BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Retail longs, Medical longs and Computer longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, most sectors are rising and volume is light. Oil is trading near session lows, down $1.07 to $69.19, notwithstanding the Iranian situation and the potential for hurricanes this month. Barring the formation of a new tropical storm over the holiday weekend, I suspect oil will test its major uptrend line around the 50-week moving-average at $66.30 next week. Overall, commodities continue to weaken. The CRB Index already broke its key uptrend a couple of weeks ago and is now making another weekly lower low. I normally pay some attention to technicals. However, given the fact that a large majority of commodity traders overwhelmingly use technical analysis I am more focused than usual on these key levels. I continue to believe the negative effects oil has had on the U.S. economy and stock market are vastly underestimated. An oil breakdown into the $50s would have hugely positive implications for the broad market. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, more economic optimism, declining energy prices and lower long-term rates.
Friday, September 01, 2006
Stocks Higher into Final Hour on Another Fall in Energy Prices and Rising Economic Optimism
Today's Headlines
Bloomberg:
- McDonald’s(MCD) said activist investor Bill Ackman plans to buy more than $793.8 million of McDonald’s shares.
- Crude oil is falling to a two-month low on less speculation for hurricane-related production disruptions and a declining fear premium.
- Gas prices across the US are likely to fall further this month as demand from motorists slows.
- Colorado State University hurricane forecasters trimmed the number of storms they expect to form in the Atlantic Ocean this year for a second time. They now expect 5 more hurricanes with two being major.
- Ford Motor(F) said US sales fell 12% in August as purchases of gas guzzling SUVs and trucks continued to decline.
Wall Street Journal:
- US retailers are part of a large increase in the number of approved retail projects in China after the government removed restrictions governing the entry of foreign firms.
- Immigration has become critical to maintaining population levels in many countries as birth rates decline worldwide, Gary S. Becker writes.
- Advanced Cell Technology’s report last week of success in creating stem cells without harming embryos has come under scrutiny over the accuracy of its statements.
NY Times:
- Shanghai high-school educators will reduce the emphasis on socialism and Mao Zedong in their history courses in an effort to prepare students better for current society.
- Starting pay at large NYC law firms has reached $145,000, after a California firm with NY offices boosted salaries for first-year associates.
Business Week:
- Scholastic Corp.(SCHL) could be a takeover target, citing Michael Metz of Oppenheimer.
Washington Post:
- Iraq television stations are broadcasting reality shows ranging from an “American Idol”-like talent contest to one inspired by “Extreme Makeover: Home Edition.”
NY Daily News:
- Fast Retailing, Japan’s biggest casual-clothing retailer, will use portable stores built into cargo containers to promote its first Uniqlo store in NY.
NY Post:
- The number of passengers using the NY area’s three major airports hit a record 50.6 million in the first six months of this year, citing Port Authority of NY and NJ.
Star-Ledger of Newark:
- Comcast(CMCSA), buoyed by sales of packages that bundle phone, video, and Internet services, expects to hire 552 new employees in NJ by year’s end.
Business Day:
- A Nigerian refinery that’s been out of production since militant attacks destroyed a pumping station is now importing crude oil from Iraq so it can resume operations.
USA Today:
- Golf courses across the country are being replaced by housing and other real estate projects, as land becomes more valuable and owners seek higher returns.
Financial Times:
- Ford Motor’s(F) Aston Martin sports-car unit may be sold for as much as $2 billion.
Reuters:
- BP Plc expects to restart production in the eastern section of its Alaskan Prudhoe Bay oil field as early as the end of this month.
Toronto Sun:
- A fictional-documentary, the “Death of a President,” that portrays the assassination of President Bush has drawn “outrage” in some circles.
AFP:
- Syrian President al-Assad agreed to deploy more border guards and set up a “liason mechanism” with the Lebanese army and UN troops to enforce a weapons embargo against Hezbollah.
- McDonald’s(MCD) said activist investor Bill Ackman plans to buy more than $793.8 million of McDonald’s shares.
- Crude oil is falling to a two-month low on less speculation for hurricane-related production disruptions and a declining fear premium.
- Gas prices across the US are likely to fall further this month as demand from motorists slows.
- Colorado State University hurricane forecasters trimmed the number of storms they expect to form in the Atlantic Ocean this year for a second time. They now expect 5 more hurricanes with two being major.
