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Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, August 02, 2006

Market Wrap (August 2, 2006)


DJIA 11,199.93; Up 74.20 (0.67%)
NASDAQ 2,078.81; Up 16.82 (0.82%)
S&P500 1,278.55; Up 7.63 (0.60%)
10YR-Bond 4.961%

Mortgage volumes sank to a 4-year low. Oil inventories actually fell more than expectations. The ADP report estimated new month was sort of swept under the rug, and a $40+ billion treasury financing for next week was given a bit of a mum. All in all, the markets closed up. August Fed Fund Futures look to be placing a 39% chance of a Fed Hike next week, so the verdict is out.

Time Warner (TWX) proved it CAN actually post a profit, and it made $1 billion; it also made plans to make some of its AOL services available free for broadband users. TWX rose 2.5% to $16.67.

Pozen (POZN) was the big winner today after signing a development pact with AstraZeneca (AZN) for a pain drug project. POZN rose 39% to $10.48.

Rambus (RMBS) took one in the back of the bus after the FTC decided in a 5-0 vote that the company had illegally obtained a monopoly status; RMBS was halted and then fell 25% to $12.59.

Blue Nile (NILE) also rose a sharp 32% to $31.82 after the company made over $3 million and a net EPS of $0.18 in the quarter, exaggerated by a short squeeze.

Adobe (ADBE) rose 14% to $32.42 after reaffirming prior guidance and as analysts took some interpretations to mean things were going well ahead.

Even the Cuban-influenced stock trade we were the first to point put yesterday rose again today. Herzfeld Caribbean (CUBA) rose another 10.8% to $8.81.

XM Satellite Radio (XMSR) rose 1.2% to $12.34 after signing an advertising pact with Google (GOOG) for its non-music stations, although it had been considerably higher on the open. Its competitor Sirius (SIRI) fell 1.2% to $4.03.

Checkfree Systems (CKFR) fell a sharp 13% to $37.38 after missing earnings estimates.

MasterCard (MA) posted $0.74 EPS vs $0.67 estimates in its first quarter as a public company; MA rose 11% to $49.96. Investor who held from teh IPO must be proud.

Garmin (GRMN) opened up 10% higher after beating earnings and raising expectations, but closed down 1.9% at $88.29.

One of the last few independent CLEC's, Cincinnati Bell (CBB), rose about 14% to $4.50 after it posted $0.09 EPS vs $0.07 estimates and will have positive earnings for the year.

Proctor & Gamble (PG) rose 4% to $58.30 after beating earnings expectations and offering robust sales forecasts for the coming quarter.

Herley Industries (HRLY) rose a sharp 20% to $12.62 at the end of the day afetr word of a $15.00 buyout coming its way.

NorTel (NT) rose about 5% to $2.05 on yesterday's continuing market chatter from and from that hinted it may sell its wireless business to Alcatel.

Avon Products (AVP) continued its slide by falling another 5.8% to $27.02.

Despite really missing estimates, Wynn Resorts (WYNN) rose 8.7% to $67.08.

Ford (F) rose 6% to $6.99 on market talk and reports that it may sell some of its brands. Jaguar was the name most thrown around as for sale.

Jon C. Ogg
August 2, 2006

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