NASDAQ 2,077.87 -1.26%
Leading Sectors
Oil Service +1.51%
Energy +.93%
Commodity +.53%
Lagging Sectors
Homebuilders -2.54%
Semis -2.60%
Airlines -3.20%
Other
Crude Oil 47.70 +3.20%
Natural Gas 6.87 -.04%
Gold 447.80 +1.13%
Base Metals 118.03 -1.40%
U.S. Dollar 83.05 -.76%
10-Yr. T-note Yield 4.19% +1.96%
VIX 13.55 +4.47%
Put/Call .93 +52.46%
NYSE Arms 1.37 +47.31%
Market Movers
OSIP -9.0% after CSFB analyst Mark Augustine said estimates for Tarceva sales are unrealistically high and reiterated his underperform.
TASR -7.7% on Business Week report of insider selling.
NVDA +4.6% after it signed a multi-year agreement to cross-license some patents with INTC.
PLAY +55.6% on strong demand for IPO.
INCX +25.1% after beating 3Q estimates and raising 4Q outlook.
SRNA +18.5% after beating 3Q estimates and raising 4Q guidance.
ADSK +7.5% after beating 3Q estimates, eliminating dividend, announcing 2-for-1 split and boosting guidance.
ATU +7.1% after agreeing to buy Key Components from an investor group.
MMS +10.2% on Legg Mason upgrade to Buy.
JLG -14.9% after lowering 2005 estimates and CSFB downgrade to Neutral.
BCSI -11.3% after missing 2Q estimates and lowering 3Q guidance.
Economic Data
None of note.
Recommendations
-Goldman Sachs reiterated Outperform on INTC, MRVL, DNA, DIS, FSH, PETC, PG. Goldman downgraded MU, AMAT, AEIS to Underperform. Goldman raised NSM to Outperform.
-Citi SmithBarney upgraded RSH to Buy, target $40. Citi reiterated Buy on WYE, target $44. Citi reiterated Buy on G, target $48. Citi downgraded ANN, LTD and TLB to Sell. Citi reiterated Buy on UNM, target $20. Citi reiterated Buy on GE, target $38. Citi reiterated Buy on PETC, target $42.
-JP Morgan downgraded IRM to Underweight. JP Morgan rated MYK Overweight.
-UBS cut NCX to Reduce, target $40.
-CSFB cut TMK to Underperform.
-Banc of America rated AMZN Sell.
-Morgan Stanley cut IRM to Underweight, target $27.
-Legg Mason raised MMS to Buy, target $38.
Mid-day News
U.S. stocks are lower mid-day on rising oil and interest rates. Bank of France Governor Noyer said the central bank will sell 500 to 600 tons of gold over the next five years and increase reserves denominated in currencies to improve revenue and pay a higher dividend to the state, Bloomberg said. Pennsylvania's Senate approved a bill that would require utility companies to use alternative energy sources to generate 18% of the state's electricity by 2020, the AP reported. The median price of a home in the San Francisco Bay Area climbed to $552,000 in October, the San Francisco Chronicle reported. San Francisco International Airport expects to serve 840,000 travelers during Thanksgiving, the busiest holiday for the airport since 2000, the San Francisco Chronicle reported. Russia plans to auction control of OAO Yukos Oil's main business for as little as $8.6 billion to collect back taxes, threatening to bankrupt the country's biggest oil exporter after a 16-month dispute, Bloomberg reported. Oracle CEO Ellison probably won enough support among PeopleSoft investors to press on with his 17-month fight to buy the business-management software company, Bloomberg said. The dollar fell to its lowest in more than four years against the yen and dropped versus the euro after Fed Chairman Greenspan said foreign investors will tire of financing the record current-account deficit, Bloomberg reported. Crude oil is rising as bad weather disrupted tanker shipments from southern Iraq and attacks on pipelines threatened to slow exports from the north, Bloomberg said. Dolby Labs, the developer of a music and motion picture sound system that won Academy Awards, said it plans to raise $460 million by selling shares to the public for the first time, Bloomberg said.
Bottom Line: The Portfolio is slightly lower mid-day as my declining semi and software longs are more than offsetting my rising oil service and Russian ADR longs. I have not traded today and the Portfolio remains 100% net longs. Option expiration, rising oil and profit-taking are the main culprits behind today's losses. The declining dollar is not of great concern at this point as interest rates remain very low by historic standards. Those that missed the recent rally should use any weakness over the next few days to add long exposure. I continue to believe equities will extend recent gains as economic data show acceleration this quarter. I expect U.S. stocks to rise modestly into the close on short-covering and bargain-hunting.
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