S&P 500 1,094.80 -.09%
NASDAQ 1,914.04 -.06%
Leading Sectors
Airlines +4.22%
Homebuilders +3.88%
Steel +3.61%
Lagging Sectors
HMOs -.64%
Restaurants -.80%
Biotech -1.27%
Other
Crude Oil 54.35 -1.49%
Natural Gas 7.92 -2.28%
Gold 430.10 +1.06%
Base Metals 111.02 -1.63%
U.S. Dollar 84.97 -1.05%
10-Yr. T-note Yield 3.97% -.10%
VIX 16.58 +8.51%
Put/Call .73 -1.35%
NYSE Arms 1.16 -8.66%
After-hours Movers
PHRM +5.3% after beating 3Q estimates and raising 04 outlook.
NVDA +11.7% after boosting 3Q sales estimate.
MMC +9.4% after CEO Greenberg resigned, 11 days after Spitzer probe was announced.
DAL +6.4% after saying American Express agreed to provide as much as $600 million in financing, including $500 million to prepay for the airline's frequent-flier points.
SLAB -20.7% after meeting 3Q estimates and lowering 4Q guidance substantially.
FLEX -7.5% after missing 2Q estimates and lowering 3Q/4Q guidance.
ATRS -7.1% after missing 3Q estimates and raising 4Q outlook.
Recommendations
Goldman Sachs reiterated Outperform on KO, BC and BSX. Goldman reiterated Underperform on ASH.
After-hours News
U.S. stocks finished slightly lower today as continuing worries over high energy prices, politics and terrorism offset a strong housing report. After the close, Time Warner and Comcast will be allowed to bid together for assets of Adelphia Communications, the Wall Street Journal reported. Japan will take action to prevent a rapid appreciation of the yen as the U.S. dollar declines, Reuters reported. Pitney Bowes, the word's largest maker of postal meters and mailing equipment, said third-quarter profit rose 15% on lower costs and higher sales of software and services, Bloomberg said. American Express said quarterly profit climbed 14% to a record as customers spent more on travel and carried larger loan balances, Bloomberg reported. Boston's wins over St. Louis in the first two games of the World Series, televised by Fox, drew the highest tv ratings for the start of the World Series since 1996, Bloomberg said. Electronic Data Systems said it delayed the release of third-quarter earnings while it reviews the value of a contract with the U.S. Navy, Bloomberg said. Toyota Motor's U.S. auto-loan unit said it will restate financial results for the past three years, raising profit and revenue because some fees paid to dealers were accounted for incorrectly, Bloomberg said.
BOTTOM LINE: The Portfolio had its best day of the year today on substantial strength in my internet, security and steel longs. I did not trade in the afternoon, thus leaving the Portfolio's market exposure at 100% net long. Notwithstanding the small losses in the major indices, most stocks were higher on the day. The VIX is moving up ahead of the election which is also a positive. Any sell-off related to weaker-than-expected economic reports over the next few days should be bought as the U.S. economy is poised to accelerate on the conclusion of the election without terrorism.
Monday, October 25, 2004
Mid-day Update
S&P 500 1,094.30 -.13%
NASDAQ 1,915.61 +.02%
Leading Sectors
Airlines +4.13%
Iron/Steel +3.57%
Homebuilders +3.46%
Lagging Sectors
Restaurants -.62%
I-Banks -.64%
Biotech -1.41%
Other
Crude Oil 55.18 +.02%
Natural Gas 7.97 -1.67%
Gold 430.10 +1.03%
Base Metals 111.02 -1.63%
U.S. Dollar 85.0 -1.01%
10-Yr. T-note Yield 3.95% +-.48%
VIX 16.52 +8.12%
Put/Call .76 +2.70%
NYSE Arms 1.23 -3.15%
Market Movers
GOOG +5.5% on continuing optimism over last week's earnings report.
ONXX -27.2% after the company said it doesn't expect to begin selling an experimental kidney-cancer treatment until 2006.
TXU +13.4% after boosting 05 estimates substantially, announcing 50M share buyback and boosting dividend.
ISG +24.0% Mittal agreed to Buy the company for $4.5B, forming the world's largest steel company.
*Steel stocks up across the board on ISG deal.
ADP +5.5% after beating 1Q estimates.
VFC +7.1% after beating 3Q estimates, raising 4Q outlook and boosting dividend.
JBSS -28.6% on disappointing 1Q earnings.
CNF -6.1% after missing 3Q estimates and lowering 4Q guidance.
