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Thursday, July 27, 2006

Market Wrap for July 27, 2006

Stock Tickers: MSFT, NTBK, BMY, BG, VCI, SYMC, AKAM, XOM, XMSR, SIRI, BRCM, WDC, WIND, WBSN, BEAS, TIBX, FILE, AVID, ACTI

DJIA 11,100.43; Down 2.08 (0.02%)
NASDAQ 2,054.47; Down 15.99 (0.77%)
S&P500 1,263.19; Down 5.21 (0.41%)
10YR-Bond 5.04%

Microsoft (MSFT) closed down 2% at $23.87 after saying Vista would likely come out on time in the analyst meeting, and after having a malfunction during their speech to text demonstration.

The analyst call of the day is Keefe Bruyette & Woods downgrade of NetBank (NTBK), NTBK closed down 6.6% at $5.31.

Bristol-Myers Squibb (BMY) fell a sharp 7.5% at $24.04 after actually beating earnings estimates. Unfortunately they have a DOJ issue over generic Plavix and the settlement they agreed to with Apotex in Canada.

Bunge (BG) recovered a 5.4% to $54.36 after beating earnings expectations and giving easily liveable guidance for the rest of the year.

Valassis (VCI) rose 1.8% to $20.32 after actually issuing an earnings warning. Maybe things won't get worse, or maybe the street thinks they have an acquirer in the wings.

Symantec (SYMC) beat earnings estimates last night, and its short interest had climbed from the month before, so it was a springloaded runner today. SYMC closed up 9% at $17.26.

Comcast (CMCSA) beat its earnings expectations and closed up almost 5% at $34.20.

Akamai (AKAM) was one of the huge winners on the day afterbeating estimates yesterday; AKAM closed up 22.8% at $36.86.

Exxon Mobil (XOM) closed close to flat after posting its second $10+ billion net income.

XM Satellite Radio Holdings (XMSR) posted wider losses and lowered their year-end subscriber targets, but managed to close up 4.9% at $10.87. Its rival Sirius (SIRI) also closed up -/25% at $3.97.

Several mid-cap and large-cap tech stocks ran after Jim Cramer touted them as takeover targets on his MAD MONEY show yesterday. Here is the list with stock changes: Broadcom (BRCM) up 4% at $22.92, Western Digital (WDC) down 0.8% at $16.71, Wind River (WIND) down 1.4% at $8.02, Websense (WBSN) down 0.8% at $18.31, BEA Systems (BEAS) down 1.2% at $11.76, Tibco (TIBX) up 0.3% at $7.71, Filenet (FILE) down 1.1% at $30.73, Avid Tech (AVID) down 0.9% at $34.30, ActivIdentity Corp. (ACTI) up 3.3% at $4.70.

Tomorrow we have the Preliminary Q2 Gross Domestic Product-GDP report. This will show us how we did in the quarter and how the price deflator went. Expectations are approximately 3% (down from 5.6% in Q1) for nominal GDP. With tomorrow being friday, the earnings should peter out around 10:00 AM with no major reports scheduled for after the close. That should leave the financial markets trying to predict the outcome of the fighting in Israel-Lebanon.

Earnings tonight: AYE, ADBL, CLS, CENX, CF, CSTR, DRIV, FFH, FRNT, IOM, KCP, KLAC, LPNT, MCK, TUNE, NYX, RSYS, SOHU, SPF, SRCL, THQI, VLCM, WEBM, WDC, & YRCW

Jon C. Ogg
July 27, 2006
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