Tuesday, January 10, 2006

Stocks Finish Mixed After Late-day Rebound

Indices
S&P 500 1,289.69 -.04%
DJIA 11,011.58 unch.
NASDAQ 2,320.32 +.07%
Russell 2000 710.99 +.67%
DJ Wilshire 5000 n/a
S&P Barra Growth 617.09 -.07%
S&P Barra Value 668.13 unch.
Morgan Stanley Consumer 602.50 -.39%
Morgan Stanley Cyclical 808.31 -.75%
Morgan Stanley Technology 552.62 -.09%
Transports 4,218.69 -.46%
Utilities 413.80 +.14%
Put/Call .60 -11.76%
NYSE Arms 1.16 +7.73%
Volatility(VIX) 10.86 -2.43%
ISE Sentiment 160.00 -15.79%
US Dollar 89.33 +.09%
CRB 336.45 -.26%

Futures Spot Prices
Crude Oil 63.39 +.03%
Unleaded Gasoline 173.70 -.01%
Natural Gas 9.33 unch.
Heating Oil 173.79 unch.
Gold 543.90 -.33%
Base Metals 158.06 +.29%
Copper 210.50 -.09%
10-year US Treasury Yield 4.42% +1.35%

Leading Sectors
Oil Service +2.10%
Disk Drives +1.89%
Computer Hardware +1.33%

Lagging Sectors
Airlines -1.32%
Broadcasting -1.88%
Hospitals -2.55%

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 Outperform on (ALL), (DNA), (HD) and (CRL).

Afternoon/Evening Headlines
Bloomberg:
- Biogen Idex(BIIB) said its Tysabri multiple sclerosis medicine, suspended in 2005 after being linked to an often fatal nervous system disease, may return to the market this year.
- Genentech(DNA) said quarterly profit jumped 64% on higher cancer-drug sales.

CNBC:
- Gannett Co.(GCI) made a bid for Knight Ridder(KRI) and then withdrew it.

Chronicle of Higher Education:
- A Florida International University professor and his wife were accused in a US government indictment of spying for Cuba.

Hollywood Reporter:
- Walt Disney’s(DIS) ABC television is charging a record $2.5 million on average for each 30-second advertisement during Super Bowl XL.

Sun Herald:
- Harrah’s Entertainment(HET) will spend more than $1 billion to build two casinos in Biloxi, Mississippi, citing Mayor AJ Holloway.

Seoul Economic Daily:
- Japan isn’t considering diversifying its foreign exchange reserves.

Handelsblatt:
- BMW AG may expand further at its plant in Spartanburg, South Carolina, citing CEO Panke.
BOTTOM LINE: The Portfolio finished higher today on gains in my Computer longs, Semi longs, Medical longs and Retail longs. I did not trade today, thus leaving the Portfolio 100% net long. The tone of the market was modestly positive today as the advance/decline line finished higher, sector performance was mixed and volume was above average. Measures of investor anxiety were mixed into the close. Overall, today’s action was bullish considering long-term rates bounced, oil held steady, fears over Iran’s nuclear program rose and the DJIA closed above 11,000 again after a morning decline of 60 points. Ituran Location (ITRN), one of my recent small long additions, broke to a new high today on 4x average volume. This Israeli stock's performance is even more impressive considering recent Middle Eastern news events. I expect the stock to trade in the low $20s in a fairly short period of time as this recent IPO gets discovered.

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