*Homebuilding stocks up across the board on strong existing home sales report.
Economic Data
Existing Home Sales for September were 6.75M versus estimates of 6.51M and 6.55M in August.
Recommendations
Goldman Sachs reiterated Outperform on NEM, VLTR, SII and PDG. Goldman reiterated Underperform on FISV, RAI and LSI. Citi SmithBarney upgraded semiconductor sector globally, favorites are INTC, ADI, FCS, IRF, LLTC, MCRL, MXIM, NSM, SMTC. Citi reiterated Buy on CTSH, target $40. Citi reiterated Buy on NE, target $57. Citi reiterated Buy on WMT, target $65. Citi reiterated Buy on PLCE, target $40. AIG raised to Buy at Deutsche Bank, target $69. SUP cut to Reduce at UBS, target $22. XL cut to Underweight at Morgan Stanley. OSTK raised to Buy at Legg Mason, target $69. CDX raised to Buy at Bank of America, target $31. ACE raised to Overweight at Morgan Stanley, target $41. IPCR raised to Overweight at JP Morgan. HCA cut to Underperform at CSFB, target $31. PHM raised to Outperform at CSFB, target $55. LRCX added to JP Morgan "Focus List", target $30.
Mid-day News
U.S. stocks are quietly mixed mid-day as a better-than-expected housing report is being offset by declining biotech shares. Delta Air is close to an agreement to give its pilots a big equity stake in return for cuts in pay and benefits, the Wall Street Journal reported. Barney New York plans to open 32 stores in the next five years, almost doubling its size, in hopes of finding a buyer for the company, the NY Post reported. AOL Music's Web site has become an important tool in the recording industry for promoting musicians and records, the NY Daily News said. Constellation Brands may face rivals in its bid to acquire California winemaker Robert Mondavi, the LA Times said. Applied Digital Solutions, which makes implantable chips to track people and pets, may face hurdles in selling chips that instantly provide patients' medical histories, Barron's reported. Deckers Outdoor's Ugg footwear remains in demand by retailers, even as fashion critics claim the sheepskin boots are out of style, the LA Times reported. U.S. Supreme Court Justice Rehnquist has been hospitalized for thyroid cancer, CNN reported. Ispat Intl. NV, part of the world's second-largest steelmaker, said it will buy LNM Holdings NV and then merge with Intl. Steel Group to create the world's largest steelmaker, Bloomberg reported. Violent crime in the U.S. declined 3% last year and has decreased 26% since 1994, according to the FBI's annual crime report. The European Union said it's ending sanctions on $4 billion of U.S. imports in about two months, Bloomberg reported. Norway's government intervened for the second time this year to forcibly end a labor conflict that threatened to shut down all oil and gas production from the world's third-largest crude exporter, Bloomberg said. The $866 billion hedge fund industry is making a last-ditch attempt to stop a U.S. SEC plan to impose new regulations on the private investment partnerships, Bloomberg reported. U.S. sales of previously owned houses rose in September to the third-highest pace on record, evidence that low borrowing costs were attracting buyers and helping sustain the economic expansion, Bloomberg said. RealClearPolitics.com has President Bush with an average national lead in the 3-way race for president of 3.1 percentage points in all major polls.
Bottom Line: The Portfolio is substantially higher mid-day on strength in my security, internet and telecom ADR longs. I added a few new longs this morning, bringing the Portfolio to 100% net long. One of my new longs is OS and I am using a $13.50 stop-loss on this position. The strong housing report is a very good sign for the U.S. economy and once again crushes the Bears hopes for a bursting of the so-called "housing bubble." I continue to expect the U.S. economy to grow around 4% for the 3rd quarter and accelerate to around 5% growth during the 4th quarter as election uncertainty lifts, oil falls in price and domestic terrorism fears diminish. I also believe technology shares will continue to outperform through year-end. It is probable that the major indices are very close or at a bottom for the year. I will look to add market exposure on any weakness through week's end.
NASDAQ 1,915.61 +.02%
Leading Sectors
Airlines +4.13%
Iron/Steel +3.57%
Homebuilders +3.46%
Lagging Sectors
Restaurants -.62%
I-Banks -.64%
Biotech -1.41%
Other
Crude Oil 55.18 +.02%
Natural Gas 7.97 -1.67%
Gold 430.10 +1.03%
Base Metals 111.02 -1.63%
U.S. Dollar 85.0 -1.01%
10-Yr. T-note Yield 3.95% +-.48%
VIX 16.52 +8.12%
Put/Call .76 +2.70%
NYSE Arms 1.23 -3.15%
Market Movers
GOOG +5.5% on continuing optimism over last week's earnings report.
