I am unable to post the Wednesday Close due to a scheduling conflict. However, I will post the Thursday Watch late this evening. I finished the day 25% net long by taking profits in a few of my QQQQ and IWM shorts.
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
Wednesday, October 12, 2005
Stocks Lower Mid-day on Earnings Jitters
Indices
S&P 500 1,179.15 -.48%
DJIA 10,227.63 -.25%
NASDAQ 2,042.21 -.92%
Russell 2000 622.62 -1.18%
DJ Wilshire 5000 11,742.10 -.64%
S&P Barra Growth 566.84 -.36%
S&P Barra Value 608.15 -.62%
Morgan Stanley Consumer 574.46 -.12%
Morgan Stanley Cyclical 684.91 -.70%
Morgan Stanley Technology 486.80 -.17%
Transports 3,622.93 -1.76%
Utilities 401.90 -1.56%
Put/Call 1.20 +8.11%
NYSE Arms .69 -36.37%
Volatility(VIX) 15.83 +1.28%
ISE Sentiment 164.00 +24.24%
US Dollar 89.63 -.38%
CRB 332.01 +.47%
Futures Spot Prices
Crude Oil 64.50 +1.68%
Unleaded Gasoline 183.80 +.26%
Natural Gas 13.61 +.67%
Heating Oil 202.00 -.14%
Gold 475.00 -1.0%
Base Metals 134.17 -.30%
Copper 179.30 -2.29%
10-year US Treasury Yield 4.44% +1.09%
Leading Sectors %
Drugs +.58%
Defense +.01%
Telecom -.16%
Lagging Sectors
I-Banks -2.35%
Steel -2.52%
Oil Tankers -2.65%
S&P 500 1,179.15 -.48%
DJIA 10,227.63 -.25%
NASDAQ 2,042.21 -.92%
Russell 2000 622.62 -1.18%
DJ Wilshire 5000 11,742.10 -.64%
S&P Barra Growth 566.84 -.36%
S&P Barra Value 608.15 -.62%
Morgan Stanley Consumer 574.46 -.12%
Morgan Stanley Cyclical 684.91 -.70%
Morgan Stanley Technology 486.80 -.17%
Transports 3,622.93 -1.76%
Utilities 401.90 -1.56%
Put/Call 1.20 +8.11%
NYSE Arms .69 -36.37%
Volatility(VIX) 15.83 +1.28%
ISE Sentiment 164.00 +24.24%
US Dollar 89.63 -.38%
CRB 332.01 +.47%
Futures Spot Prices
Crude Oil 64.50 +1.68%
Unleaded Gasoline 183.80 +.26%
Natural Gas 13.61 +.67%
Heating Oil 202.00 -.14%
Gold 475.00 -1.0%
Base Metals 134.17 -.30%
Copper 179.30 -2.29%
10-year US Treasury Yield 4.44% +1.09%
Leading Sectors %
Drugs +.58%
Defense +.01%
Telecom -.16%
Lagging Sectors
I-Banks -2.35%
Steel -2.52%
Oil Tankers -2.65%
BOTTOM LINE: The Portfolio is unchanged mid-day as gains in my ETF shorts, Steel shorts and Energy shorts are offsetting losses in my Technology longs, Retail longs and Medical longs. I added to my IWM and QQQQ shorts this morning, thus leaving the Portfolio market neutral. The tone of the market is negative as the advance/decline line is substantially lower, almost every sector is lower and volume is heavy. Measures of investor anxiety are mixed. Today’s overall market action is negative given recent market losses. While the major averages are getting very oversold short-term and could bounce at any time, I am still not seeing much evidence that a rally will occur today. This is the first time in awhile that oil has moved up close to a $1/bbl. and energy-related stocks are falling across the board. I expect US stocks to trade mixed-to-lower from current levels into the close on increasing earnings worries.
Today's Headlines
Bloomberg:
- Federal Reserve Chairman Greenspan said the US economy has “weathered reasonably well the steep rise” in energy prices thanks to market-driven incentives and “flexibility.”
- Microsoft and Yahoo! will let their users instant message each other for the first time, challenging AOL’s dominance of Instant Messeging.
- Research in Motion may have to pay $550 million more than it has set aside to settle claims that its BlackBerry e-mail device infringes another company’s patents.
- Crude oil is rising on speculation that demand may rebound next year from the effects of the hurricanes.
Wall Street Journal:
- The earthquake that hit the Kashmir area of Pakistan and India may have been very costly for Islamic extremists who oppose the US, citing militant groups.
- News that Refco’s CEO secretly owed the company $430 million raises questions about the thoroughness of the auditors and banks that oversaw the IPO nine weeks ago.
- US auto dealers say their sales have dropped sharply this month and they want Ford Motor, Chrysler and GM to boost incentives.
- There are signs that recent steel price increases may slow or start falling.
- RealNetworks may use the $761 billion it will be paid by Microsoft in an antitrust settlement to boost its presence in online music and games.
Boston Globe:
- MIT is founding an international association of research universities to develop nanotechnology for health and medical research.
Lloyd’s List:
- The global oil and gas industry wastes some 2.1 million barrels, worth more than $100 million, every day because many producers aren’t using oil-water separation technology.
Petroleum Intelligence Weekly:
- Saudi Arabia may bring the offshore Manifa oilfield, capable of pumping 1 million barrels a day, back into production as part of plans to boost output capacity after 2009.
Financial Times:
- Phillip Bennett, the suspended CEO of Refco, may have used a hedge fund to disguise the fact that he owed the futures broker $430 million.
Al-Hayat:
- Iran shut two offshore oilfields operated by Royal Dutch Shell Plc because the country was finding it difficult to find buyers of the heavy crude the fields produce.
