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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, July 17, 2006

Market Wrap for July 17, 2006

DJIA 10,747.36; Up 8.01 (0.07%)
NASDAQ 2,037.72; Up 0.37 (0.02%)
S&P500 1,234.49; Down 1.71 (0.14%)
10YR Bond 5.069%

Today was another market day still dominated by Israel versus Hezbollah/Lebanon. Or is it really against Syria? Or is it really against Iran? We are not at all trying to make light of the situation, but the headlines would leave to think we are constantly teetering back and forth from ceasefire to escalated war. After this afternoon we will be well entrenched into earnings season and will start to have an idea of how good or how bad the real tech sector is doing. Despite the fact that markets aren't getting to act based on how they would normally prefer to act, we actually ended up with a mixed day at the close.

Citigroup (C) fell 2.4% to close at $46.40 after earnings fell marginally short of estimates after a rounding created more of an earnings miss rather than a "met expectations" as it previously seemed. Citigroup fell

The "Dog of the Day" award goes out to Threshold Pharmaceuticals Inc. (THLD) after it halted development ofr its lead candidate afetr Phase II/III failed to meet primary endpoints; THLD lost over half of its value to close down over 50% to $1.51.

McDonalds (MCD) rose over 5% to close at $34.75 after marginally raising its Q2 estimates.

Phelps Dodge fell almost $2.00 to close at $77.80 after boosting the cash portion for its fight with Xtrata to win the buyout of Falconbridge.

Harley Davidson (HDI) managed to miss out on the carnage faced in the discretionary spending that affected watecraft companies last week. HDI met earnings and actually said that its orders in the quarter would be at or a tad above on "units to be shipped"; HDI closed up over 1.5% at $52.15.

Eaton Corp (ETN) initially beat earnings, but its shares Fell over 4% to close at $65.01 after forecasting lower than expected guidance for the next quarter.

Mattel (MAT) actually made almost double the profits expected, so its shares rose over 10% to close up at $17.61.

Shares of Mothers Work (MWRK) closed up over 3.7% higher at $31.92, and that was after the company had already forecast higher same store sales earlier in the month.

We saw what seemed to be an influential research call in the tech sector this morning as ThinkEquity started Dell (DELL), Hewlett Packard (HPQ), and (IBM) IBM with "Sell" ratings; DELL closed odwn another 1.5% at $21.57; IBM closed up a maginal 0.2% at $73.71; HPQ closed up 1.4% at $31.20.

Adtran (ADTN) rose over 3% to close at $21.11 ahead of its earnings.

There was originally a post saying that Yahoo! earnings were today, but this was something that had been predisgnated and was included on error. Get ready for the earnings waves for the next three weeks as we'll have over 200 earnings reports each day.

Jon C. Ogg
July 17, 2006

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