BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Computer longs and Semi longs. I exited my (IWM) and (QQQQ) shorts today, thus leaving the Portfolio 100% net long. The tone of the market is very positive as the advance/decline line is substantially higher, almost every sector is rising and volume is heavy. Apple (AAPL) looks like it found support around the 200-day moving average. I expect the stock has bottomed and will trade substantially higher before year's end. I am still long (AAPL). One by one, the Nasdaq is getting its leadership back. I expect the index to substantially outperform during the second quarter. I expect US stocks to trade mixed into the close from current levels as short-covering offsets profit-taking.
Wednesday, March 29, 2006
Stocks Sharply Higher Into Final Hour, Led by Technology Shares
Today's Headlines
Bloomberg:
- Airline bonds are staging their biggest rally in nine years as demand for travel rises and carriers emerge from bankruptcy with less debt.
- Angola passed Saudi Arabia to become China’s top oil supplier in February.
- The US government raised fuel-economy standards for light trucks such as sport-utility vehicles an average 11% over four years starting in 2008 and for the first time included the biggest SUVs.
- Apple Computer(AAPL), which has sold more than 42.2 million iPod players since October 2001, released software that lets parents set the volume on the music devices to protect their children’s hearing.
Wall Street Journal:
- Citigroup(C) will start today Citibank Direct, an Internet bank offering online, high-yield savings accounts.
- The SEC said it expects to take action this year to stop late trading in mutual funds and will decide whether to make proposals stipulating the use of interactive data for corporate reports.
- Japan’s economy is getting new and more sustainable support from an increase in household spending, a shift that could have important implications for global trade.
- Southwest Air(LUV) may be one of the weaker prospects for investors hoping to profit from a rebound in the aviation business.
- GlaxoSmithKline Plc(GSK) and Colgate-Palmolive(CL) are among companies that are expected to present bids for Pfizer’s(PFE) consumer products unit in first-round auctions today.
- EBay(EBAY) plans today to contest a 19th-century Supreme Court ruling that infringement of a patent could lead to an injunction against using an invention even if the patent holder never did.
- Time Warner(TWX) is changing the way it manages publishing, to focus more on the Internet.
AP:
- A plan to expand a guest worker program for immigrants who want jobs in the US is a “bad idea,” AFL-CIO labor union President Sweeney said.
- The Bluetooth wireless telecom standard will adopt a new radio technology known as ultra-wideband, allowing it to accommodate high-definition video and files for digital music players.
- Airline bonds are staging their biggest rally in nine years as demand for travel rises and carriers emerge from bankruptcy with less debt.
- Angola passed Saudi Arabia to become China’s top oil supplier in February.
- The US government raised fuel-economy standards for light trucks such as sport-utility vehicles an average 11% over four years starting in 2008 and for the first time included the biggest SUVs.
- Apple Computer(AAPL), which has sold more than 42.2 million iPod players since October 2001, released software that lets parents set the volume on the music devices to protect their children’s hearing.
Wall Street Journal:
- Citigroup(C) will start today Citibank Direct, an Internet bank offering online, high-yield savings accounts.
- The SEC said it expects to take action this year to stop late trading in mutual funds and will decide whether to make proposals stipulating the use of interactive data for corporate reports.
- Japan’s economy is getting new and more sustainable support from an increase in household spending, a shift that could have important implications for global trade.
- Southwest Air(LUV) may be one of the weaker prospects for investors hoping to profit from a rebound in the aviation business.
- GlaxoSmithKline Plc(GSK) and Colgate-Palmolive(CL) are among companies that are expected to present bids for Pfizer’s(PFE) consumer products unit in first-round auctions today.
- EBay(EBAY) plans today to contest a 19th-century Supreme Court ruling that infringement of a patent could lead to an injunction against using an invention even if the patent holder never did.
- Time Warner(TWX) is changing the way it manages publishing, to focus more on the Internet.
AP:
- A plan to expand a guest worker program for immigrants who want jobs in the US is a “bad idea,” AFL-CIO labor union President Sweeney said.
- The Bluetooth wireless telecom standard will adopt a new radio technology known as ultra-wideband, allowing it to accommodate high-definition video and files for digital music players.
Oil Supplies Rise
- The EIA reported crude oil inventories rose 2,030,000 barrels vs. estimates of a 950,000 barrel increase. Gasoline supplies fell 5,337,000 barrels vs. estimates of a 1,450,000 barrel decline. Distillate inventories fell 2,500,00 barrels vs. estimates of a 1,250,000 barrel decline. Refinery utilization rose 0.32% vs. estimates of a 0.5% rise.
BOTTOM LINE: Overall, these numbers are bullish for the energy complex. Normally, I would expect traders to sell the news, but with the oil ETF coming next week, this is unlikely.
Tuesday, March 28, 2006
Wednesday Watch
Late-Night Headlines
Bloomberg:
- US Commerce Secretary Carlos Gutierrez called on China to crack down harder on copyright piracy and open its markets further to US products or risk a protectionist backlash that would hurt both economies.
Late Buy/Sell Recommendations
Citigroup:
- Downgraded (RDY) to Sell from Buy.
Night Trading
Asian Indices are unch. to +.75% on average.
S&P 500 indicated +.08%.
NASDAQ 100 indicated +.12%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
- (ARRO)/.29
- (RECN)/.28
- (RI)/.46
- (SCS)/.11
- (UTIW)/.23
Upcoming Splits
- (BUCY) 3-for-2
Economic Releases
10:30 am EST
- Bloomberg consensus estimates call for a weekly crude build of 950,000 barrels. Gasoline inventories are estimated to fall 1,450,000 barrels, and distillate supplies are expected to decrease by 1,250,000 barrels. Refinery utilization is expected to rise .50%.
Bloomberg:
- US Commerce Secretary Carlos Gutierrez called on China to crack down harder on copyright piracy and open its markets further to US products or risk a protectionist backlash that would hurt both economies.
Late Buy/Sell Recommendations
Citigroup:
- Downgraded (RDY) to Sell from Buy.
Night Trading
Asian Indices are unch. to +.75% on average.
S&P 500 indicated +.08%.
NASDAQ 100 indicated +.12%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
- (ARRO)/.29
- (RECN)/.28
- (RI)/.46
- (SCS)/.11
- (UTIW)/.23
Upcoming Splits
- (BUCY) 3-for-2
Economic Releases
10:30 am EST
- Bloomberg consensus estimates call for a weekly crude build of 950,000 barrels. Gasoline inventories are estimated to fall 1,450,000 barrels, and distillate supplies are expected to decrease by 1,250,000 barrels. Refinery utilization is expected to rise .50%.
BOTTOM LINE: Asian indices are higher, boosted by exporting shares in the region. I expect US equities to open mixed and to trade modestly lower into the afternoon. The Portfolio is 75% net long heading into the day.
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