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Contributors: Douglas McIntyre Jon C. Ogg

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Tuesday, August 08, 2006

Market Wrap (August 8, 2006)


DJIA 11,173.59; Down 45.79 (0.41%)
NASDAQ 2,060.85; Down 11.65 (0.56%)
S&P 500 1,271.48; Down 4.29 (0.34%)
10YR-BOND 4.923%

OK so the FED finally told us what we all wanted to know. This was the first pause after 17 consecutive meeting hikes. The FOMC did say inflation had elevated but they see the pressures moderating over time. This was not unanimous as Fed Governor Lacker said he would prefer to hike by 0.25% to get it over with. Unfortunately the market couldn't make its mind up if no more Fed was good, or if that meant the economy was slowing enough that the business metrics would mean slower earnings.

Atmel (ATML) rose over 5% to $5.15 after the company named a director CEO, finally filling that position.

Aircastle (AYR) rose to $26.52 after its IPO of 9.09 million shares priced at $23.00.

Aramark (RMK) fell 1% after a higher bid that was finally accepted came at a sub-market price. RMK closed down 1.4% to $32.58.

Aleris (ARS) rose over 27% to $52.76 after it agreed to be acquired by Texas Pacific in a private equity buyout.

Despite Sprint (S) signing a WiMax 4G access deal with Intel, Motorola, and Samsung' Sprint (S) fell 1.9% more to $16.62.

Despite all of the recent trouble for generic drug makers and the company in particular, Teva (TEVA) handily beat earnings and rose a big 5% to $35.72. (PCLN) beat earnings and rose a sharp 16% to $30.84.

In what is becoming a routine comment, Bristol-Myers Squibb (BMY) fell yet another 6.8% to $21.21 after Apotex said it would begin shipping generic Plavix.

Tekelec (TKLC) rose 15% to $11.92 after surprisingly posting positive income when the street was expecting an EPS loss for the quarter.

Charterf Communications (CHTR) fell another 11% to $1.17 after it reported wider losses.

Washington Group (WGII) posted huge upside at $0.94 EPS vs $0.64e, but it was expected to outperforn; WGII rose 1.6% to $56.30.

Sara Lee (SLE) fell 2.2% to $16.62 after its forward margin and growth targets would be light; it set the terms for the Hanesbrands (HBI) spin-off at one HBI share per 8 SLE share.

California Pizza Kitchen (CPKI) rose 4% to $27.35 after lower earnings met estimates; and after Cramer interviewed the CEO and said it was a Buy.

Brocade (BRCD) announced it was acquiring McData (MCDTA); BRCD fell 19% to $4.97 and MCDTA rose 5% to $3.29. Those guys should maybe have considered a different deal.

Loudeye (LOUD) rose well over 100% to close at $4.34 after Nokia announced it would acquire the company, in a transaction valued at $60 million.

Forest Oil (FST) rose 1.8% to $34.53 after handily beating earnings expectations.

Bausch & Lomb (BOL) fell 0.7% to $45.99 after disclosing that the company would cut forecasts and delay filings over the charges associated with ReNu with MoisturLoc; shareholders should consider themselves lucky since the stock had been down as much as over 10% pre-market.

Infineon's (IFX) spin-off of its DRAM unit Qimonda (QI) is reportedly going so poorly that the IPO is rumored to be cut in price range and in the share count. IFX lost 3% to close at $10.50.

It wouldn't be fair to leave out BP and the rest on the day after the Prudhoe Bay pipleline closure is taking 400,000 of sweet crude off the US market. BP plc (BP) fell another 0.4% to $70.16 and BP Prudhoe Bay Royalty Trust (BPT) fell another 4% to $73.75.

It also wouldn't be fair to leave out Google (GOOG) and NewsCorp (NWS). MySpace after yesterday's close put Google as the search engine of choice after the bidding process put Google on top. GOOG only closed up 0.7% to $380.56.

Jon C. Ogg
August 8, 2006

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