- Ford Motor(F) said US sales fell 12% in August as purchases of gas guzzling SUVs and trucks continued to decline.
Wall Street Journal:
- US retailers are part of a large increase in the number of approved retail projects in China after the government removed restrictions governing the entry of foreign firms.
- Immigration has become critical to maintaining population levels in many countries as birth rates decline worldwide, Gary S. Becker writes.
- Advanced Cell Technology’s report last week of success in creating stem cells without harming embryos has come under scrutiny over the accuracy of its statements.
NY Times:
- Shanghai high-school educators will reduce the emphasis on socialism and Mao Zedong in their history courses in an effort to prepare students better for current society.
- Starting pay at large NYC law firms has reached $145,000, after a California firm with NY offices boosted salaries for first-year associates.
Business Week:
- Scholastic Corp.(SCHL) could be a takeover target, citing Michael Metz of Oppenheimer.
Washington Post:
- Iraq television stations are broadcasting reality shows ranging from an “American Idol”-like talent contest to one inspired by “Extreme Makeover: Home Edition.”
NY Daily News:
- Fast Retailing, Japan’s biggest casual-clothing retailer, will use portable stores built into cargo containers to promote its first Uniqlo store in NY.
NY Post:
- The number of passengers using the NY area’s three major airports hit a record 50.6 million in the first six months of this year, citing Port Authority of NY and NJ.
Star-Ledger of Newark:
- Comcast(CMCSA), buoyed by sales of packages that bundle phone, video, and Internet services, expects to hire 552 new employees in NJ by year’s end.
Business Day:
- A Nigerian refinery that’s been out of production since militant attacks destroyed a pumping station is now importing crude oil from Iraq so it can resume operations.
USA Today:
- Golf courses across the country are being replaced by housing and other real estate projects, as land becomes more valuable and owners seek higher returns.
Financial Times:
- Ford Motor’s(F) Aston Martin sports-car unit may be sold for as much as $2 billion.
Reuters:
- BP Plc expects to restart production in the eastern section of its Alaskan Prudhoe Bay oil field as early as the end of this month.
Toronto Sun:
- A fictional-documentary, the “Death of a President,” that portrays the assassination of President Bush has drawn “outrage” in some circles.
AFP:
- Syrian President al-Assad agreed to deploy more border guards and set up a “liason mechanism” with the Lebanese army and UN troops to enforce a weapons embargo against Hezbollah.
Unemployment Falls Again, Consumer Confidence Rebounds Slightly, Residential Construction Slows, Manufacturing Healthy, Prices Paid Falls
- The Change in Non-farm Payrolls for August was 128K versus estimates of 125K and an upwardly revised 121K in July.
- The Change in Manufacturing Payrolls for August was -11K versus estimates of 0K and a downwardly revised -23K in July.
- Average Hourly Earnings for August rose .1% versus estimates of a .3% gain and an upwardly revised .5% increase in July.
- The Final Univ. of Mich. Consumer Confidence reading for August rose to 82.0 versus estimates of 79.0 and a prior forecast of 78.7.
- Construction Spending for July fell 1.2% versus estimates of a .1% decline and a .4% increase in June.
- ISM Manufacturing for August fell to 54.5 versus estimates of 54.5 and a reading of 54.7 in July.
- ISM Prices Paid for August fell to 73.0 versus estimates of 76.0 and a reading of 78.5 in July.
- Pending Home Sales for July fell 7.0% versus estimates of a 1.5% decline and unchanged in June.
- The Change in Manufacturing Payrolls for August was -11K versus estimates of 0K and a downwardly revised -23K in July.
- Average Hourly Earnings for August rose .1% versus estimates of a .3% gain and an upwardly revised .5% increase in July.
- The Final Univ. of Mich. Consumer Confidence reading for August rose to 82.0 versus estimates of 79.0 and a prior forecast of 78.7.
- Construction Spending for July fell 1.2% versus estimates of a .1% decline and a .4% increase in June.
- ISM Manufacturing for August fell to 54.5 versus estimates of 54.5 and a reading of 54.7 in July.
- ISM Prices Paid for August fell to 73.0 versus estimates of 76.0 and a reading of 78.5 in July.
- Pending Home Sales for July fell 7.0% versus estimates of a 1.5% decline and unchanged in June.
