Weekly Scoreboard*

Indices
S&P 500 1,509.65 -1.67%
DJIA 13,595.10 -1.53%
NASDAQ 2,810.38 +.22%
Russell 2000 797.78 -2.87%
Wilshire 5000 15,194.27 -1.63%
Russell 1000 Growth 629.14 -.24%
Russell 1000 Value 820.02 -2.97%
Morgan Stanley Consumer 737.33 -.78%
Morgan Stanley Cyclical 1,044.66 -.92%
Morgan Stanley Technology 673.42 +.60%
Transports 4,802.75 -1.32%
Utilities 525.84 +.62%
MSCI Emerging Markets 160.98 -.52%

Sentiment/Internals
NYSE Cumulative A/D Line 69,033 +.41%
Bloomberg New Highs-Lows Index -197 -3,183%
Bloomberg Crude Oil % Bulls 60.0 +43.2%
CFTC Oil Large Speculative Longs 246,342 +.99%
Total Put/Call 1.15 +42.0%
NYSE Arms 1.11 +89.47%
Volatility(VIX) 23.01 +18.0%
ISE Sentiment 136.0 -15.72%
AAII % Bulls 44.7 +43.1%
AAII % Bears 36.5 -24.3%

Futures Spot Prices
Crude Oil 95.98 +4.59%
Reformulated Gasoline 243.85 +7.45%
Natural Gas 8.38 +7.99%
Heating Oil 257.02 +5.1%
Gold 809.80 +2.74%
Base Metals 245.84 -1.23%
Copper 335.95 -6.07%

Economy
10-year US Treasury Yield 4.32% -8 basis points
4-Wk MA of Jobless Claims 327,000 +.5%
Average 30-year Mortgage Rate 6.26% -7 basis points
Weekly Mortgage Applications 681.70 +3.84%
Weekly Retail Sales +2.2%
Nationwide Gas $2.94/gallon +.12/gallon
US Heating Demand Next 7 Days 4% below normal
ECRI Weekly Leading Economic Index 139.40 -.21%
US Dollar Index 76.27 -.90%
CRB Index 353.57 +2.23%

Best Performing Style
Large-cap Growth -.24%

Worst Performing Style
Small-cap Value -4.0%

Leading Sectors
Software +4.4%
Gold +4.11%
Disk Drives +2.8%
Defense +1.4%
Computer Hardware +1.0%

Lagging Sectors
Insurance -4.0%
Homebuilders -4.63%
Steel -4.2%
Banks -6.7%
Coal -7.49%

One-Week High-Volume Gainers

One-Week High-Volume Losers

*5-Day Change

Stocks Mixed into Final Hour as Tech Strength Offsets Financial Weakness

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Medical longs and Biotech longs. I have not traded today, thus leaving the Portfolio 75% net long. The overall tone of the market is mixed today as the advance/decline line is slightly lower, sector performance is mixed and volume is above-average. Traders are once again ignoring positive economic data as investors seem to always take the stance that the worst is yet to come in the current U.S. negativity bubble. Goldman Sachs (GS) told CNBC that rumors of an impending writedown aren't true. As well, Merrill Lynch (MER) said that it doesn't believe inappropriate deals occurred. So far, action today is sloppy and likely frustrating for both bulls and bears. Strength in tech, energy and biotech is being offset by weakness in anything associated with housing. Investor anxiety is still high. It is a positive that the broad market is holding as well as it is given the groups that remain under pressure. Housing-related plays are getting very oversold again and remain heavily-shorted, which means the slightest of catalysts could spur a near-term rally in the beaten-up shares. Beneath the surface, the tone is more positive in the broad market. I expect US stocks to trade mixed-to-higher into the close from current levels on bargain-hunting and short-covering.

Job Creation Healthy, Unemployment Still Historically Low, Earnings Rising Almost Twice Inflation, Factory Orders Rebound

- The Change in Non-farm Payrolls for October was 166K versus estimates of 85K and 96K in September.

- The Unemployment Rate for October was 4.7% versus estimates of 4.7% and 4.7% in September.

- Average Hourly Earnings for October rose .2% versus estimates of a .3% gain and a .3% increase in September.

- Factory Orders for September rose .2% versus estimates of a .7% decline and a 3.5% decline in August.

BOTTOM LINE: American employers added almost twice as many jobs as forecast in October, Bloomberg reported. The unemployment rate held at a historically low 4.7%. Service industries, which includes banks, insurance companies, restaurants and retailers, added 190,000 jobs. Average Hourly Earnings rose 3.8%, which is very high by historic stands and almost twice most measures of inflation. For two years, we have been hearing that the housing downturn would lead to imminent massive job loss, and there remains little evidence of this. Fed fund futures now imply a 72% chance for another 25 basis-point-cut at the upcoming December meeting, up from a 60% chance yesterday. I continue to believe the US job market will remain healthy over the intermediate-term without generating substantial unit labor cost increases.

Orders to US factories unexpectedly rose in September, suggesting companies remain confident the economy will continue to grow, Bloomberg reported. Excluding transports, demand jumped 1.4%. Bookings for capital goods excluding aircraft and military equipment, a measure of future business investment, rose .6% versus a .1% gain in August. Manufacturers had enough goods on hand to last 1.24 months, the same as the prior month. I continue to believe manufacturing will help boost overall US growth over the intermediate-term as companies gain confidence in the sustainability of the current expansion and rebuild depleted inventories.

Links of Interest

Market Snapshot Commentary
Market Performance Summary
Style Performance
Sector Performance
WSJ Data Center
Top 20 Biz Stories
IBD Breaking News
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In Play
NYSE Unusual Volume
NASDAQ Unusual Volume
Hot Spots
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DJIA Quick Charts
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Friday Watch

Late-Night Headlines
Bloomberg:
- Federal Reserve Chairman Ben S. Bernanke’s plans to resolve the subprime-mortgage crisis are “significant,” said civil-rights leader Jesse Jackson, who called on the central bank chief to organize a banking summit.
- Amaranth Advisors LLC’s bid to halt federal energy regulators from proceeding with a proposed $291 fine was rejected by a federal judge in NY.
- The House Ways and Means Committee approved a plan to raise taxes on executives of hedge funds and private-equity firms by $49.5 billion over the next decade to prevent a separate tax increase on middle-income families this year.
- Paulson & Co. scaled back bets against subprime-mortgage securities, recording investment profits that helped the NY-based hedge fund manager double assets to $24 billion this year. Paulson cut bets against securities linked to subprime home loans by 86% across its eight funds. Paulson’s $5 billion Credit Opportunities Fund has soared more than 500% this year.
- Copper tumbled 3.2%, the most in 11 weeks, after stockpiles monitored by the London Metal Exchange rose 8.3% this week to the highest level since April. Supplies surged 28% in October, according to the LME.
- Republican former House Speaker Newt Gingrich, who a month ago said Senator Hillary Clinton had an 80% chance of being the next US president, now says recent stumbles may costs her the White House.
- Democratic lawmakers, ignoring a veto threat, will try to force President Bush to approve an increase in domestic spending by combining it with legislation funding military construction and veterans’ programs.
- General Motors(GM) and Japanese automakers led the US auto industry to its first monthly sales gain since May, while Ford Motor(F) and Chrysler LLC slipped.

Wall Street Journal:
- IRS Steps Up Tax Probe Of Hedge, Buyout Firms.

Wired:
- Google(GOOG) Aims to Break Open the Closed World of Social Networking.

USA Today.com:
- Mortgage rates drop to the lowest level in 5 months.
- Emerging markets have rocked, so now it’s time to roll.

Reuters:
- Top-20 selling vehicles in US through October.

Financial Times:
- The US is to offer Turkey a package of measures to dissuade Ankara from mounting a large-scale military incursion into Iraq to attack PKK Kurdish guerrillas, who have killed scores of Turkish soldiers in recent weeks.

Late Buy/Sell Recommendations
- None of note

Night Trading
Asian Indices are -2.0% to -1.0% on average.
S&P 500 futures +.05%.
NASDAQ 100 futures +.09%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
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Before the Bell CNBC Video(bottom right)
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Today in IBD
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Earnings of Note
Company/EPS Estimate
- (NYX)/.73
- (B)/.44
- (VIA/B)/.59
- (IP)/.57
- (MSO)/-.12
- (OMG)/1.17
- (PDX)/.80
- (TE)/.35
- (CI)/.94
- (DUK)/.39
- (BRK/A)/1401.87
- (CVX)/2.07

Upcoming Splits
- (ATU) 2-for-1

Economic Releases
8:30 am EST
- The Change in Non-farm Payrolls for October is estimated at 85K versus 110K in September.
- The Unemployment Rate for October is estimated at 4.7% versus 4.7% in September.
- Average Hourly Earnings for October are estimated to rise .3% versus a .4% gain in September.

10:00 am EST
- Factory Orders for September are estimated to fall .7% versus a 3.3% decline in August.

Other Potential Market Movers
- The (FFIV) analyst meeting, (PKI) analyst meeting and (WSH) investor day could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by automaker and financial stocks in the region. I expect US equities to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Finish at Session Lows on Worries in the Financial Sector

BOTTOM LINE: The Portfolio finished lower today on losses in my Computer longs, Retail longs and Biotech longs. I added to my (EEM) short and added (IWM)/(QQQQ) hedges in the final hour, thus leaving the Portfolio 75% net long. The tone of the market was very negative today as the advance/decline line finished substantially lower, every sector fell and volume was above average. Measures of investor anxiety were elevated into the close. Today's overall market action was bearish. I speculated a couple of years ago that growth stocks were poised to embark on a period of multiyear outperformance over value stocks. I most recently made the case at the beginning of the month. Considering that the overwhelming majority of managers, especially hedge fund managers, are value investors, this could help explain some of the extreme pessimism towards U.S. stocks. Here is a look at how the two styles are performing over the last 12 months:

Style	12-Month Return
Russell 1000 Growth	+18.1%
Russell 1000 Value	+ 6.8%
Russell Midcap Growth	+ 19.0%
Russell Midcap Value	+ 6.5%
Russell 2000 Growth	+16.1%
Russell 2000 Value	-1.0%

As far as Barton Biggs being wrong about his year-end bull stampede call after just one day, let's not forget that he was one of the few that timed the bottom perfectly back on August 16 right when many others were calling for crashes, bear markets and depressions beginning. The S&P 500 is 110% higher since the October 2002 major bear market lows and is only 3.5% off a record high despite calls by many for a new bear market beginning all the way up every few months.