Bloomberg:
- One of the al-Qaeda cells arrested early today in Spain may have been planning an attack in Europe, Spanish Interior Minister Jose Antonio Alonso said.
- Whole Foods Market(WFMI) made the nation’s largest ever corporate purchase of renewable energy credits to promote use of non-polluting electricity sources.
- GM(GM) said it will cut the prices on about 80% of its cars and trucks.
- Alberto-Culver(ACV) will spin-off its chain of more than 3,200 beauty-supply stores and sell it to Regis Corp.(RGS) in a $2.6 billion transaction.
- Apple Computer’s(AAPL) first quarter revenue reached $5.7 billion, more than the company expected, as iPod sales tripled and Macintosh computer purchases topped 1 million units for the fifth straight period.
- The Bush administration warned Iran that its decision to resume research on uranium reprocessing may lead to action against the country at the UN Security Council.
Wall Street Journal:
- Proposed changes in executive-pay disclosure regulations by the SEC would lower the point at which companies need to disclose perquisites.
- DaimlerChrysler’s(DCX) Chrysler unit plans to reproduce the Dodge Challenger as part of a bid to attract buyers with new versions of favorite old cars.
- Ford Motor(F) and General Motors(GM) have begun marketing so-called flex-fuel vehicles that run on a mix of ethanol and gasoline.
- Growth of public and private US health-care expenditures rose 7.9% in 2004, the smallest increase since 2000.
- IBM(IBM), the top US patent holder for the past 13 years, will lead a group seeking to raise the quality of US patents by weeding out duplicate items.
- Toyota Motor(TM) may install a switch in its gasoline and electric-powered hybrid cars enabling drivers to select “green” or “power,” thus improving fuel-efficiency.
Deal.com:
- The US Dept. of Justice may sue to block Whirlpool’s planned $1.4 billion acquisition of Maytag.
NY Times:
- Many US companies are developing products to help customers with credit cards to reduce time spent paying highway tolls.
- Apple Computer(AAPL) plans to begin offering today a limited number of “Saturday Night Live” skits for download from its iTunes store for $1.99 each.
- News Corp.(NWS) Chairman Murdoch said his plan to make the Internet portal MySpace.com into a competitor for Yahoo!(YHOO) is aimed at increasing the time users spend on the site and at boosting advertising.
AP:
- New Jersey legislators halted executions until a 13-member commission evaluates the costs and fairness of the death penalty.
AFP:
- Iran said today it removed seals on its nuclear research centers to prepare for the resumption of work on the nuclear fuel cycle.
Reuters:
- China is unlikely to reduce the US dollar holdings its foreign-exchange reserves to increase the proportion of other assets, citing Tang Xu, head of the research bureau under the central bank.
Xinhua:
- China’s steel output rose to 348 million metric tons last year.
Il Sole/24:
- De Agostini SpA, an Italian publishing and insurance company, and its partners are seeking to buy Gtech Holdings(GTK), the world’s biggest seller of computerized lottery systems.
Tuesday, January 10, 2006
Wholesale Inventories Rise Less Than Estimates
- Wholesale Inventories for November rose .4% versus estimates of a .5% increase and a .2% gain in October.
BOTTOM LINE: Inventories at US wholesalers rose .4% in November as companies accelerated their restocking efforts after hurricane-related supply disruptions, Bloomberg reported. Sales feel .7% due mainly to a decline in the value of petroleum purchases. The inventory-to-sales ratio increased to 1.15 months from 1.14 the month before. I continue to believe inventory rebuilding will add to US growth over the intermediate-term on increasing business confidence and stable demand.
Tuesday Watch
Late-Night Headlines
Bloomberg:
- Top-ranked golfer Tiger Woods earned almost $87 million last year and should become the sport’s first billionaire by 2010, according to a study by Golf Digest.
- An improvised bomb was found in a Starbucks(SBUX) coffee shop in San Francisco. The bomb was safely detonated today by city police.
- Geely Automobile Holdings Ltd. became the first Chinese automaker to display vehicles at the Detroit auto show, part of an effort to drum up publicity for its plan to sell a $10,000 car in the US.
- South Korean scientist Hwang Woo Suk faked both his first and second papers on human stem-cell research, dashing hopes that his work is a breakthrough in treatments for diabetes and Parkinson’s disease.
