Tuesday, July 11, 2006

Stocks Finish Higher, Boosted by Rebounding Tech Shares

Indices
S&P 500 1,272.52 +.41%
DJIA 11,134.77 +.28%
NASDAQ 2,128.86 +.56%
Russell 2000 714.39 +.75%
Wilshire 5000 12,792.18 +.41%
S&P Barra Growth 586.59 +.34%
S&P Barra Value 684.50 +.47%
Morgan Stanley Consumer 616.50 +.34%
Morgan Stanley Cyclical 817.63 +.17%
Morgan Stanley Technology 478.90 +.68%
Transports 4,858.94 -.05%
Utilities 421.53 +.64%
Put/Call 1.08 +16.13%
NYSE Arms 1.31 +2.67%
Volatility(VIX) 13.14 -6.28%
ISE Sentiment 109.00 -31.88%
US Dollar 85.36 -.16%
CRB 350.28 +1.04%

Futures Spot Prices
Crude Oil 74.04 -.16%
Unleaded Gasoline 218.85 -.18%
Natural Gas 5.66 +.48%
Heating Oil 200.50 -.28%
Gold 642.70 -.06%
Base Metals 233.87 +2.21%
Copper 362.50 -.28%
10-year US Treasury Yield 5.10% -.48%

Leading Sectors
Semis +3.29%
Oil Service +3.0%
Defense +2.54%

Lagging Sectors
Oil Tankers -.71%
Homebuilders -1.21%
Airlines -1.50%

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
Raymond James:
- Added (AMMD) to Aggressive Growth category.

Afternoon/Evening Headlines
Bloomberg:
- Dan Rather, the former CBS Corp. news anchor, will produce and host a weekly news program for HDNet, a high-definition television channel co-founded by Mark Cuban.
- Nasdaq Stock Market(NDAQ) made its biggest inroads into trading shares of NYSE listed companies in more than a year.
- Genentech(DNA) said second-quarter net income rose 79% as doctors prescribed more of the company’s medicines for colon and breast cancers.
- KLA-Tencor(KLAC) and Applied Materials(AMAT) indicated demand may be stronger than analysts expected.
- Sears Holdings(SHLD) vice chairman Alan Lacy, the retailer’s former CEO, will leave the largest US dept. store chain as of July 29.
- The House of Representatives approved a measure to stifle online gambling in the US by restricting the flow of money to illegal Internet gaming sites.
- India’s Prime Minister Manmohan Singh pledged to tackle terrorism with “all possible measures” as governments across the world condemned the worst attack in Mumbai in 13 years.

BOTTOM LINE: The Portfolio finished higher today on gains in my Semi longs, Internet longs, Retail longs and Medical longs. I covered the remainder of my (IWM) and (QQQQ) shorts and added a small long position in (DNA) in the final hour, thus leaving the Portfolio 100% net long. I plan to add to my new (DNA) long on earnings related weakness. The tone of the market was positive today as the advance/decline line finished modestly higher, most sectors gained and volume was above average. Measures of investor anxiety were mostly higher into the close. Overall, today's market performance was quite bullish as the major averages and breadth improved dramatically from morning lows. Semis had been one of the worst performing sectors in the market based on the belief that earnings were going to be horrible this quarter. KLA-Tencor (KLAC) beat estimates and raised forward guidance. This will likely lead to further short-covering in the tech space tomorrow.

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