ONXX -27.2% after the company said it doesn't expect to begin selling an experimental kidney-cancer treatment until 2006.
TXU +13.4% after boosting 05 estimates substantially, announcing 50M share buyback and boosting dividend.
ISG +24.0% Mittal agreed to Buy the company for $4.5B, forming the world's largest steel company.
*Steel stocks up across the board on ISG deal.
ADP +5.5% after beating 1Q estimates.
VFC +7.1% after beating 3Q estimates, raising 4Q outlook and boosting dividend.
JBSS -28.6% on disappointing 1Q earnings.
CNF -6.1% after missing 3Q estimates and lowering 4Q guidance.
*Homebuilding stocks up across the board on strong existing home sales report.
Economic Data
Existing Home Sales for September were 6.75M versus estimates of 6.51M and 6.55M in August.
Recommendations
Goldman Sachs reiterated Outperform on NEM, VLTR, SII and PDG. Goldman reiterated Underperform on FISV, RAI and LSI. Citi SmithBarney upgraded semiconductor sector globally, favorites are INTC, ADI, FCS, IRF, LLTC, MCRL, MXIM, NSM, SMTC. Citi reiterated Buy on CTSH, target $40. Citi reiterated Buy on NE, target $57. Citi reiterated Buy on WMT, target $65. Citi reiterated Buy on PLCE, target $40. AIG raised to Buy at Deutsche Bank, target $69. SUP cut to Reduce at UBS, target $22. XL cut to Underweight at Morgan Stanley. OSTK raised to Buy at Legg Mason, target $69. CDX raised to Buy at Bank of America, target $31. ACE raised to Overweight at Morgan Stanley, target $41. IPCR raised to Overweight at JP Morgan. HCA cut to Underperform at CSFB, target $31. PHM raised to Outperform at CSFB, target $55. LRCX added to JP Morgan "Focus List", target $30.
Mid-day News
U.S. stocks are quietly mixed mid-day as a better-than-expected housing report is being offset by declining biotech shares. Delta Air is close to an agreement to give its pilots a big equity stake in return for cuts in pay and benefits, the Wall Street Journal reported. Barney New York plans to open 32 stores in the next five years, almost doubling its size, in hopes of finding a buyer for the company, the NY Post reported. AOL Music's Web site has become an important tool in the recording industry for promoting musicians and records, the NY Daily News said. Constellation Brands may face rivals in its bid to acquire California winemaker Robert Mondavi, the LA Times said. Applied Digital Solutions, which makes implantable chips to track people and pets, may face hurdles in selling chips that instantly provide patients' medical histories, Barron's reported. Deckers Outdoor's Ugg footwear remains in demand by retailers, even as fashion critics claim the sheepskin boots are out of style, the LA Times reported. U.S. Supreme Court Justice Rehnquist has been hospitalized for thyroid cancer, CNN reported. Ispat Intl. NV, part of the world's second-largest steelmaker, said it will buy LNM Holdings NV and then merge with Intl. Steel Group to create the world's largest steelmaker, Bloomberg reported. Violent crime in the U.S. declined 3% last year and has decreased 26% since 1994, according to the FBI's annual crime report. The European Union said it's ending sanctions on $4 billion of U.S. imports in about two months, Bloomberg reported. Norway's government intervened for the second time this year to forcibly end a labor conflict that threatened to shut down all oil and gas production from the world's third-largest crude exporter, Bloomberg said. The $866 billion hedge fund industry is making a last-ditch attempt to stop a U.S. SEC plan to impose new regulations on the private investment partnerships, Bloomberg reported. U.S. sales of previously owned houses rose in September to the third-highest pace on record, evidence that low borrowing costs were attracting buyers and helping sustain the economic expansion, Bloomberg said. RealClearPolitics.com has President Bush with an average national lead in the 3-way race for president of 3.1 percentage points in all major polls.
Bottom Line: The Portfolio is substantially higher mid-day on strength in my security, internet and telecom ADR longs. I added a few new longs this morning, bringing the Portfolio to 100% net long. One of my new longs is OS and I am using a $13.50 stop-loss on this position. The strong housing report is a very good sign for the U.S. economy and once again crushes the Bears hopes for a bursting of the so-called "housing bubble." I continue to expect the U.S. economy to grow around 4% for the 3rd quarter and accelerate to around 5% growth during the 4th quarter as election uncertainty lifts, oil falls in price and domestic terrorism fears diminish. I also believe technology shares will continue to outperform through year-end. It is probable that the major indices are very close or at a bottom for the year. I will look to add market exposure on any weakness through week's end.