Financial Times:
- Kirk Kerkorian adviser Jerry York will urge (GM) to reduce its dividend, citing people familiar with the move.
Yonhap News:
- North Korean leader Kim Jong Il is visiting China.
Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on (TXN), (IDIX), (TRI) and (BSX).
- Reiterated Underperform on (ECL) and (PETM).
Night Trading
Asian Indices are -.75% to +.25% on average.
S&P 500 indicated -.25%.
NASDAQ 100 indicated -.28%.
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
(DNA).34
(SVU).50
(USM).38
(OXM).61
Upcoming Splits
(CERN) 2-for-1
Economic Releases
10:00 am EST
- Wholesale Inventories for November are estimated to rise .5% versus a .2% increase in October,
Bloomberg:
- Top-ranked golfer Tiger Woods earned almost $87 million last year and should become the sport’s first billionaire by 2010, according to a study by Golf Digest.
- An improvised bomb was found in a Starbucks(SBUX) coffee shop in San Francisco. The bomb was safely detonated today by city police.
- Geely Automobile Holdings Ltd. became the first Chinese automaker to display vehicles at the Detroit auto show, part of an effort to drum up publicity for its plan to sell a $10,000 car in the US.
- South Korean scientist Hwang Woo Suk faked both his first and second papers on human stem-cell research, dashing hopes that his work is a breakthrough in treatments for diabetes and Parkinson’s disease.
Financial Times:
- Kirk Kerkorian adviser Jerry York will urge (GM) to reduce its dividend, citing people familiar with the move.
Yonhap News:
- North Korean leader Kim Jong Il is visiting China.
Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on (TXN), (IDIX), (TRI) and (BSX).
- Reiterated Underperform on (ECL) and (PETM).
Night Trading
Asian Indices are -.75% to +.25% on average.
S&P 500 indicated -.25%.
NASDAQ 100 indicated -.28%.
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
(DNA).34
(SVU).50
(USM).38
(OXM).61
Upcoming Splits
(CERN) 2-for-1
Economic Releases
10:00 am EST
- Wholesale Inventories for November are estimated to rise .5% versus a .2% increase in October,
BOTTOM LINE: Asian indices are mostly lower on profit-taking after recent gains. I expect US equities to open mixed and to rally modestly into the afternoon. The Portfolio is 100% net long heading into the day.
Monday, January 09, 2006
Stocks Finish Higher as Dow Jones Breaks 11,000 on Declining Energy Prices
Indices
S&P 500 1,290.15 +.37%
DJIA 11,011.90 +.48%
NASDAQ 2,318.69 +.57%
Russell 2000 706.24 +.98%
DJ Wilshire 5000 n/a
S&P Barra Growth 617.53 +.36%
S&P Barra Value 668.13 +.37%
Morgan Stanley Consumer 604.86 +.79%
Morgan Stanley Cyclical 814.43 +.78%
Morgan Stanley Technology 553.11 -.03%
Transports 4,238.34 +.57%
Utilities 413.21 -.47%
Put/Call .68 +4.62%
NYSE Arms 1.07 +25.25%
Volatility(VIX) 11.13 +1.18%
ISE Sentiment 190.00 +23.38%
US Dollar 89.24 +.36%
CRB 337.33 -.63%
Futures Spot Prices
Crude Oil 63.42 -.13%
Unleaded Gasoline 176.15 -.35%
Natural Gas 9.51 +1.62%
Heating Oil 176.00 -.44%
Gold 550.50 unch.
Base Metals 157.61 +1.26%
Copper 210.10 +.19%
10-year US Treasury Yield 4.37% -.14%
Leading Sectors
Homebuilders +3.48%
Disk Drives +2.85%
Biotech +1.79%
Lagging Sectors
Oil Tankers -.68%
Coal -.69%
HMOs -1.20%
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:
- None of note
Afternoon/Evening Headlines
Bloomberg:
- The Dow Jones Industrial Average climbed above 11,000 for the first time in more than four years, as a slide in oil prices helped extend a 2006 rally in stocks.
- Intel Corp.(INTC) urged the US Supreme Court to consider Research In Motion’s(RIMM) appeal of a patent-infringement finding against its BlackBerry e-mail devices, saying the case “cries out for clarification.”
