Wednesday, February 02, 2005

Wednesday Close

S&P 500 1,193.19 +.32%
Dow 10,596.79 +.43%
NASDAQ 2,075.06 +.31%
Russell 2000 631.98 +.61%
DJ Wilshire 5000 11,752.25 +.37%
S&P Barra Growth 574.08 +.45%
S&P Barra Value 614.77 +.19%
Morgan Stanley Consumer 588.31 +.51%
Morgan Stanley Cyclical 764.28 +.52%
Morgan Stanley Technology 474.17 -.23%
Transports 3,604.17 -.04%
Utilities 347.87 +.72%
Put/Call .73 -18.89%
NYSE Arms .85 -11.46%
Volatility(VIX) 11.66 -3.08%
ISE Sentiment 122.10 -32.60%
US Dollar 83.54 +.11%
CRB 282.96 -.33%

Futures Spot Prices
Crude Oil 46.69 unch.
Unleaded Gasoline 129.10 -.19%
Natural Gas 6.42 +.77%
Heating Oil 129.95 +.19%
Gold 423.60 +.14%
Base Metals 120.92 -.49%
Copper 139.40 +.04%
10-year US Treasury Yield 4.14% +.05%

Leading Sectors
Airlines +1.86%
Iron/Steel +1.85%
Oil Service +1.83%

Lagging Sectors
I-Banks -.68%
Computer Hardware -.76%
HMOs -1.02%

After-hours Movers
AMZN -14.64% after beating 4Q revenue estimates, missing 4Q earnings estimates and raising 1Q/05 revenue guidance.
CNET -11.35% after missing 4Q estimates, lowering 1Q estimates and widening 05 guidance.
GETI +16.42% after saying it plans to pay $320 million to shareholders in the form of a special dividend.
MNT +6.87% after beating 3Q estimates and raising 05 outlook.
DIGE -17.66% after missing 2Q estimates, widening 3Q outlook and lowering 05 guidance.
TSRA -10.28% after meeting 4Q estimates and lowering 05 guidance.
SBUX -5.02% after saying same-store-sales rose 7% during January.
OSTK -4.47% on AMZN report.
STLD -4.86% after missing 4Q estimates.
MERQ +3.96% after beating 4Q estimates, raising 1Q guidance and boosting 05 outlook.

Detailed Market Summary
Market Wrap CNBC Video(bottom right)
Futures Recap
NASDAQ 100 After-hours Indicator
Real-time/After-hours Stock Quote

Afternoon Recommendations
-Goldman Sachs: Reiterated Outperform on NSM, MERQ and ALL. Reiterated Underperform on BA. Upgraded MCHP to Outperform. Downgraded MCRL to Underperform.

After-hours News
US stocks finished modestly higher today on good earnings reports, lower energy prices and Fed comments that met expectations. After the close, Walt Disney plans to build a new computer animation unit to develop sequels to films it made during its partnership with Pixar, including Toy Story, Bloomberg reported. Lenovo Group CEO Yuanqing said the company’s plan to buy International Business Machines’ personal computer unit wouldn’t post a security threat to the US, the Financial Times reported. The Irish Republican Army says it is withdrawing from the decommissioning of weapons process established under the terms of the Northern Ireland Good Friday peace agreement, Bloomberg said. Iran say the European Union has not delivers promised “incentives” in return for its pledge to suspend its uranium enrichment activities, the Financial Times said. PIMCO is “bearish” on corporate bonds, said Paul McCulley, a managing director at the firm. Martha Stewart will star in a new version of Donald Trump’s “The Apprentice,” after she completes her jail sentence for obstructing justice, Bloomberg said. China would have to ease controls on its currency within six months or face a 27.5% tariff on exports to the US under legislation to be introduced in the Senate tomorrow, Bloomberg reported. A Missouri jury ordered Brown & Williamson Tobacco to pay $20 million in punitive damages to the husband of a woman who died of heart disease after decades of smoking Kool cigarettes, Bloomberg said. US Senators McCain and Feingold won over Senator Lott, who is joining them in a proposal to restrict donations to political groups like and Swift Boat Veterans for Truth, Bloomberg reported. Federal Reserve policy makers raised the benchmark US interest rate a quarter-point to 2.5% and restated a plan to make future increases at a “measured” pace to keep inflation in check, Bloomberg said.

BOTTOM LINE: The Portfolio finished higher today on gains in my telecom, internet and steel longs. I exited a few technology longs in the afternoon as they hit stop-losses, thus leaving the Portfolio 75% net long. The tone of the market improved modestly into the close as the advance decline line finished at its daily highs and volume increased. Small-caps outperformed and measures of investor anxiety mostly fell. I expect US stocks to trade mixed-to-higher through week’s end on more optimism, good earnings/economic reports and lower energy prices.

No comments: