Monday, November 19, 2007

Stocks Finish Sharply Lower on Economic Worries

S&P 500 1,433.27 -1.75%
DJIA 12,958.44 -1.66%
NASDAQ 2,593.38 -1.66%
Russell 2000 750.35 -2.49%
Wilshire 5000 14,405.22 -1.79%
Russell 1000 Growth 595.66 -1.50%
Russell 1000 Value 778.59 -2.04%
Morgan Stanley Consumer 734.03 -1.26%
Morgan Stanley Cyclical 945.74 -3.05%
Morgan Stanley Technology 609.08 -1.68%
Transports 4,457.97 -2.32%
Utilities 520.45 +.08%
MSCI Emerging Markets 149.62 -2.38%

Total Put/Call 1.12 -12.50%
NYSE Arms 1.74 +147.8%
Volatility(VIX) 26.01 +2.04%
ISE Sentiment 128.0 +88.2%

Futures Spot Prices
Crude Oil $94.76 +.98%
Reformulated Gasoline 238.45 +.38%
Natural Gas 7.76 -2.96%
Heating Oil 260.75 +.79%
Gold 781.80 -.66%
Base Metals 229.07 -.80%
Copper 303.85 -5.02%

10-year US Treasury Yield 4.07% -9 basis points
US Dollar 75.80 -.04%
CRB Index 346.90 -.72%

Leading Sectors
Utilities +.08%
Medical Equipment -.22%
Restaurants -.32%

Lagging Sectors
Gold -4.5%
Homebuilders -4.7%
Airlines -5.2%

Evening Review
Market Performance Summary
WSJ Data Center
Sector Performance
ETF Performance
Style Performance
Commodity Movers
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Timely Economic Charts
PM Market Call
After-hours Commentary
After-hours Movers

After-hours Stock Quote
In Play

Afternoon Recommendations
- None of note

Afternoon/Evening Headlines
- Nordstrom Inc.(JWN), the owner of 101 department stores in the US, said third-quarter profit rose more than analysts estimated on the sale of its Faconnable brand. The stock jumped 12% in after-hours trading.
- Hewlett-Packard(HPQ), the biggest personal-computer maker, reported a profit that beat analysts’ estimates after extending its lead over Dell Inc.(DELL).
The company plans to buy back as much as $8 billion in shares.
- The average US pump price for regular gasoline fell 1.2 cents to $3.10/gallon in the week ended today.
- Zinc fell to a 20-month low as shipments from China, the world’s largest producer of the metal, accelerated on speculation the government will end a tax rebate on exports.

Business Week:
- Finance Stocks to Buy Now.

BOTTOM LINE: The Portfolio finished lower today on losses in my Retail longs and Biotech longs. I did not trade in the final hour, thus leaving the Portfolio 75% net long. The tone of the market was very negative today as the advance/decline line finished substantially lower, almost every sector fell and volume was slightly above average. Measures of investor anxiety were high into the close. Today's overall market action was very bearish. Nikkei futures are indicating a down-230 open in Japan. Hewlett-Packard (HPQ) and Nordstrom (JWN) just beat and raised. HPQ isn't moving much on the news, however JWN is rising 12% in after hours. Cyclicals were hit especially hard again today, falling 3%. I still think an imminent recession in the U.S. is virtually impossible if not accompanied by a significant slowdown overseas. It appears as though investors are pricing in this possibility right now. I want to see how the market reacts to this evening's positive earnings reports, and if overseas stocks stabilize tomorrow morning, before further shifting market exposure.

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