Monday, November 01, 2004

Monday Close

S&P 500 1,130.51 +.03%
NASDAQ 1,979.87 +.25%


Leading Sectors
Airlines +1.30%
Telecom +1.23%
Software +1.09%

Lagging Sectors
Energy -.70%
Drugs -.76%
Oil Service -1.36%

Other
Crude Oil 49.95 -3.50%
Natural Gas 8.72 -.06%
Gold 428.30 -.26%
Base Metals 114.83 -1.10%
U.S. Dollar 85.20 +.34%
10-Yr. T-note Yield 4.07% +1.15%
VIX 16.27 unch.
Put/Call .91 +35.82%
NYSE Arms 1.28 +37.63%

After-hours Movers
AVNX +9.7% after beating 1Q estimates and raising 2Q outlook.
COGT +9.0% after beating 3Q estimates.
WLDA+7.96% after announcing the DOT and CAAC have given it approval to operate a weekly charter air cargo flights between Dayton,OH and Shanghai Pudong Airport.
ODSY +15.1% after strong 3Q results and announcing $30M share buyback.
NSM -7.1% after cutting 2Q forecast.
MVSN -7.1% after beating 3Q estimates and lowering 4Q guidance.
FWHT -6.7% after beating 3Q estimates and widening 4Q guidance.

Recommendations
Goldman Sachs reiterated Outperform on LMT. Goldman reiterated Underperform on SCS.

After-hours News
U.S. stocks finished quietly higher today as falling oil prices more than offset election apprehension. After the close, Merck said an experimental vaccine that may be the first to fight a virus linked to cervical cancer reduced the risk of infections in a company-funded study. Computer Associates Intl. may look in areas beyond security software for future acquisitions, chief operating officer Jeff Clarke told CNBC. Ford Motor failed to reach full production of its three newest car models at a Chicago factory as planned last month, Automotive News said. The second-largest U.S. automaker may not achieve its output goal until late this month, the trade publication said. Freddie Mac, the second biggest provider of financing for U.S. residential mortgages, will resume quarterly reports of its earnings for the second quarter of 2005 after a two-year hiatus, Bloomberg reported. Visteon, an auto-parts supplier, said it will support its biggest customer by giving $1,000 to employees who buy vehicles from Ford Motor, Bloomberg said.

BOTTOM LINE: The Portfolio finished higher today on strength in my internet and wireless longs. I did not trade in the afternoon, thus leaving the Portfolio 125% net long. The tone of the market improved modestly throughout the day. More stocks rose than fell and measures of investor anxiety climbed ahead of the most anticipated and bitter election in modern history. Energy prices dropped again today and have most likely seen their highs for at least the intermediate-term. I continue to expect a modest upwards move for U.S. stocks tomorrow before a more substantial move higher on Wednesday.

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