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Tuesday, July 18, 2006

Market Wrap for July 18, 2006

DJIA 10,799.23; Up 51.87 (0.48%)
NASDAQ 2,043.23; Up 5.50 (0.27%)
S&P500 1,236.86; Up 2.37 (0.19%)
10YR-Bond 5.13%

Weak retail numbers from Target didn't stop a rally today. We are now well into earnings season, although we will have 200+ companies reporting on most days overthe next three weeks. Tomorrow Fed chairman Bernanke speaks in his semi-annual speech at what used to be the Humphrey-Hawkins Testimony, and the thought that the current slowdown may take the Fed off the table. That may be odd since Fed Fund Futures showed well over a 60% chance of a tightening after the PPI numbers this morning. All eyes are on Israel and the Middle East and today's current thought was that this will end fairly soon and will not escalate into a fight that brings in Syria or Iran. Oil fell back to $73.90, under the pre-Israel news from last week.

We had three DJIA components report pre-market. United Tech (UTX) rose 1.5% to close at $58.88 after beating earnings expectations; and while J&J (JNJ) beat earnings, it was before charges so JNJ closed down 0.6% at $60.51. Coca-Cola (KO) rose 1.8% to close at $43.49 after beating earnings yet again and after being dead money for so long.

Intel (INTC) actually caught a bid afterCaris raised the rating and after RBC said the shares were at or nearing its inflection point. INTC rose 2% to close at $18.21.

Microsoft (MSFT) rose 1.2% to close at $22.75 after announcing a Linux compatibility partnership with a private company and after announcing a telecommunications central aggregation pact with NorTel (NT); NT also rose 6% to $2.08.

Finisar (FNSR) was batter down 10.3% to close at $2.69 on no real organic news on the company, although it was even worse down over 15% before Deutsche Bank defended the stock.

Sanmina (SANM) closed down over 11% at $3.79 after coming clean and lowering guidance.

Ameritrade (AMTD) and Schwab (SCHW) both rose after beating earnings projections. AMTD rose 6.9% to close at $14.59 and SCHW rose 0.5% to $14.34. Even E*Trade (ET) rose 2.1% to close at $20.85 in conjunction.

Target (TGT) fell another 4.2% to close out at $45.51 after lowering its s-s-s range of 4-6% to 3-4% growth.

Marvell (MRVL) lost another 4.5% to close at $36.59.

Home Depot (HD) fell yet another after Jim Cramer poo-poo'd the name saying it was lagging and losing to low's (LOW), LOW closed down 0.6% at $27.77.

Centene (CNC) was a huge loser closing down over 35% at $13.62 after it gave a bad guidance announcement pre-market.

Lower oil prices hurt most oil companies, with some mixed on the day: Schlumberger (SLB) down 1.3% at $62.72, Exxon Mobil (XOM) closed up 0.9% at $64.62, and Halliburton (HAL) closed down over 3%at $34.05.

Winstream (WIN) closed up 4.4% at $21.01 after its trading debut in a spin-off as it was instantly included in the S&P 500 Index. Its trading range today was $11.13 to $12.50.

Jon C. Ogg
July 18, 2006

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