Wednesday, July 06, 2005

Stocks Finish Lower as Energy Prices Rise

Indices
S&P 500 1,194.94 -.83%
DJIA 10,270.68 -.97%
NASDAQ 2,068.65 -.49%
Russell 2000 648.27 -.76%
DJ Wilshire 5000 11,915.84 -.76%
S&P Barra Growth 569.49 -.87%
S&P Barra Value 621.38 -.80%
Morgan Stanley Consumer 567.58 -.91%
Morgan Stanley Cyclical 716.66 -.57%
Morgan Stanley Technology 475.76 -.07%
Transports 3,521.21 -.38%
Utilities 383.17 -1.83%
Put/Call .96 +43.28%
NYSE Arms 1.51 +84.95%
Volatility(VIX) 12.27 +5.05%
ISE Sentiment 232.00 +87.10%
US Dollar 90.38 -.07%
CRB 313.32 +1.15%

Futures Spot Prices
Crude Oil 61.30 +.03%
Unleaded Gasoline 178.70 -.25%
Natural Gas 7.70 +.16%
Heating Oil 179.80 +.18%
Gold 424.80 +.07%
Base Metals 121.12 +1.88%
Copper 153.00 unch.
10-year US Treasury Yield 4.06 -.90%

Leading Sectors
HMOs +1.63%
Steel +1.25%
Semis +1.05%

Lagging Sectors
Oil Service -1.25%
Restaurants -1.55%
Energy -1.75%

Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
Goldman Sachs:
- Reiterated Underperform on PVH.
- Rated DE Underperform.

Afternoon/Evening Headlines
Bloomberg:
- Yahoo! is hiring engineers and adding services to carve out a bigger piece of the expanding market for Internet-based calling.
- US 10-year Treasuries rose for the first day in three in NY on speculation yields that reached a two-week high failed to reflect expectations for tame inflation.
- President Bush selected former Senator Fred Thompson, a lawyer in real life and on tv, to advise the eventual nominee in the anticipated Senate confirmation fight to replace Justice Sandra Day O’Connor on the US Supreme Court.
- Crude oil surged to a record $61.35 a barrel in NY on speculation that Tropical Storm Dennis may disrupt shipments along the US Gulf coast.

Financial Times:
- The selection of London to host the 2012 Olympic Games will generate $3.5 billion for the UK’s tourism industry.
BOTTOM LINE: The Portfolio finished slightly lower today on losses in my Internet and Homebuilding longs. I trimmed some existing longs in the afternoon, thus leaving the Portfolio 75% net long. The tone of the market was negative today as the advance/decline line finished at session lows, most sectors fell and volume was around average. Measures of investor anxiety were mostly higher into the close. Overall, today’s market action was modestly negative. Tech stocks outperformed throughout the day, finishing around breakeven. Stocks will likely remain under modest pressure until energy prices stabilize.

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