BOTTOM LINE: Job growth in the US picked up in August and the unemployment rate approached a five-year low, the latest in a string of reports to show the economy will avoid a sharp downturn, Bloomberg said. Employment in service-producing industries rose 118,000, boosted by a 60,000 job increase in education and heath service jobs. Builders add 17,000 jobs, the most since February, led by commercial construction. Average hourly earnings rose 3.9% year-over-year, the best in five years. Most economists believe the economy needs to create about 100,000 jobs a month to keep unemployment from rising. I continue to believe the job market will remain healthy over the intermediate-term without generating substantial unit labor cost increases.
Confidence among US consumers was higher than forecast in August as gas prices fell in the final two weeks of the month and incomes grew, Bloomberg said. The current conditions index, which is a gauge of Americans’ perceptions of their financial situation and whether they should buy big-ticket items rose to 103.8 versus a prior estimate of 100.8. Consumers’ inflation concerns eased in August as gas prices fell. I continue to believe consumer sentiment will make new cycle highs over the intermediate-term as stocks rise, energy prices fall, interest rates remain relatively low, inflation decelerates, housing stabilizes, the job market remains healthy and irrational pessimism lifts further.
US construction spending fell in July by the most since 2001 as the housing market weakened after five years of record sales, Bloomberg said. Private-non-residential construction surged 22% from last year as companies spent more on offices, healthy-care facilities and transportation projects. I expect construction to remain well-below recent levels, but commercial building to somewhat cushion the deceleration.
Growth in US manufacturing eased slightly last month, Bloomberg reported. The prices paid component of the index fell to 73.0 from 78.5 the prior month. The closing price of a barrel of oil fell below $70 for the first time in two months on Aug. 29 as production disruption speculation subsided. The new orders component of the index fell to 54.2 versus 56.1 in July. The employment component of the index rose to 54.0 versus a reading of 50.7 the prior month. I continue expect manufacturing to remain around average levels as companies gain confidence in the sustainability of the expansion, thus rebuilding near-record low inventories.
Contracts to buy previously owned homes in the US fell in July, Bloomberg reported. The decline should ensure the Fed remains on hold. Pending home sales fell 9% in the Midwest, 7.7% in the Northeast, 6.4% in the South and 5.5% in the West. The average 30-year mortgage rate has declined 32 basis points since July 21. As well, the homebuilding stocks(HGX Index) have begun ignoring negative data points, rising 8.7% since July 21. I continue to believe housing is in the process of slowing to more healthy sustainable levels. Home inventories should begin heading lower from current levels over the next few months.
Thursday, August 31, 2006
Friday Watch
Late-Night Headlines
Bloomberg:
- Texas Pacific Group and Hellman & Friedman LLC agreed to buy Intergraph Corp.(INGR) for $1.3 billion because of increasing demand for mapping software for homeland security, and oil and gas exploration.
- Chevron Corp.(CVX) is poised to overtake ExxonMobil(XOM) as one of the world’s top five liquefied natural gas producers within a decade when it overcomes environmental objections to a $10.4 billion project in Australia.
- Microsoft Corp.(MSFT) paid out performance bonuses totaling almost $1 billion in stock to 900 of its top employees.
- US Treasury Secretary Henry Paulson, in office seven weeks, is about to ease into the first task of his tenure: persuading China to increase the value of its currency.
- Goldman Sachs Group(GS) cut its forecasts for South Korea’s economic growth this year and next as cooling domestic demand curbs Asia’s third-largest economy.
- Sales of Eli Lilly’s(LLY) Cymbalta antidepressant climbed 92% in the second quarter and CEO Sidney Taurel expects “much more” growth as the drug is sold in more countries and approved to treat a wider range of illnesses.
- Bristol-Myers(BMY) and Sanofi-Aventis SA won a bid to stop generic-drug maker Apotex Inc. from selling its copies of the Plavix heart pill, the world’s second-biggest selling medicine.
- Asahi Tec Corp., a Japanese auto-parts maker controlled by Ripplewood Holdings LLC, may buy US component maker Metaldyne Corp. to help it expand in the world’s biggest auto market.
- Analog Devices(ADI) announced it has collaborated with Legend Silicon Corp., a leading supplier of silicon solutions for broadband wireless broadcasting, to accelerate the development of mobile TV receivers for China with the industry’s first digital TV standard-compliant receiver solution.
