S&P 500 1,187.76 +.55%
DJIA 10,507.97 +.57%
NASDAQ 2,005.40 +.67%
Russell 2000 613.03 +.97%
DJ Wilshire 5000 11,695.44 +.57%
S&P Barra Growth 572.88 +.48%
S&P Barra Value 610.49 +.62%
Morgan Stanley Consumer 586.51 +.62%
Morgan Stanley Cyclical 743.30 +.46%
Morgan Stanley Technology 452.77 +.28%
Transports 3,645.99 +.98%
Utilities 369.84 +.98%
Put/Call 1.18 +15.69%
NYSE Arms .96 -4.66%
Volatility(VIX) 11.30 -5.68%
ISE Sentiment 157.00 +8.28%
US Dollar 84.44 +.26%
CRB 302.63 -.51%
Futures Spot Prices
Crude Oil 51.33 -1.02%
Unleaded Gasoline 152.18 -.78%
Natural Gas 7.05 -.55%
Heating Oil 145.38 -.78%
Gold 430.30 +.23%
Base Metals 129.60 -.77%
Copper 149.70 +.07%
10-year US Treasury Yield 4.35% -1.72%
Leading Sectors
Homebuilders +2.69%
Insurance +1.52%
Gaming +1.48%
Lagging Sectors
Defense -1.23%
Energy -1.43%
Oil Service -1.92%
After-hours Movers
ELN +18.0% after two-year data for the first time, showed that treatment with TYSBARI led to significant reduction in disability progression, the rate of clinical relapses and brain lesions in patients with relapsing forms of multiple sclerosis.
FARO +5.0% after giving positive 1Q/05 outlook.
CPWR -10.4% after lowering 4Q guidance.
FDRY -7.3% after cutting 1Q estimates.
IMCL- 9.4% after saying that it would delay seeking US approval for a new use of the Erbitux cancer drug until the second half of 2005.
IMDC -9.5% after its silicone breast implants failed to win the backing of a US government advisory committee because of questions about their safety.
Evening Review
Detailed Market Summary
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
Futures Recap
S&P 500 Gallery View
Timely Economic Charts
PM Market Call
Real-time/After-hours Stock Quote
In Play
Afternoon Recommendations
Goldman Sachs:
- Reiterated Outperform on GCI and Underperform on PBG.
Afternoon/Evening Headlines
Bloomberg:
- Bill Gross, manager of the world’s biggest bond fund, said he expects reports to show that the US economy is slowing, which may cause bond yields to decline.
- Inamed’s silicone breast implants failed to win the backing of a US government advisory committee because of questions about their safety.
- US Senators are “very close” to bipartisan agreement on a proposed $140 billion trust fund to compensate asbestos-exposure victims, said top lawmakers on the committee considering the legislation.
- US Treasury 10-year notes had their biggest gain in more than two months after minutes of the Fed’s most recent meeting suggested policy makers see no need to increase interest rates at a faster pace.
- Fannie Mae spent $87 million for an advertising campaign that helped thwart efforts by Congress in 2003 and 2004 to create a tougher regulator for the government-charted company.
- Crude oil fell almost $2 a barrel in NY, the sixth decline in seven sessions, after the IEA lowered its forecast for world fuel demand.
- Maurice “Hank” Greenberg, the ousted CEO of AIG, transferred about $2.2 billion of his AIG shares to his wife four days before he stepped down.
Newsweek:
- US securities regulators are examining what Berkshire Hathaway Chairman Warren Buffett knew about a transaction between the company’s reinsurance unit and AIG.
Financial Times:
- China’s regulator may announce plans to begin the process of reducing the state’s shareholdings in the country’s listed companies.
BOTTOM LINE: US stocks finished higher today as long-term interest rates fell and energy prices declined. The Portfolio finished higher on gains in my Homebuilding, Retail, Gaming and Technology longs. I added a few more longs from various sectors in the afternoon, thus leaving the Portfolio 100% net long. One of my new longs is WMT and I am using a $47.75 stop-loss on this position. The tone of the market strengthened meaningfully into the afternoon as the advance/decline finished higher, most sectors rose and volume accelerated. Measures of investor anxiety were mostly lower into the afternoon. Overall, today’s market action was positive, considering the shift in psychology towards interest rates, commodity prices and inflation. The spike in the CRB Index a few weeks ago was likely the result of a “throwing in the towel” sentiment towards prices as participants began expecting future price increases from ever higher levels instead of declines. This resulted in the appearance of a spike in demand for the underlying commodities. With global demand declining, the US dollar firming and sentiment shifting, excess stockpiles and inventories will likely lead to an exaggerated effect on the downside in commodity prices as a demand vacuum materializes. Falling commodity prices and low unit labor costs should result in decelerating inflation readings and stable-to-lower long-term interest rates. Investors will likely worry over the next few months that growth is slowing too much. While a temporary pocket of unacceptably slow growth is possible, the second half of the year should see an acceleration in US economic growth as lower energy prices, improving employment prospects and low interest rates boost consumer sentiment and spending.
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