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Wednesday, September 20, 2006

Market Wrap (Sept. 20, 2006)

DJIA 11,613.19; Up 72.28 (0.63%)
NASDAQ 2,252.89; Up 30.52 (1.37%)
S&P500 1,325.17; Up 6.86 (0.52%)
10YR-Bond 4.729%

As expected, the FOMC decision to keep rates unchanged, was a moot point. We still don’t really know if we are teetering on a soft landing or something worse. Falling energy prices seem to keep helping alleviate fears that the US consumer will be dead on the low-end, and a jump in finished oil product inventories this last week pulled oil prices under $61.00 per barrel.

Bear Stearns actually went out and raised its country weighting on Thailand today, saying the coup may be good in the end. Since the Thai government and markets were closed for a “government holiday” it didn’t get too noticed by US investors. The Thai Fund (TTF) and the Thai Capital Fund (TF) were not traded today.

Oracle (ORCL) was the winner of the day after beating earnings after yesterday’s close. It beat all street estimates and closed up 11.1% at $17.93, but traded 200 million shares.

As oil slid, so did oil stocks. The Oil Services HOLDRs (OIH) closed down 3.6% at $122.51 and shares of (XOM) closed down 2.1% at $64.12.

Morgan Stanley (MS) rose 0.7% to $72.35 after beating its earnings targets.

Knight Capital Group (NITE) rose 2.5% to $17.88 after Investors Business Daily said the company was still doing well. That is in direct contrast to its most recent trading numbers, but they have a wide reach to investors at IBD.

Hiland Holdings GP (HPGP) closed up at $19.25 after its IPo priced at $18.50.

Level 3 (LVLT) continued its YouTube-related rise going up 3.5% to $5.36.

Dell (DELL) fell 0.5% to $21.50 after ThinkEquity said that its channel and street checks indicate that the company could guide PC shipments lower again; ThinkEquity reiterated its “sell” rating.

Despite its CFO resigning over the options scandal, shares of Broadcom (BRCM) managed to close down only 0.07% at $27.97. Its shares had been down over 2% pre-market.

BEA Systems (BEAS) rose 8.5% to $15.92 in conjunction with ORCL’s rise, and after a strong presentation.

Amgen (AMGN) rose 2.2% to $70.98 after signing a research pact with Yeda Research, the Israeli group that recently won the Erbitux case from Imclone (IMCL). Imclone (IMCL) rose 1.1% to $29.50 after Carl Icahn was highly vocal calling for change at the company’s annual meeting.
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