- Shares of Aluminum Corp. of China(ACH) fell as much as 4% after the world’s second-biggest alumina producer said it will cut the price of the raw material used to make aluminum for the second time in a month.
- Natural Gas is falling another 3.5% to cycle lows as speculators trim bets on production disruptions.
Wall Street Journal:
- Las Vegas Sands(LVS) plans to spend as much as $15 billion to build an island resort in southern China.
- Electronic Arts(ERTS) said buyers spent $100 million on the video game “Madden NFL 2007” in its first week on the market, an opening-week sales record for the title.
Business Week:
- Technology companies worldwide may see more merger activity as market conditions make the prospect of leveraged buyouts more appealing.
Financial Times:
- China will form industry negotiation groups to secure lower prices for commodities. China will establish the groups to make sure it has a bigger say in price talks for oil, copper and aluminum, citing Wei Jianguo, a vice minister at the Ministry of Commerce.
London-based Times:
- Goldman Sachs Group(GS) will seek to raise $1 billion from its employees to partly finance a $10 billion private equity fund.
Late Buy/Sell Recommendations
Lehman Brothers:
- Investors should reduce bets on how much the yen will gain against the dollar and euro this year on evidence Japan’s economic growth is slowing.
Citigroup:
- Reiterated Buy on (SBUX), target $40.
- After an unusually busy August, we anticipate events in September will provide additional fuel for the rally in semiconductor stocks. Factoring in the benefit of falling oil prices, the potential for a cessation of interest rate hikes, and solid back-to-school results thus far, we reiterate our stance that the SOXX is poised to reach 480-520.
Business Week:
- Shares of AMR Corp.(AMR), parent of American Airlines, could rise 68% in the next 12 months, citing Daniel McKenzie of CSFB.
Night Trading
Asian Indices are -.25% to +.25% on average.
S&P 500 indicated unch.
NASDAQ 100 indicated +.09%.
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
- (VIP)/.93
Upcoming Splits
- (CD) 1-for-10
- (CHAP) 2-for-1
Economic Releases
8:30 am EST
- The Change in Non-farm Payrolls for August is estimated at 125K versus 113K in July.
- The Change in Manufacturing Payrolls for August is estimated at 0K versus -15K in July.
- The Unemployment Rate for August is estimated to fall to 4.7% versus 4.8% in July.
- Average Hourly Earnings for August are estimated to rise .3% versus a .4% gain in July.
9:45 am EST
- The Final Univ. of Mich. Consumer Confidence reading for August is estimated to rise to 79.2 versus a prior estimate of 78.7.
10:00 am EST
- Construction Spending for July is estimated to fall .1% versus a .3% increase in June.
- ISM Manufacturing for August is estimated to fall to 54.5 versus a reading of 54.7 in July.
- Pending Home Sales for July are estimated to fall 1.5% versus a .4% gain in June.
Afternoon:
- Total Vehicle Sales for August are estimated to fall to 16.5M versus 17.2M in July.
- Domestic Vehicle Sales for August are estimated to fall to 12.8M versus 13.2M in July.
Bloomberg:
- Texas Pacific Group and Hellman & Friedman LLC agreed to buy Intergraph Corp.(INGR) for $1.3 billion because of increasing demand for mapping software for homeland security, and oil and gas exploration.
- Chevron Corp.(CVX) is poised to overtake ExxonMobil(XOM) as one of the world’s top five liquefied natural gas producers within a decade when it overcomes environmental objections to a $10.4 billion project in Australia.
- Microsoft Corp.(MSFT) paid out performance bonuses totaling almost $1 billion in stock to 900 of its top employees.
- US Treasury Secretary Henry Paulson, in office seven weeks, is about to ease into the first task of his tenure: persuading China to increase the value of its currency.
- Goldman Sachs Group(GS) cut its forecasts for South Korea’s economic growth this year and next as cooling domestic demand curbs Asia’s third-largest economy.
- Sales of Eli Lilly’s(LLY) Cymbalta antidepressant climbed 92% in the second quarter and CEO Sidney Taurel expects “much more” growth as the drug is sold in more countries and approved to treat a wider range of illnesses.