- Federal Reserve policy makers are scaling back guidance on future interest-rate decisions because they don’t know the “full economic effect” of the 13 increases since June 2004, Atlanta Fed President Jack Guynn said.
Financial Times:
- News Corp.(NWS) forecasts a surge in the revenue of the media company’s Internet businesses, citing Chairman Rupert Murdoch.
- A record 20 million music tracks were downloaded in the US from the Internet in the week ended Dec. 31 after a rise in the number of MP3 players sold in 2005, citing Neilson SoundScan.
S&P 500 1,290.15 +.37%
DJIA 11,011.90 +.48%
NASDAQ 2,318.69 +.57%
Russell 2000 706.24 +.98%
DJ Wilshire 5000 n/a
S&P Barra Growth 617.53 +.36%
S&P Barra Value 668.13 +.37%
Morgan Stanley Consumer 604.86 +.79%
Morgan Stanley Cyclical 814.43 +.78%
Morgan Stanley Technology 553.11 -.03%
Transports 4,238.34 +.57%
Utilities 413.21 -.47%
Put/Call .68 +4.62%
NYSE Arms 1.07 +25.25%
Volatility(VIX) 11.13 +1.18%
ISE Sentiment 190.00 +23.38%
US Dollar 89.24 +.36%
CRB 337.33 -.63%
Futures Spot Prices
Crude Oil 63.42 -.13%
Unleaded Gasoline 176.15 -.35%
Natural Gas 9.51 +1.62%
Heating Oil 176.00 -.44%
Gold 550.50 unch.
Base Metals 157.61 +1.26%
Copper 210.10 +.19%
10-year US Treasury Yield 4.37% -.14%
Leading Sectors
Homebuilders +3.48%
Disk Drives +2.85%
Biotech +1.79%
Lagging Sectors
Oil Tankers -.68%
Coal -.69%
HMOs -1.20%
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:
- None of note
Afternoon/Evening Headlines
Bloomberg:
- The Dow Jones Industrial Average climbed above 11,000 for the first time in more than four years, as a slide in oil prices helped extend a 2006 rally in stocks.
- Intel Corp.(INTC) urged the US Supreme Court to consider Research In Motion’s(RIMM) appeal of a patent-infringement finding against its BlackBerry e-mail devices, saying the case “cries out for clarification.”
- Federal Reserve policy makers are scaling back guidance on future interest-rate decisions because they don’t know the “full economic effect” of the 13 increases since June 2004, Atlanta Fed President Jack Guynn said.
Financial Times:
- News Corp.(NWS) forecasts a surge in the revenue of the media company’s Internet businesses, citing Chairman Rupert Murdoch.
- A record 20 million music tracks were downloaded in the US from the Internet in the week ended Dec. 31 after a rise in the number of MP3 players sold in 2005, citing Neilson SoundScan.
BOTTOM LINE: The Portfolio finished higher today on gains in my Semi longs, Medical longs and Biotech longs. I did not trade today, thus leaving the Portfolio 100% net long. The tone of the market was positive today as the advance/decline line finished higher, most sectors rose and volume was above average. Measures of investor anxiety were mostly higher into the close. Overall, today’s action was bullish considering the DJIA finally closed above 11,000 and consumer credit came in below expectations. These are the types of days that you want to see if you are bullish. Slow, grinding higher action, with the bears repeatedly sucked in. It still looks like stocks can head higher short-term before any real consolidation occurs.
Today's Headlines
Bloomberg:
- General Motors(GM) is “moving pretty fast” with its plan to sell a controlling stake in its finance unit.
- Vice President Cheney was taken to the George Washington Hospital early today experiencing shortness of breath.
- Israeli Prime Minister Sharon began breathing without a ventilator as doctors brought him out of a coma that was medically induced after he suffered a massive brain hemorrhage on Jan.4.
- General Motors(GM) will cut 2006 losses “significantly,” said CEO Rick Wagoner.
- Texas Instruments(TXN) agreed to sell its sensors and controls business to Bain Capital LLC for $3 billion as the company focuses on the faster-growing handset market.
- Crude oil is falling from a three-month high on speculation that heating-fuel consumption will plunge as higher-than-normal temperatures linger over the US.