- Federal Reserve Chairman Greenspan said the US economy has “weathered reasonably well the steep rise” in energy prices thanks to market-driven incentives and “flexibility.”
- Microsoft and Yahoo! will let their users instant message each other for the first time, challenging AOL’s dominance of Instant Messeging.
- Research in Motion may have to pay $550 million more than it has set aside to settle claims that its BlackBerry e-mail device infringes another company’s patents.
- Crude oil is rising on speculation that demand may rebound next year from the effects of the hurricanes.
Wall Street Journal:
- The earthquake that hit the Kashmir area of Pakistan and India may have been very costly for Islamic extremists who oppose the US, citing militant groups.
- News that Refco’s CEO secretly owed the company $430 million raises questions about the thoroughness of the auditors and banks that oversaw the IPO nine weeks ago.
- US auto dealers say their sales have dropped sharply this month and they want Ford Motor, Chrysler and GM to boost incentives.
- There are signs that recent steel price increases may slow or start falling.
- RealNetworks may use the $761 billion it will be paid by Microsoft in an antitrust settlement to boost its presence in online music and games.
Boston Globe:
- MIT is founding an international association of research universities to develop nanotechnology for health and medical research.
Lloyd’s List:
- The global oil and gas industry wastes some 2.1 million barrels, worth more than $100 million, every day because many producers aren’t using oil-water separation technology.
Petroleum Intelligence Weekly:
- Saudi Arabia may bring the offshore Manifa oilfield, capable of pumping 1 million barrels a day, back into production as part of plans to boost output capacity after 2009.
Financial Times:
- Phillip Bennett, the suspended CEO of Refco, may have used a hedge fund to disguise the fact that he owed the futures broker $430 million.
Al-Hayat:
- Iran shut two offshore oilfields operated by Royal Dutch Shell Plc because the country was finding it difficult to find buyers of the heavy crude the fields produce.
Wednesday Watch
Late-Night Headlines
Bloomberg:
- Norwegian billionaires John Fredriksen and Kjell Inge Roekke are racing to build some of the world’s largest oil rigs, with decks the size of soccer fields. The new rigs, costing as much as $600 million each, may turn the boom to bust, says Kristoffer Stensrud, chief investment officer at Stavanger Fondsforvaltning. “It resembles the situation we saw in the Internet industry,” says Stensrud, who oversees the equivalent of $4.8 billion in stocks and bonds, including shares of Fredriksen’s rig unit SeaDrill Ltd. “We are near a point where the market is entering an irresponsible phase. Some of the deals have maximum project, shipyard and organizational risk,” he says.
- Pakistan needs more help for relief and recovery after the biggest earthquake in a century in the north, Prime Minister Shaukat Aziz said. The official death toll from the 7.6 magnitude earthquake on Oct. 8 is 23,000 and 50,000 injured.
Wall Street Journal:
- Microsoft and Yahoo! will allow their customers using instant messaging and other services to communicate directly with each other.
AP:
- Ahmed Omar Abu Ali, a US citizen accused of plotting with al-Qaeda terrorists to assassinate President Bush, confessed in 2003 and said he was motivated by US support for Israel, citing a videotape.
Securities Times:
- China’s inflation rate probably slowed to less than 1% in September.
Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on GOOG, YHOO, SAY and EBAY.
- Reiterated Underperform on CNA and BIDU.
Night Trading
Asian Indices are -.50% to unch. on average.
S&P 500 indicated -.13%.
NASDAQ 100 indicated -.29%.
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
APOL/.65
FAST/.57
HDI/.90
LRCX/.30
MON/-.51
Upcoming Splits
BOOM 2-for-1
Economic Releases
- None of note
Bloomberg:
- Norwegian billionaires John Fredriksen and Kjell Inge Roekke are racing to build some of the world’s largest oil rigs, with decks the size of soccer fields. The new rigs, costing as much as $600 million each, may turn the boom to bust, says Kristoffer Stensrud, chief investment officer at Stavanger Fondsforvaltning. “It resembles the situation we saw in the Internet industry,” says Stensrud, who oversees the equivalent of $4.8 billion in stocks and bonds, including shares of Fredriksen’s rig unit SeaDrill Ltd. “We are near a point where the market is entering an irresponsible phase. Some of the deals have maximum project, shipyard and organizational risk,” he says.
- Pakistan needs more help for relief and recovery after the biggest earthquake in a century in the north, Prime Minister Shaukat Aziz said. The official death toll from the 7.6 magnitude earthquake on Oct. 8 is 23,000 and 50,000 injured.
Wall Street Journal:
- Microsoft and Yahoo! will allow their customers using instant messaging and other services to communicate directly with each other.
AP:
- Ahmed Omar Abu Ali, a US citizen accused of plotting with al-Qaeda terrorists to assassinate President Bush, confessed in 2003 and said he was motivated by US support for Israel, citing a videotape.
Securities Times:
- China’s inflation rate probably slowed to less than 1% in September.
Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on GOOG, YHOO, SAY and EBAY.
- Reiterated Underperform on CNA and BIDU.
Night Trading
Asian Indices are -.50% to unch. on average.
S&P 500 indicated -.13%.
NASDAQ 100 indicated -.29%.
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
APOL/.65
FAST/.57
HDI/.90
LRCX/.30
MON/-.51
Upcoming Splits
BOOM 2-for-1
Economic Releases
- None of note
BOTTOM LINE: Asian indices are mostly lower, spurred by losses in technology companies in the region. I expect US equities to open lower on weakness in technology shares. The Portfolio is 25% net long heading into the day.
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