Thursday, December 02, 2004

Thursday Close

S&P 500 1,190.33 -.09%
NASDAQ 2,143.57 +.25%

Leading Sectors
Airlines +3.57%
Disk Drives +2.37%
Biotech +1.81%

Lagging Sectors
Commodity -2.42%
Energy -2.65%
Iron/Steel -3.09%

Crude Oil 43.45 +.46%
Natural Gas 6.83 +.35%
Gold 451.30 -.22%
Base Metals 1117.87 -2.42%
U.S. Dollar 81.95 +.48%
10-Yr. T-note Yield 4.40% +.90%
VIX 12.98 +.08%
Put/Call .83 +3.75%
NYSE Arms .87 +42.62%

After-hours Movers
INTC +7.2% after boosting 4Q outlook and reducing inventories.
*Semiconductors and Equipment stocks up across the board on INTC report.

Goldman Sachs reiterated Outperform on WAG, BBY, GLW and WMT. Goldman reiterated Underperform on MAY and JDSU.

After-hours News
U.S. stocks finished quietly mixed today as investor apprehension rose in the afternoon ahead of Intel's mid-quarter update and tomorrow's employment report. Sony says 20 million European homes will have high-definition television by 2008, the Financial Times said. NY State Comptroller Hevesi, who sued Merck earlier this week over pension fund losses related to the drug Vioxx, said the company delayed its response to indications the drug caused heart trouble because it was making so much money from it, CNBC reported. A rise in steel shipments boosted traffic at the Port of Indiana-Burns Harbor to a record in October, American Metal Market reported. Crude oil's three day, 13% plunge is the steepest decline is the steepest since the U.S.-led invasion of Iraq in March 2003, Bloomberg reported. Procter & Gamble needs to conduct more research to win approval of its testosterone patch to treat sexual dysfunction in women, a FDA advisory panel said. Intel said fourth-quarter sales will exceed its previous forecasts as demand grows for laptop and desktop personal computers, Bloomberg said. President Bush said the U.S. is "very firm" that Iraq should hold elections on schedule Jan. 30, Bloomberg reported. Ukrainian opposition leader Viktor Yushchenko said the government might use force to end protests against alleged presidential election fraud, as outgoing President Kuchma reiterated his call for a new vote, Bloomberg reported.

BOTTOM LINE: The Portfolio finished lower today on losses in my Chinese ADR and steel longs. I added a few new semi equipment and wireless longs into the afternoon weakness, thus leaving the Portfolio 125% net long. One of my new longs is AMAT and I am using a $16.80 stop-loss on this new position. The tone of the market was weaker today, which was somewhat disappointing considering another substantial decline in energy prices and rise in the US dollar. However, stocks are reacting positively to Intel's report after-hours. Commodity-related stocks have likely peaked in the intermediate-term on year-end repositioning, worries over excess supply and a bounce in the US dollar. I continue to expect another push higher tomorrow on the INTC news and a better-than-expected jobs' report.

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