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Monday, August 14, 2006

Market Wrap (August 14, 2006)

DJIA 11,097.87; Up 9.84 (0.09%)
NASDAQ 2,069.04; Up 11.33 (0.55%)
S&P500 1,268.21; Up 1.47 (0.12%)
10YR-Bon 5.001%

Today the markets got to react to 2 solid pieces of good news, but all the gains were cut to a barely positive day on a "sell the news" attitude in a quiet August trading day. We had the good news of a cease-fire in Lebanon between Israel and Hezbollah. We also got to digest that 200,000 of BP oil from Prudhoe Bay in Canada will ramin on, which means that they will only have half of the oil removed from the US market.

On the news out of Prudhoe Bay shares of BP (BP) rose a slim 0.1% to $69.36 and BP Prudhoe Bay Royalty Trust (BPT) fell 1.6% to $76.68.

Oracle (ORCL) rose over 2% to $15.31 after it boosted control of Indian software firm I-Flex for $125 million.

Cisco (CSCO) rose over 2.9% to $20.11 after Barron's noted on a coverstory that it could go up another 25%.

Neurochem (NRMX) rose a sharp 21% to $11.56 after getting an approvable letter out of the FDA.

Redback Networks (RBAK) rose about 8% to $16.40 on various mixed chatter today.

GM (GM) rose 0.3% to $30.18 after reaching a $10 billion funding arrangement with Citigroup for its GMAC unit, although Bear Stearns vut the rating pre-market. Ford (F) rose about 6.5% to $7.85 after Bear Stearns raised the rating to an outperform.

ADR's of Embraer (ERJ) rose 0.2% to $33.90 after it posted higher earnings from its jet sales.

Despite the delisting notice sent to Apple (AAPL) Friday, its shares closed up 0.4% at $63.89 on a request for an extension and to resolve the issues.

HealthSouth (HLSH) rose over 10% to about $4.50 after it posted narrower losses and announced it was exploring strategic alternatives and would spin-off some units.

Pepsi (PEP) rose 0.9% to $63.92 after its CFO Indra Nooyi was named as the replacement for the retiring CEO, who announced he would retire on October 1.

As terror levels in the UK were lowered and after some restictions in the US were eased, airlines responded. Continential (CAL) rose 1.6% to $22.52, AMR (AMR) rose 2.3% to $19.27, and UAL (UAUA) rose 1.8% to $22.74.

Tenet Healthcare (THC) rose 7% to $7.55 after upgrades from Raymond James and Jefferies.

FileNet (FILE) fell 1.7% to $35.36 after a counterbid did not immediately surface after the IBM bid last week.

Jon C. Ogg
August 14, 2006
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