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Contributors: Douglas McIntyre Jon C. Ogg

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Friday, September 22, 2006

Market Wrap (Sept. 22, 2006)

DJIA 11,508.10; Down 25.13 (0.22%)
NASDAQ 2,218.93; Down 18.82 (0.84%)
S&P500 1,314.78; Down 3.25 (0.25%)
10YR-Bond 4.597%

What is the translation of falling bond yields and the stock market not going up? Stock traders fearing worse than a soft landing. Oil prices fell over $1.00 per barrel today on concerns of a slower economy. Light sweet crude for November delivery declined $1.07 to $60.52 a barrel in afternoon trade on the New York Mercantile Exchange. November Brent crude on London's ICE futures exchange declined 64 cents to $60.70 a barrel. Can you smell the $50’s?

Starbucks (SBUX) closed at break-even at $34.01 after announcing an average price hike of $0.05 per coffee beverage, and after Cramer called for a “mom-back” buy ahead of the last hour of trading..

Boston Scientific (BSX) fell a sharp 9% to $14.85 on over74 million shares after it lowered guidance again; weasel analysts downgraded it in droves after missing the news. Angiotech (ANPI) fell 11% to $9.30 as it is BSX’s coated stent polymer provider.

Tribune (TRB) continued its rise with another 6% gain to 33.99 after it said it is officially reviewing alternatives. Conversely, the New York Times (NYT) fell 4.5% to $21.79 after it had lower advertising numbers and would reduce more headcount.

Ruth’s Chris Steak House (RUTH) fell 1.8% to $18.76 despite Jim Cramer featuring it as a Buy on CNBC’s Mad Money last night.

Jetblue (JBLU) fell 1.4% to $9.72 after its slightly lower guidance.

DivX (DIVX) was the winning IPO today. It rose to $18.70 versus its $16.00 pricing above-the-range of $12 to $14 per share.

CommVault (CVLT), another IPO, rose to $17.00 after pricing its 11.111 million share IPO at $14.50, at the top of its range.

Yesterday’s strong IPO of Riverbed Technology (RVBD) continued its rise up 9% to $16.75.

Nike (NKE) rose 4.7% to $86.36 after beating its earnings expectations.

3Com (COMS) fell 1.5% to $4.49 after missing its top-line revenue projections, but it had been down 5% pre-market.

Palm (PALM) shares rose 4% to $15.09 after beating reduced estimates from its prior earnings warning.

JDS-Uniphase (JDSU) rallied 0.9% on the day to $2.17 as the company tried the reverse 1 for 8 stock split trick.

Yahoo! (YHOO) broke its losing streak by closing up 0.7% at $25.52.

Time Warner (TWX) closed up 1.3% to $17.73 in conjunction with Tribune.

Everyone have a great weekend!

Jon C. Ogg
September 22, 2006

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