41%
Homebuilders -2.94%

Crude Oil 36.19 -.14%
Natural Gas 6.22 +.39%
Gold 401.60 +.07%
Base Metals 109.41 -.07%
U.S. Dollar 88.70 -.19%
10-Yr. T-note Yield 4.74% +2.10%
VIX 16.07 +5.79%
Put/Call .60 -9.09%
NYSE Arms 1.10 -14.06%

After-hours Movers
NYB +7.07% on speculation over Citigroup takeover.
WM -9.9% after lowering 04 earnings forecast substantially on rising mortgage rates.

Goldman Sachs reiterated Underperform on FRX. Goldman reiterated Outperform on FS and IGT. A recent survey by Bank of America showed spending for business application software will increase over the next 6-12 months.

After-hours News
U.S. stocks finished slightly lower today on profit-taking after an early handover of power to Iraq and rising interest rates. After the close, New York Community Bancorp is close to an agreement to sell itself for around $6 billion, CNBC reported. General Motors said its U.S. sales this month are falling short of its expectations because of lagging customer demand, Bloomberg said. U.S regulators approved leeches for restoring circulation in blocked veins by removing pooled blood, the first FDA sanction for a treatment used for thousands of years, Bloomberg said. T-Mobile has asked mobile operators and handset manufactures to adopt a standard platform for the mobile music market, the Financial Times said. Target says its same-store-sales for June will come in well below its 5-7% forecast, Bloomberg reported.

BOTTOM LINE: The Portfolio finished substantially higher today and I took more profits in the afternoon and added to my oil service shorts, leaving the Portfolio with 100% net long market exposure. I added to my PTEN short and I am maintaining a $33.80 stop-loss on this position. The action in the bond market was disappointing today, however I do not expect a substantial rise in yields for the remainder of the week. I continue to expect a strong finish to the week for U.S. stocks on the Fed rate-hike, declining energy prices, quarter-end repositioning and positive economic reports.

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