Tuesday, May 24, 2005

Stocks Finished Mixed After Late-Day Bounce

S&P 500 1,194.07 +.02%
DJIA 10,503.68 -.19%
NASDAQ 2,061.62 +.24%
Russell 2000 612.95 +.01%
DJ Wilshire 5000 11,780.23 +.03%
S&P Barra Growth 578.24 +.05%
S&P Barra Value 611.31 -.02%
Morgan Stanley Consumer 589.89 -.11%
Morgan Stanley Cyclical 724.46 -.38%
Morgan Stanley Technology 480.21 +.27%
Transports 3,632.66 +.17%
Utilities 363.48 +.07%
Put/Call .74 -8.64%
NYSE Arms 1.0 +23.59%
Volatility(VIX) 12.69 -2.01%
ISE Sentiment 152.00 -11.63%
US Dollar 86.37 -.03%
CRB 296.72 +.08%

Futures Spot Prices
Crude Oil 49.81 +.28%
Unleaded Gasoline 142.60 -.05%
Natural Gas 6.33 -.22%
Heating Oil 139.10 +.28%
Gold 418.40 +.17%
Base Metals 121.57 +1.06%
Copper 140.50 unch.
10-year US Treasury Yield 4.03% -.57%

Leading Sectors
Gold & Silver +2.46%
Semis +1.55%
Computer Hardware +.75%

Lagging Sectors
Papers -1.0%
Gaming -1.06%
Steel -1.31%

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
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
Goldman Sachs:
- Reiterated Outperform on HD, DKS, MDT, ACN, AAP and ODP.
- Reiterated Underperform on DDS.

Afternoon/Evening Headlines
- The US accounting oversight board revoked the registration of Goldstein & Morris, a NY accounting firm, marking the first disciplinary action since it was established in 2003.
- GM debt was cut to junk by Fitch Ratings, the second time in three weeks the world’s biggest automaker lost an investment-grade credit rating on concern about a drop in market share.
- US Treasuries rose, sending the 10-year T-note to its biggest two-day gain in almost a month, on speculation the Fed will be able to keep inflation in check.
- Legislation to expand federal funding for medical research using embryonic stem cells won approval in the US House of Representatives in a 238-194 decision, short of the 290 votes needed to override President Bush’s threatened veto.

Smart Money:
- International Strategy & Investing Group has become influential among Wall Street investors with its broad view of markets and easy-to-read reports.

- Egyptian President Hosni Mubarak called for a high voter turnout in tomorrow’s referendum on a constitutional amendment to allow the country to hold its first multiparty presidential election.

BOTTOM LINE: The Portfolio finished substantially higher today on gains in my Internet, Wireless, Retail and Semiconductor longs. I did not trade in the afternoon, thus leaving the Portfolio 100% net long. The tone of the market strengthened modestly into the afternoon as the advance/decline finished near session highs, sector performance was mixed and volume was average. Measures of investor anxiety were mixed into the close. Overall, today’s market action was slightly positive considering recent gains, the bounce in energy prices and mixed Fed comments. Today’s afternoon strength bodes well for further gains tomorrow. Long-term rates should begin a counter-trend bounce on tomorrow’s economic reports.

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