Monday Watch
Earnings of Note
Company/Estimate
AFCI/.02
AXP/.69
BLS/.51
CNF/.77
EXBD/.37
EDS/.08
FLEX/.17
HLT/.13
INSP/.25
ISSX/.16
KMB/.90
K/.55
NBR/.46
PBI/.63
PHM/2.00
R/.79
DGX/1.27
ZMH/.53
Splits
CELG 2-for-1
PDCO 2-for-1
Economic Data
Existing Home Sales for September estimated at 6.51M versus 6.54M in August.
Weekend Recommendations
Wall Street Week w/Fortune had guests that were positive on GIS, CL, KO, FNM, GDW, BRK, RMK, MAT, FLDR, LNDC, MUR, CVX, MDX, IMDC,SYD and PDCO. Louis Rukeyser's Wall Street had guests that were positive on XOM, PFE, IBM, CMX, NFX, UNP, ADBL, PWN, PXP, VIP and LUKOY. Barron's had positive comments on WYE, DBD, NUHC, FNM, CMLS, COCO, LH, ESI, IACI and negative comments on PSUN, ARO, DKS. Goldman Sachs reiterated Outperform on UDR, ALL, SLB, IP, SPP, DTC, BBY, EBAY, DD, ROH, DOW, BC and ASN. Goldman reiterated Underperform on AVB, CYT, SIAL, CR and ATI.
Weekend News
Japan may extend loans to the Iraqi oil ministry to help fund oil and gas projects, the Middle East Economic Survey said. San Francisco transit police are for the first time patrolling the city's subway system with assault weapons and gas masks to deter potential terrorists as Election Day nears, the San Francisco Chronicle reported. President Bush may tap Ben Bernanke to replace Alan Greenspan as chairman of the U.S. Federal Reserve and John Kerry might nominate Alan Blinder if he is elected, Barron's said. Hamid Karzai has won the required majority of votes for outright victory in Afghanistan's presidential election, Agence France-Presse reported. Google is not developing a browser and won't enter any browser wars with Microsoft and Yahoo!, the Financial Times said. NY Democratic Attorney General Spitzer may bring a civil lawsuit against Aon Corp., the world's second largest insurance broker, for antitrust violations, the NY Times reported. Nu Skin Enterprises(NUS) expects its China sales to grow as much as 20-fold in three to five years, making the country its biggest international market, China Daily reported. Wal-Mart said U.S. sales at stores open at least a year are rising within its forecast of 2-4%, boosted by boys' and girls' wear and bedding, Bloomberg said. U.S. intelligence and law enforcement authorities said no direct evidence has been found to indicate plans for an election-related terrorist attack, Bloomberg said. The Fed can raise rates at a measured pace because U.S. economic growth is "solid" and rising energy costs haven't yet sparked concern about a broader acceleration of inflation, Fed Governor Susan Bies said. President Bush called on Congress to pass legislation he proposed to comply with guidelines set out by the federal commission studying the intelligence failures that led to the Sept. 11, 2001, attacks, Bloomberg reported. Northwestern Japan was jolted by aftershocks after a series of earthquakes killed 23 and injured more than 2,100, forcing thousands more to seek shelter in the deadliest temblor since 1995, Bloomberg reported. The creation of a U.S. insurance regulator is gaining support in Congress and among consumer groups after Spitzer disclosed his probe of improper sales practices, Bloomberg said.
Late-Night Trading
Asian indices are lower, -1.50% to -.50% on average.
S&P 500 indicated -.42%.
NASDAQ 100 indicated -.48%
BOTTOM LINE: I expect U.S. stocks to open modestly lower in the morning on weakness in Asia, worries over U.S. politics and high energy prices. The Portfolio is 75% net long heading into tomorrow.
Company/Estimate
AFCI/.02
AXP/.69
BLS/.51
CNF/.77
EXBD/.37
EDS/.08
FLEX/.17
HLT/.13
INSP/.25
ISSX/.16
KMB/.90
K/.55
NBR/.46
PBI/.63
PHM/2.00
R/.79
DGX/1.27
ZMH/.53
Splits
CELG 2-for-1
PDCO 2-for-1
Economic Data
Existing Home Sales for September estimated at 6.51M versus 6.54M in August.
Weekend Recommendations
Wall Street Week w/Fortune had guests that were positive on GIS, CL, KO, FNM, GDW, BRK, RMK, MAT, FLDR, LNDC, MUR, CVX, MDX, IMDC,SYD and PDCO. Louis Rukeyser's Wall Street had guests that were positive on XOM, PFE, IBM, CMX, NFX, UNP, ADBL, PWN, PXP, VIP and LUKOY. Barron's had positive comments on WYE, DBD, NUHC, FNM, CMLS, COCO, LH, ESI, IACI and negative comments on PSUN, ARO, DKS. Goldman Sachs reiterated Outperform on UDR, ALL, SLB, IP, SPP, DTC, BBY, EBAY, DD, ROH, DOW, BC and ASN. Goldman reiterated Underperform on AVB, CYT, SIAL, CR and ATI.
Weekend News
Japan may extend loans to the Iraqi oil ministry to help fund oil and gas projects, the Middle East Economic Survey said. San Francisco transit police are for the first time patrolling the city's subway system with assault weapons and gas masks to deter potential terrorists as Election Day nears, the San Francisco Chronicle reported. President Bush may tap Ben Bernanke to replace Alan Greenspan as chairman of the U.S. Federal Reserve and John Kerry might nominate Alan Blinder if he is elected, Barron's said. Hamid Karzai has won the required majority of votes for outright victory in Afghanistan's presidential election, Agence France-Presse reported. Google is not developing a browser and won't enter any browser wars with Microsoft and Yahoo!, the Financial Times said. NY Democratic Attorney General Spitzer may bring a civil lawsuit against Aon Corp., the world's second largest insurance broker, for antitrust violations, the NY Times reported. Nu Skin Enterprises(NUS) expects its China sales to grow as much as 20-fold in three to five years, making the country its biggest international market, China Daily reported. Wal-Mart said U.S. sales at stores open at least a year are rising within its forecast of 2-4%, boosted by boys' and girls' wear and bedding, Bloomberg said. U.S. intelligence and law enforcement authorities said no direct evidence has been found to indicate plans for an election-related terrorist attack, Bloomberg said. The Fed can raise rates at a measured pace because U.S. economic growth is "solid" and rising energy costs haven't yet sparked concern about a broader acceleration of inflation, Fed Governor Susan Bies said. President Bush called on Congress to pass legislation he proposed to comply with guidelines set out by the federal commission studying the intelligence failures that led to the Sept. 11, 2001, attacks, Bloomberg reported. Northwestern Japan was jolted by aftershocks after a series of earthquakes killed 23 and injured more than 2,100, forcing thousands more to seek shelter in the deadliest temblor since 1995, Bloomberg reported. The creation of a U.S. insurance regulator is gaining support in Congress and among consumer groups after Spitzer disclosed his probe of improper sales practices, Bloomberg said.
Late-Night Trading
Asian indices are lower, -1.50% to -.50% on average.
S&P 500 indicated -.42%.
NASDAQ 100 indicated -.48%
BOTTOM LINE: I expect U.S. stocks to open modestly lower in the morning on weakness in Asia, worries over U.S. politics and high energy prices. The Portfolio is 75% net long heading into tomorrow.
Sunday, October 24, 2004
Chart of the Week
Dow Jones Transportation Average
Bottom Line: The Transportation Average reached a 5-year high last week and is now only 11.2% below its all-time high set May 12, 1999. Historically, this index is a leading indicator of economic growth. From 5/12/1999 through 3/8/2000 the index plummeted 40.6%, while the major indices rose, correctly predicting the most devastating broad market decline since the Great Depression and ensuing plunge in economic growth that began in early 2000. The Bears and many media pundits suggestion that high energy prices are pushing the U.S. economy towards recession do not correspond with the strength of this energy-intensive leading index.
Bottom Line: The Transportation Average reached a 5-year high last week and is now only 11.2% below its all-time high set May 12, 1999. Historically, this index is a leading indicator of economic growth. From 5/12/1999 through 3/8/2000 the index plummeted 40.6%, while the major indices rose, correctly predicting the most devastating broad market decline since the Great Depression and ensuing plunge in economic growth that began in early 2000. The Bears and many media pundits suggestion that high energy prices are pushing the U.S. economy towards recession do not correspond with the strength of this energy-intensive leading index.
