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Wednesday, August 16, 2006

Market Wrap (August 16, 2006)


DJIA 11,327.12; Up 96.86 (0.86%)
NASDAQ 2,149.54; Up 34.53 (1.63%)
S&P500 1,295.43; Up 9.85 (0.77%)
10YR-Bond 4.871%

Today the markets took another sigh of relief on the inflationary front as CPI for July posted 0.4% and the core CPI on an ex-food and ex-energy basis was only +0.2%. Crude prices ended soft as Middle East tensions remained low.

Peabody Energy (BTU) and Arch Coal (ACI) rose on comments after Jim Cramer from MAD MONEY said on CNBC that they were dirt cheap, and even cheap enough one of the integrated oil companies should acquire them. BTU rose over 6% to $47.80 and ACI rose 4.8% to $36.39.

The Prudhoe Bay pipeline had to be closed for two incidents, so BP (BP) fell 1.8% to $68.54 and BP Prudhoe Bay Royalty Trust (BPT) fell 2.5% to $76.31.

XM Satellite (XMSR) rose 4.1% to $11.47 after GM announced that it was reducing the unit price inclusion for XM down to $199 in 2007 models.

Taser (TASR) rose over 7% to $7.67 after it received a $7+M order for Tasers from the LAPD, as LAPD officers discovered that tasering suspects requires less beatings and generates less lengthy video footage that can be used as evidence against their police officers.

Xilinx (XLNX) rose 10% to $22.72 after it said it was ending the options probe and founf no evidence of fraud.

IPCS (IPCS) rose yet another 4.8% to $51.07 after winning its case against against Sprint Nextel in court yesterday.

Applied Materials (AMAT) rose only 0.1% to $15.71 after beating earnings expectations and guiding sales flat; its CFO is retiring.

Qualcomm (QCOM) rose 6% to $37.66 after Merrill Lynch added it to its Focus One List, which in dollar terms is probably the best analyst call of the day.

Abercrombie & Fitch (ANF) rose 14% to $63.29 after it posted $0.72 EPS vs $0.71e.

InnerWorkings (INWK) actually rose to $10.40 after it priced its IPO at the high-end of the range of $9.00.

Jones Apparel (JNY) fell 1.5% to $28.64 after it said it was ending a search to be acquired, as no bidders were willing to pay up.

Leap Wireless (LEAP) rose 5% to $45.03 after finally pricing its secondary at $42.00 per share.

Pacific Ethanol (PEIX) rose 5.75% to $16.38 after one of its units entered a pact with Front Range Energy.

Garmin Ltd. (GRMN) somehow managed to rise 3.6% to $46.32 on the day its 2-1 stock split became effective.

Daktronics (DAKT) fell a whopping 28% to $22.24 after its EPS target fell short and it guided lower for next quarter, a non-non for a high multiple company where the street expects a lot.

Charming Shoppes (CHRS) posted lower earnings, but it wasn't as bad as expected and guidance was not so cautionary; CHRS rose 11% to $12.47.

UAL Corp (UAUA) actually rose over 5% to $24.60 after a 50+ year old female passenger had a panic attack that caused the plane to land in Boston that was en route from London to Dulles.

Fluor (FLR) rose 2.7% to $89.12 after getting a 2-year FEMA disaster assistance pact.

Optical Cable (OCCF) fell 8.9% to $5.28 after it said a $6.00 tender offer from Superior Essex was inadequate even though the stock was at the lows of the year.

Jon C. Ogg
August 16, 2006

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