- Bristol-Myers(BMY) and Sanofi-Aventis SA won a bid to stop generic-drug maker Apotex Inc. from selling its copies of the Plavix heart pill, the world’s second-biggest selling medicine.
- Asahi Tec Corp., a Japanese auto-parts maker controlled by Ripplewood Holdings LLC, may buy US component maker Metaldyne Corp. to help it expand in the world’s biggest auto market.
- Analog Devices(ADI) announced it has collaborated with Legend Silicon Corp., a leading supplier of silicon solutions for broadband wireless broadcasting, to accelerate the development of mobile TV receivers for China with the industry’s first digital TV standard-compliant receiver solution.
- Shares of Aluminum Corp. of China(ACH) fell as much as 4% after the world’s second-biggest alumina producer said it will cut the price of the raw material used to make aluminum for the second time in a month.
- Natural Gas is falling another 3.5% to cycle lows as speculators trim bets on production disruptions.
Wall Street Journal:
- Las Vegas Sands(LVS) plans to spend as much as $15 billion to build an island resort in southern China.
- Electronic Arts(ERTS) said buyers spent $100 million on the video game “Madden NFL 2007” in its first week on the market, an opening-week sales record for the title.
Business Week:
- Technology companies worldwide may see more merger activity as market conditions make the prospect of leveraged buyouts more appealing.
Financial Times:
- China will form industry negotiation groups to secure lower prices for commodities. China will establish the groups to make sure it has a bigger say in price talks for oil, copper and aluminum, citing Wei Jianguo, a vice minister at the Ministry of Commerce.
London-based Times:
- Goldman Sachs Group(GS) will seek to raise $1 billion from its employees to partly finance a $10 billion private equity fund.
Late Buy/Sell Recommendations
Lehman Brothers:
- Investors should reduce bets on how much the yen will gain against the dollar and euro this year on evidence Japan’s economic growth is slowing.
Citigroup:
- Reiterated Buy on (SBUX), target $40.
- After an unusually busy August, we anticipate events in September will provide additional fuel for the rally in semiconductor stocks. Factoring in the benefit of falling oil prices, the potential for a cessation of interest rate hikes, and solid back-to-school results thus far, we reiterate our stance that the SOXX is poised to reach 480-520.
Business Week:
- Shares of AMR Corp.(AMR), parent of American Airlines, could rise 68% in the next 12 months, citing Daniel McKenzie of CSFB.
Night Trading
Asian Indices are -.25% to +.25% on average.
S&P 500 indicated unch.
NASDAQ 100 indicated +.09%.
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
- (VIP)/.93
Upcoming Splits
- (CD) 1-for-10
- (CHAP) 2-for-1
Economic Releases
8:30 am EST
- The Change in Non-farm Payrolls for August is estimated at 125K versus 113K in July.
- The Change in Manufacturing Payrolls for August is estimated at 0K versus -15K in July.
- The Unemployment Rate for August is estimated to fall to 4.7% versus 4.8% in July.
- Average Hourly Earnings for August are estimated to rise .3% versus a .4% gain in July.
9:45 am EST
- The Final Univ. of Mich. Consumer Confidence reading for August is estimated to rise to 79.2 versus a prior estimate of 78.7.
10:00 am EST
- Construction Spending for July is estimated to fall .1% versus a .3% increase in June.
- ISM Manufacturing for August is estimated to fall to 54.5 versus a reading of 54.7 in July.
- Pending Home Sales for July are estimated to fall 1.5% versus a .4% gain in June.
Afternoon:
- Total Vehicle Sales for August are estimated to fall to 16.5M versus 17.2M in July.
- Domestic Vehicle Sales for August are estimated to fall to 12.8M versus 13.2M in July.
BOTTOM LINE: Asian indices are mixed, as gains in technology stocks are being offset by losses in consumer stocks in the region. I expect US equities to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.
