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Wednesday, August 23, 2006

Market Wrap (Aug. 23, 2006)

Stock Tickers: BEAS, F, MRK, IBM, ISSX, KBH, HD, VIA, RAD, S, CME, ANDE, BG, RGS, WY, VG, GTW, NSM, INTU

DJIA 11,297.90; Down 41.94 (0.37%)
NASDAQ 2,134.66; Down 15.36 (0.71%)
S&P500 1,292.99; Down 5.83 (0.45%)
10YR-Bond 4.813%

BEA Systems (BEAS) fell 1.6% or $0.21 to $12.85 after it announced it was buying a private software company called Flashline for undisclosed terms.

Ford (F) rose 4.4% to $7.75 after disclosing that it would offer 0% financing for its trucks; also it was siad to be asking Carlos Ghosn to talk to them if he doesn't do anything with GM.

Merck (MRK) rose 1.7% to $40.43 after comparing COX-2 inhibitor Arcoxia at lower doses showed that the results for heart risk were actually similar to on-market drugs that are not COX-2's.

KB Homes (KBH) fell 6% to $40.55 after several issues. The CEO has what appears to be an obviously coincidental options granting at low prices, the company didn't like the existing home sales inventory numbers ay over 7 months, and JPMorgan downgraded it.

Home Depot (HD) fell 1.3% to $33.61 on poor housing numbers.

Viacom (VIA) rose 0.5% to $36.63 after Sumner Redstone publically terminated actor Tom Cruise from his Paramount contract because of "public antics."

Sprint NexTel (S) actually rose as much as 2.1% to $16.42 on what was already positive day, but Jim Cramer said this should stop falling as there is a value to the asset.

Rite-Aid (RAD) rose 7.8% to $4.70 after reports were out that they may actually acquire Eckerd.

Chicago Mercantile Exchange (CME) fell $5.40, or 1.2%, to $446.00 after Prudential started the exchange with an Underweight rating.

The Anderson's (ANDE) managed to rally 3.6% to $38.61 after it finally priced its 2.3 million share secondary offering at $37.00 and got that out of the way.

Borders Group (BGP) fell 1.5% to $19.95 after the new CEO lowered guidance after earnings.

Regis (RGS) fell 4.6% to $34.51 after another poor earnings turnout.

Wyerhaeuser (WY) rose 2.2% to $61.37 after saying it would combine its copy paper unit with Domtar in Canada and offer it out in a tax-free manner to shareholders, but the exact plan will depend on market conditions at the time.

Vonage (VG) actually rose 2.7% to $6.81, yes they can actually rise sometimes, after Bear Stearns started coverage with a Peer Perform rating.

Gateway (GTW) rose another 12% to $1.94 after the former eMachines head offered to acquire the retail Gateway store operations for about $450 million.

Intuit (INTU) fell 1.7% to $30.56 after reporting in-line earnings and offering guidance.

National Semiconductor (NSM) dodged a bullet as its shares rose 3.6% to $23.40 after it issued an earnings warning after the close yesterday.

Jon C. Ogg
August 23, 2006
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