Wall Street Journal:
- Bank of America(BAC) and PNC Financial Services(PNC) have received approval from US regulators to develop large hotel and office properties, a ruling that could let banks become more active investors in commercial real estate.
- Toyota Motor(TM) may build an engine plant in Michigan, possibly to help ward off criticism over its growing profit in the US.
- Playing songs backward in the US has begun to attract a cult following as new electronic software and Internet sites allow music lovers to hear supposed hidden messages in the lyrics.
- The discovery of statins used to lower cholesterol has sparked a return to research for drugs derived from plants and other natural organisms.
- Brazil’s offshore oil discoveries, coupled with rising production of ethanol, may make the South American nation energy-independent this year.
- Technology companies may be poised for a comeback in the number of IPOs in the US this year, as young companies gain experience.
- Clear Channel Communications(CCU) will allow people to get free music videos from its radio-station Web site, starting today, if they watch a 15-second ad.
- Starwood Hotels(HOT) and Yahoo Inc.(YHOO) said they will begin testing Yahoo Internet lounges in two Sheraton hotels today.
- Tyco’s(TYC) board meets this week to approve a plan that could break up the company, undoing the $60 billion business built up by former CEO Kozlowski.
Chronicle of Higher Education:
- State spending for higher education in the US rose 5.3% to $66.6 billion in the 2005-06 school year, the fastest rate in five years.
NY Times:
- Duke Energy(DUK) is near an agreement to sell its North American power-generation business to LS Power Group, an investment firm, for $1.5 billion.
- About 12.5% of New Yorkers have diabetes, a proportion that exceeds that in the US as a whole by almost a third.
Advertising Age:
- The NFL, citing risqué marketing, won’t renew its $18 million sponsorship agreement with the marketers of Levitra and is distancing itself from other drugs that treat male impotence.
- General Motors(GM) is “moving pretty fast” with its plan to sell a controlling stake in its finance unit.
- Vice President Cheney was taken to the George Washington Hospital early today experiencing shortness of breath.
- Israeli Prime Minister Sharon began breathing without a ventilator as doctors brought him out of a coma that was medically induced after he suffered a massive brain hemorrhage on Jan.4.
- General Motors(GM) will cut 2006 losses “significantly,” said CEO Rick Wagoner.
- Texas Instruments(TXN) agreed to sell its sensors and controls business to Bain Capital LLC for $3 billion as the company focuses on the faster-growing handset market.
- Crude oil is falling from a three-month high on speculation that heating-fuel consumption will plunge as higher-than-normal temperatures linger over the US.
Wall Street Journal:
- Bank of America(BAC) and PNC Financial Services(PNC) have received approval from US regulators to develop large hotel and office properties, a ruling that could let banks become more active investors in commercial real estate.
- Toyota Motor(TM) may build an engine plant in Michigan, possibly to help ward off criticism over its growing profit in the US.
- Playing songs backward in the US has begun to attract a cult following as new electronic software and Internet sites allow music lovers to hear supposed hidden messages in the lyrics.
- The discovery of statins used to lower cholesterol has sparked a return to research for drugs derived from plants and other natural organisms.
- Brazil’s offshore oil discoveries, coupled with rising production of ethanol, may make the South American nation energy-independent this year.
- Technology companies may be poised for a comeback in the number of IPOs in the US this year, as young companies gain experience.
- Clear Channel Communications(CCU) will allow people to get free music videos from its radio-station Web site, starting today, if they watch a 15-second ad.
- Starwood Hotels(HOT) and Yahoo Inc.(YHOO) said they will begin testing Yahoo Internet lounges in two Sheraton hotels today.
- Tyco’s(TYC) board meets this week to approve a plan that could break up the company, undoing the $60 billion business built up by former CEO Kozlowski.
Chronicle of Higher Education:
- State spending for higher education in the US rose 5.3% to $66.6 billion in the 2005-06 school year, the fastest rate in five years.
NY Times:
- Duke Energy(DUK) is near an agreement to sell its North American power-generation business to LS Power Group, an investment firm, for $1.5 billion.
- About 12.5% of New Yorkers have diabetes, a proportion that exceeds that in the US as a whole by almost a third.
Advertising Age:
- The NFL, citing risqué marketing, won’t renew its $18 million sponsorship agreement with the marketers of Levitra and is distancing itself from other drugs that treat male impotence.
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