Indices
S&P 500 1,541.57 +.49%
DJIA 13,943.42 +.67%
NASDAQ 2,690.58 +.11%
Russell 2000 835.62 -.10%
Wilshire 5000 15,514.96 +.36%
Russell 1000 Growth 617.46 +.48%
Russell 1000 Value 870.43 +.34%
Morgan Stanley Consumer 736.99 +.88%
Morgan Stanley Cyclical 1,110.34 +.04%
Morgan Stanley Technology 654.50 +.19%
Transports 5,367.0 +.13%
Utilities 514.60 +.54%
MSCI Emerging Markets 143.52 +1.54%
Sentiment/Internals
Total Put/Call .79 -35.77%
NYSE Arms .73 -66.14%
Volatility(VIX) 16.81 -.83%
ISE Sentiment 171.0 +29.55%
Futures Spot Prices
Crude Oil 75.06 -.96%
Reformulated Gasoline 210.75 -2.64%
Natural Gas 6.03 -6.4%
Heating Oil 206.0 -1.54%
Gold 682.0 -.39%
Base Metals 268.72 +.57%
Copper 364.90 -1.52%
Economy
10-year US Treasury Yield 4.95% +1 basis point
US Dollar 80.32 +.04%
CRB Index 319.09 -1.65%
Leading Sectors
Oil Service +2.32%
Telecom +1.55%
Restaurants +1.09%
Lagging Sectors
Coal -1.21%
Hospitals -2.23%
Homebuilders -2.28%
Evening Review
Market Performance Summary
WSJ Data Center
Sector Performance
ETF Performance
Style Performance
Commodity Movers
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Commentary
After-hours Movers
After-hours Stock Quote
In Play
Afternoon Recommendations
Oppenheimer:
- Rated (ROSG) Buy, target $11.
- Rated (HALO) Buy, target $14.
Afternoon/Evening Headlines
Bloomberg:
- Crude oil fell $.67/bbl. after Reuters reported that OPEC was concerned about high oil prices and their impact on the world economy.
- Corn futures fell in Chicago, extending their decline to an eight-month low, and soybeans dropped on speculation rains and a lack of severe heat will promote development of the two biggest US crops.
- Natural gas fell in NY to its lowest closing price since December as a combination of mild temperatures and high inventories served to undercut demand and push down prices.
- Texas Instruments(TXN) reported a 74% drop in second-quarter profit after the sale of a sensors business last year. The shares fell 3.6% in after-hours trading.
- Wal-Mart Stores(WMT) will reduce prices in the US on more than 16,000 back-to-school items as it works to reinforce its image as a discounter and lure back customers lost to Target Corp.(TGT).
- American Express(AXP) said second-quarter profit climbed 12% as customer spending and merchant fees increased. The stock fell $.97 to $63.69 in after-hours trading.
- NYC apartment prices climbed 16% in the second quarter as the country’s most expensive urban market sidestepped declines in the rest of the country.
- JDA Software(JDAS) reported total revenues of $90.8 million and software revenues of $18.6 million for second quarter 2007. This represents a 75% increase over the $51.8 million in total revenues and an 80% increase over the $10.4 million in software revenues reported for second quarter 2006. The shares soared 13% in after-hours trading.
- Treasury Secretary Paulson said today the US economy is at or near the bottom in the housing slump, that the consumer is strong, the subprime fallout is contained, a strong dollar is in the nation’s interest and the US economy is very healthy.
BOTTOM LINE: The Portfolio finished slightly higher today on gains in my Networking longs and Medical longs. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was neutral today as the advance/decline line finished slightly lower, sector performance was mostly positive and volume was above average. Measures of investor anxiety were about average into the close. Today's overall market action was mildly bullish. Corn fell another 2.6% today, which helped spur the Goldman Ag commodity index to a 1.15% decline. Corn has plunged 29% from its February highs and its 50-day moving average is breaking down through its 200-day moving average for the first time since October 2005. I continue to believe that inflation fears have already peaked for this cycle, and this will help keep the 10-year yield contained as the myth of problematic inflation is further dispelled. Barron's had an excellent cover story (subscription required to read entire article) over the weekend by Michael Santoli on the lack of participation by the "little guy" in U.S. stocks' recent bull run and records. I would also add that many hedge funds seem to be missing out on sharp gains as well. Tony Crescenzi highlighted today how the short base in the S&P futures continues to grow, which corresponds with SentimenTrader's COT All-Index Stochastic. Moreover, I recently pointed out the Greenwich Associates survey that showed hedge fund managers were only 12% bullish, the lowest reading since 2004. As I highlighted earlier this afternoon, I still think the parabolic rise in short interest matters greatly and is mainly a result of the massive inflow of capital into low-correlation U.S. stock strategies over the last few years. There are several other gauges of hedge fund sentiment registering some pessimism, as well. It is also interesting to note that the Yale Institutional Buy-On-Dips Index is the lowest since late 2000 after the bubble had already burst and stocks were crashing. Also, more financial advisors were recently predicting a correction in U.S. stocks than at any other time in almost a decade, according to Investors Intelligence. The only place I see some relatively normal levels of sentiment given recent gains is the long-only institutional investor, which don’t account for nearly as much of daily trading as they used to. I still believe overall investor sentiment regarding U.S. stocks has never been worse in history with the DJIA materially advancing and soaring to new records.
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