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Contributors: Douglas McIntyre Jon C. Ogg

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Friday, August 04, 2006

Market Wrap (August 4, 2006)

Stock Tickers: ICGN, AAPL, GTW, CVTX, HOV, BMY, BOT, CME, CROX, AMCC, CVTX, CECO, PVTB, OSIR, BGH, TRLG, ORCI, IUSA

Daily Closing Levels:
DJIA 11,240.35; Down 2.24 (0.02%)
NASDAQ 2,085.05; Down 7.28 (0.35%)
S&P500 1,279.36; Down 0.91 (0.07%)
10YR-Bond 4.90%

Interest rate market pundit Bill Gross of PIMCO said the Fed would definitely pause rate hikes next week after unemployment was a up to 4.8% and on a mere 113,000 non-farm payroll jobs number. STocks closed mixed but mostly lower after they had been up most of the day and up sharply at the open, while bonds maintained their levels. Oil fell 1% to close at $74.76 on the day, and word that an energy hedge fund blowing up called Mother Rock probably didn't hurt anyone's feelings at the pumps.

Icagen (ICGN) fell over 70% to $1.12 after halting enrollment in its sickle cell trials. This was the loser of the day.

Gateway (GTW) fell another 12% to $1.40 after it swung another loss for the quarter. It earned -$0.02 EPS vs expectations of $0.02.

Apple (AAPL) said it would delay its quarterly filing and that it would likely have to restate earnings going back for 4 years because of write offs it will have to take after reviewing its options strategy. AAPL fell 1.95% to $68.23 after analysts defended shares, but it had been down almost 5% pre-market.

Hovnanian (HOV) lowered guidance, but managed to only fall 1.5% to $29.07.

Bristol-Myers Squibb (BMY) fell yet another 4.5% to $22.70 after reports of Medco releasing a generic version of Plavix. This is in that ongoing case where the BMY settlemet with Apotex was essentially blocked.

The Chicago Board of Trade (BOT) actually had a trading halt on its electronic systems because of a glitch but this was for a short period of time. Its competitor the Chicago Mercantile Exchange (CME) was named as the replacement for KMG in the S&P 500 Index. BOT closed esstntially flat at $127.29 and CME closed up 6% at $487.00.

Crocs (CROX) blew past earnings yesterday and raised guidance but it managed to close lower by 6% at $27.14 after word that its pending secondary allowing insiders to sell shares would come within the coming days. It had traded as high as $30.75.

Applied Micro Circuits (AMCC) rose 6.7% to $2.54 after acquiring a company called Quake for $69 million, despite it receiving another subpoena over option.

CV Therapeutics (CVTX) fell over 10% to close at $11.58 after posting wider losses.

Career Education (CECO) fell a whopping 29% to close at $19.58 after posting significantly under-plan earnings.

Privatebancorp (PVTB) fell 4% to close at $45.28 after acquiring Piedmont Bancshares in Atlanta for $46.6 million, compared to PVTB's $960 million current market cap.

We had 2 IPO's today. Osiris Therapeutics (OSIR) priced its IPO at $11.00 for 3.5 million shares. OSIR closed at $11.00. Buckeye GP (BGH) 10.5M share IPo priced at $17.00, BGH closed at $16.29.

True Religion (TRLG) rose 7.9% to $18.90 after hiring Goldman Sachs to explore strategic alternatives.

Opinion Research (ORCI) was halted at the close because InfoUSA (IUSA) decided to acquire it for $12.00 per share. It closed the day at $6.20. IUSA was hardly trading after-hours.

TGIF! Have a nice weekend.

Jon C. Ogg
August 4, 2006
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