Tuesday, June 21, 2005

Stocks Finish Mixed as Oil Declines and Rates Fall

Indices
S&P 500 1,213.61 -.20%
DJIA 10,599.67 -.09%
NASDAQ 2,091.07 +.14%
Russell 2000 641.04 -.12%
DJ Wilshire 5000 12,034.96 -.20%
S&P Barra Growth 580.84 -.30%
S&P Barra Value 628.52 -.11%
Morgan Stanley Consumer 584.14 -.07%
Morgan Stanley Cyclical 740.34 -.07%
Morgan Stanley Technology 485.52 +.54%
Transports 3,568.40 -.10%
Utilities 378.86 +.03%
Put/Call .96 unch.
NYSE Arms 1.18 +42.32%
Volatility(VIX) 11.08 -3.40%
ISE Sentiment 158.00 +8.97%
US Dollar 88.24 +.14%
CRB 311.03 -.87%

Futures Spot Prices
Crude Oil 58.88 -.27%
Unleaded Gasoline 162.04 -.43%
Natural Gas 7.47 unch.
Heating Oil 162.70 -.17%
Gold 440.60 +.02%
Base Metals 125.96 -1.08%
Copper 155.70 -.54%
10-year US Treasury Yield 4.04% -1.64%

Leading Sectors
Airlines +1.81%
Internet +.80%
Semis +.71%

Lagging Sectors
Energy -2.00%
Oil Service -2.05%
Oil Tankers -2.86%

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

Afternoon Recommendations
Goldman Sachs:
- Reiterated Outperform on SSP and KR.

Afternoon/Evening Headlines
Bloomberg:
- The yen rose against the dollar and all major currencies on speculation China is closer to a decision to allow its currency to trade more freely.
- Winn-Dixie Stores, owner of 913 supermarkets in nine states and the Bahamas, will cut 22,000 positions and close about 326 stores as the company shrinks following its bankruptcy filing in February.
- European Aeronautic, Defense & Space, the parent of Airbus SAS, selected a site near Mobile, Alabama to build an engineering facility that may be expanded to build aerial refueling tankers for the US Air Force.
- Copper prices may fall 26% by the end of the year as new supplies arrive and economic growth slows from last year, said James Gutman, a metals analyst at the Goldman Sachs commodities research team in London.
- Ford Motor cut its 2005 earnings forecast for the second time this year and said it will eliminate about 1,700 more jobs because of weak sales in North America.
- US 10-year T-notes rose the most in three weeks, following gains in European bonds, after Sweden’s central bank cut its benchmark lending rate more than economists forecast.
- Crude oil was little changed in late trading after falling on speculation a report tomorrow will show US inventories of diesel and heating oil rose last week.

Financial Times:
- PartyGaming Plc’s IPO may be held next week after fund managers placed sufficient orders for shares in the online poker company within the indicated price range.

Oriental Morning Post:
- South Africa started an anti-dumping investigation into stainless-steel tube and pipe imports from China.

BOTTOM LINE: The Portfolio finished higher on gains in my Computer/Internet longs and Oil Tanker/Steel shorts. I did not trade in the afternoon, thus leaving the Portfolio 100% net long. The tone of the market was slightly positive today as the advance/decline finished a bit higher, sector performance was mostly positive and volume was below-average. Measures of investor anxiety were mostly lower into the close. Overall, today’s market action was neutral. The six-month change in the OECD Leading Global Indicators recently turned negative. It has gone from 7.59% growth to -.5%. This is the largest decline in this measure since the decline that began in 1999 and bottomed in 2001. This is one reason global bond yields continue to fall.

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