Thursday, December 08, 2005

Stocks Finish Modestly Lower on Late-day Rebound

S&P 500 1,255.84 -.12%
DJIA 10,755.12 -.52%
NASDAQ 2,246.46 -.25%
Russell 2000 685.22 +.32%
DJ Wilshire 5000 12,579.40 -.01%
S&P Barra Growth 601.10 -.22%
S&P Barra Value 650.39 -.03%
Morgan Stanley Consumer 589.61 -.30%
Morgan Stanley Cyclical 777.47 -.14%
Morgan Stanley Technology 528.86 -.59%
Transports 4,082.59 -.69%
Utilities 406.58 +1.37%
Put/Call .99 +26.92%
NYSE Arms 1.16 +11.74%
Volatility(VIX) 12.21 +.25%
ISE Sentiment 196.00 +.51%
US Dollar 91.26 -.69%
CRB 330.44 +1.78%

Futures Spot Prices
Crude Oil 61.03 +.61%
Unleaded Gasoline 164.30 +1.01%
Natural Gas 15.42 +2.88%
Heating Oil 180.50 +1.22%
Gold 524.10 +.27%
Base Metals 152.95 +.04%
Copper 202.65 -.17%
10-year US Treasury Yield 4.46% -1.05%

Leading Sectors
Oil Service +3.44%
Energy +1.81%
Gold & Silver +1.80%

Lagging Sectors
Restaurants -1.16%
Steel -1.20%
Semis -1.71%

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 PFE and WON.
- Upgraded MEH to Outperform.

Afternoon/Evening Headlines
- The US House passed a $56.6 billion budget measure that extends past 2008 a 15% tax rate on dividends and most capital gains.
- Intel said fourth-quarter sales will rise to a record $10.4 billion to $10.6 billion, within previous forecasts, as consumers buy laptops for holiday gifts.
- Commuters driving into Manhattan will be required to carry at least three passengers during certain hours and taxis will have to pick up multiple riders under New York City’s plan for handling a possible transit strike.
- Crude oil rose a second day and natural gas reached a record as cold weather in the northern US bolsters heating-fuel demand.
- Electronic Arts will buy Jamdat Mobile for $680 million to expand its share of the $1 billion market for cell-phone games.

Financial Times:
- BP Plc, Europe’s largest oil company, has been referred for “criminal action” in the US in connection with an explosion at its Texas City refinery.

- US life expectancy has reached 77.6 years, a record high, citing a National Center for Health Statistics report.

Chronicle of Higher Education:
- US universities awarded 3.4% more doctorates in 2004, the biggest one-year increase in 12 years.
- Former presidents Bill Clinton and George H.W. Bush said a relief fund they organized raised $90 million in education grants, and $30 million will go to colleges and universities that were devastated by Hurricane Katrina.
BOTTOM LINE: The Portfolio finished slightly higher today on gains in my Internet longs, Retail longs and Semi longs. I did not trade in the afternoon, thus leaving the Portfolio 100% net long. The tone of the market was neutral today as the advance/decline line finished about unchanged, sector performance was mixed and volume was above average. Measures of investor anxiety were mostly higher into the close. Overall, the bears get the win today, but they can't feel very good about the underlying action. The Russell 2000 closed higher, the S&P 500 was barely down, the A/D line was almost unchanged, Google (GOOG) traded 6 points higher and the homebuilders/retailers were both higher. This comes on a day when natural gas exceeded $15. If natural gas is in a final blow-off move higher, which I suspect, some more temporary weakness in equities is possible. However, I still expect any near-term weakness to be shallow and short-lived.

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