Weekly Outlook
There are a number of important economic reports and significant corporate earnings reports scheduled for release this week. Economic reports include Existing Home Sales(Mon.), Consumer Confidence(Tues.), Durable Goods Orders(Wed.), New Home Sales(Wed.), Fed's Beige Book(Wed.), Initial Jobless Claims(Thur.), Continuing Claims(Thur.), 3Q Actual GDP(Fri.), 3Q Actual Personal Consumption(Fri.) and 3Q Actual Price Deflator(Fri.). Existing Home Sales, Consumer Confidence, New Home Sales, Initial Jobless Claims and 3Q Actual GDP all have market-moving potential.
Ryder Systems(R-Mon.), Pulte Homes(PHM-Mon.), DuPont(DD-Tues.), Procter & Gamble(PG-Wed.), Boeing(BA-Wed.), Sirius Satellite(SIRI-Wed.), Unilever(UL-Wed.), Martha Stewart Living(MSO-Thur.), JetBlue Airways(JBLU-Thur.) and Verizon(VZ-Thur.) are some of the more important companies that release quarterly earnings this week. There are also some other events that have market-moving potential. The JP Morgan Small-cap Conference(Mon.), CSFB Building Products Conference(Wed.) and Prudential Technology Conference(Wed.) could also impact trading this week.
Bottom Line: I expect U.S. stocks to finish the week modestly higher as shares head lower early in the week and then rebound towards week's end on diminishing domestic terrorism fears, optimism over future economic growth and anticipation of an end to the bitter political rhetoric. My short-term trading indicators are giving mixed signals and the Portfolio is 75% net long heading into the week.
Ryder Systems(R-Mon.), Pulte Homes(PHM-Mon.), DuPont(DD-Tues.), Procter & Gamble(PG-Wed.), Boeing(BA-Wed.), Sirius Satellite(SIRI-Wed.), Unilever(UL-Wed.), Martha Stewart Living(MSO-Thur.), JetBlue Airways(JBLU-Thur.) and Verizon(VZ-Thur.) are some of the more important companies that release quarterly earnings this week. There are also some other events that have market-moving potential. The JP Morgan Small-cap Conference(Mon.), CSFB Building Products Conference(Wed.) and Prudential Technology Conference(Wed.) could also impact trading this week.
Bottom Line: I expect U.S. stocks to finish the week modestly higher as shares head lower early in the week and then rebound towards week's end on diminishing domestic terrorism fears, optimism over future economic growth and anticipation of an end to the bitter political rhetoric. My short-term trading indicators are giving mixed signals and the Portfolio is 75% net long heading into the week.
Market Week in Review
S&P 500 1,095.74 -1.12%
Click here for the Weekly Wrap by Briefing.com.
Bottom Line: Market action last week was mixed as HMO and telecom stocks led the S&P 500 and DJIA lower, while software and semiconductor shares boosted the NASDAQ. Last week was not good for the Bulls, however declines were relatively muted considering energy's continuing rise, a tightening of the Presidential polls, mixed earnings reports and steep declines in the HMO sector. Once again, Democratic NY Attorney General Spitzer's widening insurance probe resulted in major losses for unknowing investors and will undoubtedly lead to future job losses in the HMO industry. As I have stated before, executives should be held more personally liable for any illegal actions and the companies themselves less liable, to minimize job losses and investor pain. It is extremely unfair and is a significant burden on the U.S. economy to punish so many innocent people for the actions of a few rogue executives. On the positive side, interest rates fell again, most commodity prices stabilized, technology/small-caps stocks outperformed and the advance/decline line only fell modestly. Measures of investor anxiety were mixed on the week.
Click here for the Weekly Wrap by Briefing.com.
Bottom Line: Market action last week was mixed as HMO and telecom stocks led the S&P 500 and DJIA lower, while software and semiconductor shares boosted the NASDAQ. Last week was not good for the Bulls, however declines were relatively muted considering energy's continuing rise, a tightening of the Presidential polls, mixed earnings reports and steep declines in the HMO sector. Once again, Democratic NY Attorney General Spitzer's widening insurance probe resulted in major losses for unknowing investors and will undoubtedly lead to future job losses in the HMO industry. As I have stated before, executives should be held more personally liable for any illegal actions and the companies themselves less liable, to minimize job losses and investor pain. It is extremely unfair and is a significant burden on the U.S. economy to punish so many innocent people for the actions of a few rogue executives. On the positive side, interest rates fell again, most commodity prices stabilized, technology/small-caps stocks outperformed and the advance/decline line only fell modestly. Measures of investor anxiety were mixed on the week.
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