Thursday, September 15, 2005

Stocks Finish Mixed as Higher Long-term Rates Offset Lower Energy Prices

Indices
S&P 500 1,227.73 +.05%
DJIA 10,558.75 +.13%
NASDAQ 2,146.15 -.15%
Russell 2000 665.42 -.14%
DJ Wilshire 5000 12,262.57 +.02%
S&P Barra Growth 586.37 +.03%
S&P Barra Value 637.10 +.06%
Morgan Stanley Consumer 582.97 +.15%
Morgan Stanley Cyclical 733.58 -1.0%
Morgan Stanley Technology 501.74 -.51%
Transports 3,596.99 +.36%
Utilities 424.01 +1.01%
Put/Call .83 -6.74%
NYSE Arms .90 +4.33%
Volatility(VIX) 12.49 -3.25%
ISE Sentiment 108.00 -43.46%
US Dollar 88.10 +.49%
CRB 319.71 -.61%

Futures Spot Prices
Crude Oil 64.49 -.40%
Unleaded Gasoline 188.90 -.51%
Natural Gas 11.35 +.12%
Heating Oil 190.10 -.58%
Gold 459.30 unch.
Base Metals 125.32 -1.87%
Copper 160.25 -.12%
10-year US Treasury Yield 4.21% +1.16%

Leading Sectors
Gold & Silver +1.68%
Restaurants +1.37%
Utilities +1.01%

Lagging Sectors
I-Banks -.86%
Semis -1.01%
Airlines -2.94%

Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
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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 Outperform on FDC.

Afternoon/Evening Headlines
Bloomberg:
- Bonds of Albertson’s, the grocer that put itself up for sale on Sept.2, were cut to “sell” from “neutral” by Banc of America.
- Richard Scruggs, a key architect of the $246 billion settlement between the tobacco industry and US states, plans to file a lawsuit against some insurance companies next week on behalf of residents of Mississippi and Alabama.
- Allstate Corp., State Farm Mutual Automobile Insurance, and three other insurers were sued by Mississippi Attorney General Jim Hood for not covering flooding damage to homes in the wake of Hurricane Katrina.
- Delta Air Lines intends to cut $ 1 billion in annual costs by 20008 as part of its plan to reorganize under bankruptcy protection.
- The Chicago Board of Trade increased the price at which it will sell its first shares to the public by as much as 48%, valuing the exchange at about $2.5 billion.
- GE is forming a venture with Barry Sternlicht’s Starwood Capital Group LLC to invest in coal, gas and wind power generation projects.

Alternative Investment News:
- PIMCO, manager of the world’s largest bond fund, is planning a global credit hedge fund.

Financial Times Deutschland:
- The IMF cut its forecasts for economic growth in the euro region and the UK in 2005 and 2006 after oil prices climbed to a record.
BOTTOM LINE: The Portfolio finished unchanged today as losses in my Semiconductor longs were offset by my Energy-related shorts. I added to my IWM and QQQQ shorts in the afternoon, thus leaving the Portfolio 50% net long. The tone of the market was negative today as the advance/decline line finished lower, sector performance was mixed and volume was about average. Measures of investor anxiety were mixed into the close. Overall, today’s market action was neutral. The ISE Sentiment Index hit 95.0 mid-day. This is the first time it has breached 100.0 since mid-June. In isolation, this is bullish for stocks. I expect talk of a Fed "pause" after a September hike will increase after tomorrow's Consumer Confidence report.

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