Monday, March 12, 2007

Stocks Finish Higher on Buyouts, Lower Energy Prices

S&P 500 1,406.60 +.27%
DJIA 12,318.62 +.34%
NASDAQ 2,402.29 +.62%
Russell 2000 789.00 +.49%
Wilshire 5000 14,196.82 +.30%
Russell 1000 Growth 555.55 +.40%
Russell 1000 Value 810.73 +.17%
Morgan Stanley Consumer 695.08 +.24%
Morgan Stanley Cyclical 943.70 +.28%
Morgan Stanley Technology 559.79 +.53%
Transports 4,855.23 +.51%
Utilities 481.02 +1.01%
MSCI Emerging Markets 112.81 +.94%

Total Put/Call 1.04 -9.57%
NYSE Arms 1.28 +10.60%
Volatility(VIX) 13.99 -.71%
ISE Sentiment 105.0 +54.41%

Futures Spot Prices
Crude Oil 58.90 –1.92%
Reformulated Gasoline 191.28 +.56%
Natural Gas 6.92 -2.30%
Heating Oil 168.45 -1.62%
Gold 651.40 -.11%
Base Metals 239.0 +.98%
Copper 284.80 +2.45%

10-year US Treasury Yield 4.55% - 4 basis points
US Dollar 83.84 -.47%
CRB Index 306.35 -.56%

Leading Sectors
HMOs +2.61%
Retail +1.42%
Airlines +1.28%

Lagging Sectors
Steel -.31%
Energy -.39%
Homebuilders -2.19%

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
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
- None of note

Afternoon/Evening Headlines
- Venezuelan President Hugo Chavez vowed to press Brazilian counterpart Luiz Inacio Lula da Silva to review an ethanol-development accord the Brazilian leader signed with US President Bush last week. Chavez warned that relying on ethanol instead of oil for energy poses technical and “ethical” challenges.
- Nymex Holdings(NMX), owner of the world’s largest energy market, plans to offer to sell 7 million shares in a secondary offering.
- Crude oil fell $1.14/bbl. to $58.91/bbl. on news that Russia would delay the construction of Iran’s first nuclear reactor indefinitely, milder weather, signs that OPEC won’t cut output further and speculation that demand from China is waning.
- Boeing(BA) won orders for passenger and cargo jets valued at about $4.6 billion.
- Texas Instruments(TXN) said first-quarter sales and earnings won’t reach its highest earlier forecasts. The stock fell .54 to $32.05 after hours.
- Jo-Ann Stores(JAS) said fourth quarter earnings exceeded forecasts and raised 2008 guidance. The stock soared 8% after hour.

NY Post:
-, News Corp.’s(NWS) social-networking Web site, plans to start a news service that will let users comment on and rate stories they post on their personal pages.

- Russia said it will delay construction of Iran’s first nuclear reactor indefinitely after the Middle Eastern country missed payments on the $1 billion contract.

BOTTOM LINE: The Portfolio finished higher today on gains in my Retail longs, Computer longs, Telecom longs and Semi longs. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was positive today as the advance/decline line finished higher, almost every sector gained and volume was about average. Measures of investor anxiety were above average into the close. Today's overall market action was modestly bullish. Steel stocks came under pressure in the last hour right after the release of the U.S. raw steel production data, however, I'm not sure how much this had to do with the group’s high-volume reversal lower. Considering that the Philadelphia Stock Exchange SIG Steel Producers Index (STQ) is 23.5% higher year-to-date, mostly on buyout speculation, a correction in the group has likely begun. I expect the major averages to build on today's gains tomorrow, led by the brokers.

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