Tuesday, August 10, 2004

Tuesday Close

S&P 500 1,079.04 +1.30%
NASDAQ 1,808.70 +1.92%


Leading Sectors
Airlines +3.34%
Iron/Steel +3.09%
Internet +2.78%

Lagging Sectors
Tobacco +.38%
Energy -.38%
Oil Service -.45%

Other
Crude Oil 44.49 -.07%
Natural Gas 5.76 -.48%
Gold 400.40 -.47%
Base Metals 108.48 +.50%
U.S. Dollar 88.75 +.41%
10-Yr. T-note Yield 4.30% +1.04%
VIX 17.44 -7.62%
Put/Call 1.03 +14.44%
NYSE Arms .48 -44.83%

After-hours Movers
CSCO -6.3% after beating 4Q estimates, but giving cautious outlook.
NSM -8.3% after cutting revenues estimates for 1Q.
ANF -7.6% after meeting 2Q estimates and lowering 3Q forecast.
UTSI -5.35% after requesting a five-day extension with respect to the filing of its quarterly report.
CSC -4.5% after meeting 1Q estimates and reaffirming 05 guidance.

Recommendations
Goldman Sachs reiterated Underperform on NFS. Goldman reiterated Outperform on FS and CFC.

After-hours News
U.S. stocks finished sharply higher today after the Fed raised rates 25 basis points and said recent economic weakness was temporary. After the close, the California Public Employees' Retirement System, the largest U.S. pension fund, posted its biggest annual return in six years on gains in its stocks, bonds and real estate holdings. Cisco Systems said fourth-quarter profit rose 41%, bolstered by surging revenue from new businesses such as Internet phone calling and security, Bloomberg said. Walt Disney said third quarter net income climbed 20%, boosted by higher revenue from its them parks and cable tv networks, Bloomberg said.

BOTTOM LINE: The Portfolio finished substantially higher today on strength in my alternative energy, security and internet longs and weakness in my Chinese ADR shorts. I did not trade in the afternoon, leaving the Portfolio 100% net long. Today was a good day for the Bulls as domestic terror news and disappointing Fed commentary couldn’t derail the rally. However, I want to see the market's reaction tomorrow to Cisco's report today before I conclude this is more than an oversold bounce.

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