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Monday, September 11, 2006

Market Wrap (Sept. 11, 2006)

DJIA 11,396.84; Up 4.73 (0.04%)
NASDAQ 2,173.25; Up 7.46 (0.34%)
S&P500 1,299.55; Up 0.63 (0.05%)
10YR-Bond 4.799%

This was a difficult day to want to keep the media playing. Unfortunately, today was the 5th anniversary of the September 11, 2001 attacks that changed our country and the world. We had another Aiman Alzawahri video tape calling for attacks in Israel and attacks on Western targets throughout the Middle East, and of course we had numerous ceremonies and "recalling 9/11" interviews. There were also comments from the Boston and St. Louis Fed Governors to digest.

Dell (DELL) can consider itself somewhat lucky. The company announced they were delaying the quarterly filing, had to suspend share buybacks, and will cancel its analyst meeting this week. Shares had been down 4% pre-market and only closed down 2% at $21.19.

Freescale (FSL) rose a sharp 20% to $37.06 on word that it has an offer from two private equity consortiums valued at some $16 Billion.

Bristol-Myers Squibb (BMY) rose 0.9% to $23.39 one day ahead of its board meeting.

Genetech (DNA) fell 4.6% to $78.33 as the FDA requested more data for an expanded approval to metastatic breast cancertreatment, which translates to a delay in the drug being on the market for that use.

CBS (CBS) shares rose 2.8% to $29.26 on market talk that it would announce a $1 Billion share buyback plan to bolster its stock.

As oil prices fell yet again, shares of ExxonMobil (XOM) fell another 2.7% to $64.99 and the Oil Services HOLDRs fell 4.3% to $125.80.

Aetna (AET) rose 5% to $38.43 after medical losses were not as harsh as originally thought.

Redback Networks (RBAK) fell another 8% to $13.09 on another downgrade after last week's contract miss.

Intel (INTC) was largely unfased on word that the EU had opened an inquiry into its blockage of AMD chips to be included in many subsystems. INTC shares slid 0.2% to $19.40.

Scottis Re (SCT) rose 9.9% to $10.23 after it dosclosed it was on track to reach a sale or to pursue other favorable actions after it had core loss problems creating a mid-summer implosion.

Gold Fields (GFI) fell 6.9% to $18.24 after it was announcing $2.5 Billion in different acquisitions. Barrick Gold (ABX) fell 5.5% to $29.63 as it was selling its 50% stake in South African mines to it. Neither was helped by falling commodity prices.

Jon C. Ogg
September 11, 2006
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