Monday, November 22, 2004

Monday Close

S&P 500 1,177.24 +.59%
NASDAQ 2,085.19 +.70%


Leading Sectors
Boxmakers +2.59%
Utilities +1.78%
Iron/Steel +1.42%

Lagging Sectors
Drugs +.12%
Biotech +.04%
Telecom -.38%

Other
Crude Oil 48.30 -.70%
Natural Gas 6.67 -1.29%
Gold 449.20 +.04
Base Metals 117.39 -.97%
U.S. Dollar 83.10 -.25%
10-Yr. T-note Yield 4.17% -.60%
VIX 12.97 -3.93%
Put/Call .71 -11.25%
NYSE Arms .99 -20.80%

After-hours Movers
SGTL +6.0% after boosting 4Q estimates.
CMNT +18.7% after substantially beating 3Q estimates.
DY -20.5% after missing 1Q estimates and lowering 2Q guidance.

Recommendations
Goldman Sachs reiterated Underperform on HMT, MHX and IHR.

After-hours News
U.S. stocks finished modestly higher today on optimism over future U.S. economic growth, short-covering and bargain-hunting. After the close, New York Democratic Attorney General Spitzer has told people that he plans to run for governor in 2006, the AP reported. BT Group Plc would de-list from the U.S. stock market due to the "great burden" of the cost of the Sarbanes-Oxley corporate governance legislation, the Financial Times reported. Viacom Chairman and CEO Redstone said he has "reason to believe" other suitors may be interested in buying video-game maker Midway Games, Bloomberg reported. Childhood obesity leads to enlarged heart muscles and a higher risk for heart failure later in life, according to a study published today by the American Heart Assoc. Citigroup agreed to sell its transportation-finance business to GE for about $4.4 billion in cash, Bloomberg reported. Owens-Illinois said its biggest shareholder, KKR, plans to sell all or some of its shares in the company "shortly", Bloomberg said. ABC's "Desperate Housewives" drama, featured in a promotion before last week's "Monday Night Football" that is being reviewed by the FCC, drew the best big-city ratings in its seven-episode history last night, Bloomberg reported. Marsh & McLennan may settle claims of rigged bids and kickbacks with a month, CEO Cherkasky said. Oracle said it is at an impasse with PeopleSoft, signaling the two software makers will wage a proxy battle to resolve Oracle's $8.8 billion takeover bid, Bloomberg reported.

BOTTOM LINE: The Portfolio finished slightly higher today on strength in my steel, internet and nanotechnology longs. I did not trade in the afternoon, thus leaving the Portfolio 125% net long. The tone of the market improved throughout the day as and finished near their best levels. As well, small-caps and cyclicals outperformed and interest rates fell. Economic data should begin to exceed expectations over the next few weeks on more optimism, hurricane rebuilding, an end to the depressing effects of the election, larger year-end bonuses, lower commodity prices, pent-up demand, year-end budget flushes and corporate spending before tax incentives expire. I continue to expect U.S. stocks to rally at least through year-end with minor pullbacks along the way.

No comments: