Monday, December 13, 2004

Monday Close

S&P 500 1,198.68 +.90%
NASDAQ 2,148.50 +.96%

Leading Sectors
Software +3.09%
Iron/Steel +2.53%
HMOs +1.85%

Lagging Sectors
Retail -.09%
Networking -.41%
Hospitals -.49%

Crude Oil 41.10 +.22%
Natural Gas 7.27 +1.52%
Gold 440.50 +.05%
Base Metals 115.66 +1.28%
U.S. Dollar 82.14 -.64%
10-Yr. T-note Yield 4.15% -.05%.
VIX 12.54 -1.72%
Put/Call .71 +14.52%
NYSE Arms .72 -47.83%

After-hours Movers
SHOP +4.6% after saying UK entered into a services agreement with Google.
SLAB +4.7% after Citi SmithBarney initiated it with Buy(Top Pick), target $46.
LNG +14.3% after completing an agreement to the rights to its Louisiana-based plant to ChevronTexaco.
ERTS +5.0% after saying it entered into exclusive licensing relationships with the NFL and Players Inc. to develop, publish and distribute interactive football games.
TTWO -6.21% on ERTS news.
TKLC -6.90% after saying its CFO resigned to become CFO for DGIN.

Citi SmithBarney rated SLAB and SWKS Buy, targets $46 and $14.25, respectively.

After-hours News
U.S. stocks finished higher today on optimism over U.S. economic growth and merger activity. After the close, China and Russia will hold joint military exercises next year, a step that the Chinese defense minister said should not be seen as threatening to other nations, Russia's Interfax news agency reported. The National Hockey League, which is in the midst of an 89-day lockout, will reject the latest proposal from the players union and make a counteroffer tomorrow, TSN of Canada reported. Anger, fear and other negative emotions may be triggers for a stroke, a study of 200 stroke victims bound, Bloomberg reported. New York's crime rate has dropped 4.6% this year, making it the safest of the 25 largest U.S. cities, Mayor Bloomberg said. Sprint and Nextel stand to save more than $3 billion in network costs by combining their U.S. mobile-telephone operations, Bloomberg reported. PepsiCo agreed to purchase General Mills' 40% stake in their European snacks joint venture for $750 million, Bloomberg said. Scott Peterson was sentenced to death by a California jury for the murder of his 27-year-old pregnant wife Laci, Bloomberg reported. American Express agreed with Citigroup to issue credit cards in the U.S. that will be accepted on its global merchant network, Bloomberg reported.

BOTTOM LINE: The Portfolio finished higher today on gains in my internet, semi, semi-equipment and Chinese ADR longs. I did not trade in the afternoon, thus leaving the Portfolio 125% net long. The overall tone of the market improved throughout the day with volume increasing and the advance/decline line finishing near its highs for the day. Interest rates failed to move higher even with the pullback in the dollar. As well, it was a positive for the bulls to see energy prices bounce up and equities advance to 3-year highs. I continue to expect data and events this week to propel U.S. stocks higher.

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