Stocks Finish Mixed as Profit-Taking Offsets More Economic Optimism
Indices
S&P 1,303.83 -.03%
DJIA 11,381.15 -.02%
NASDAQ 2,183.75 -.09%
Russell 2000 720.52 -.01%
Wilshire 5000 13,051.45 +.05%
S&P Barra Growth 605.51 -.14%
S&P Barra Value 696.24 +.07%
Morgan Stanley Consumer 642.32 +.24%
Morgan Stanley Cyclical 802.68 +.70%
Morgan Stanley Technology 508.74 -.35%
Transports 4,282.94 +.29%
Utilities 442.55 +1.23%
Put/Call .88 -14.56%
NYSE Arms 1.19 -5.28%
Volatility(VIX) 12.31 +.74%
ISE Sentiment n/a
US Dollar 85.09 +.13%
CRB 329.02 +.59%
Futures Spot Prices
Crude Oil 70.36 +.47%
Unleaded Gasoline 175.04 -2.86%
Natural Gas 5.98 -4.86%
Heating Oil 195.42 +.24%
Gold 634.30 +.02%
Base Metals 229.24 +.99%
Copper 345.40 -.06%
10-year US Treasury Yield 4.73% -.42%
Leading Sectors
Gold & Silver +1.34%
Utilities +1.23%
Homebuilders +.84%
Lagging Sectors
Energy -.62%
Semis -1.02%
HMOs -1.14%
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
- None of note
Afternoon/Evening Headlines
Bloomberg:
- Toyota Motor(TM) will build its first UT center for crash-testing and safety research, enhancing its ability to design vehicles solely for the American market.
- Brazil’s economy grew 1.2% in the second quarter, the smallest gain in nine months, as a strengthening currency prompted exporters to pare their workforces and shelve investment plans.
- Lockheed Martin(LMT) won a NASA contract to build a spacecraft that will return US astronauts to the moon, beating a Northrop Grumman(NOC)-led team.
- Natural gas closed at a six-week low, falling another 4% in NY, as mild weather reduced demand for the fuel and speculators pared bets.
Business Week:
- Apple Computer(AAPL) may announce in mid-September that it will add movies for downloading at its iTunes store.
S&P 1,303.83 -.03%
DJIA 11,381.15 -.02%
NASDAQ 2,183.75 -.09%
Russell 2000 720.52 -.01%
Wilshire 5000 13,051.45 +.05%
S&P Barra Growth 605.51 -.14%
S&P Barra Value 696.24 +.07%
Morgan Stanley Consumer 642.32 +.24%
Morgan Stanley Cyclical 802.68 +.70%
Morgan Stanley Technology 508.74 -.35%
Transports 4,282.94 +.29%
Utilities 442.55 +1.23%
Put/Call .88 -14.56%
NYSE Arms 1.19 -5.28%
Volatility(VIX) 12.31 +.74%
ISE Sentiment n/a
US Dollar 85.09 +.13%
CRB 329.02 +.59%
Futures Spot Prices
Crude Oil 70.36 +.47%
Unleaded Gasoline 175.04 -2.86%
Natural Gas 5.98 -4.86%
Heating Oil 195.42 +.24%
Gold 634.30 +.02%
Base Metals 229.24 +.99%
Copper 345.40 -.06%
10-year US Treasury Yield 4.73% -.42%
Leading Sectors
Gold & Silver +1.34%
Utilities +1.23%
Homebuilders +.84%
Lagging Sectors
Energy -.62%
Semis -1.02%
HMOs -1.14%
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
- None of note
Afternoon/Evening Headlines
Bloomberg:
- Toyota Motor(TM) will build its first UT center for crash-testing and safety research, enhancing its ability to design vehicles solely for the American market.
- Brazil’s economy grew 1.2% in the second quarter, the smallest gain in nine months, as a strengthening currency prompted exporters to pare their workforces and shelve investment plans.
- Lockheed Martin(LMT) won a NASA contract to build a spacecraft that will return US astronauts to the moon, beating a Northrop Grumman(NOC)-led team.
- Natural gas closed at a six-week low, falling another 4% in NY, as mild weather reduced demand for the fuel and speculators pared bets.
Business Week:
- Apple Computer(AAPL) may announce in mid-September that it will add movies for downloading at its iTunes store.
BOTTOM LINE: The Portfolio finished slightly higher today on gains in my Semi longs, Medical longs and Retail longs. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was slightly positive today as the advance/decline line finished higher, sector performance was mixed and volume was about average. Measures of investor anxiety were mostly lower into the close. Overall, today's market performance was bullish. The 10-year yield finished near session lows at 4.73%. The NYSE Arms was at above-average levels throughout the day, which is also a positive. I expect investors to respond positively to tomorrow's employment report, barring a significant shortfall, which I do not anticipate.
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