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Tuesday, September 26, 2006

Market Wrap (Sept. 26, 2006)

DJIA 11,669.39; Up 93.58 (0.81%)
NASDAQ 2,261.34; Up 12.27 (0.55%)
S&P500 1,336.34; Up 9.97 (0.75%)
10YR-Bond 4.585%

With the S&P and DJIA sniffing up against highs again, you have to wonder about how strong the demand is for shares recently. Consumer confidence rose to 104.5 instead of 103, although hosuing prices showed yet more decline. The Federal Reserve Bank of Richmond that showed the region's economy strengthened this month, undermining the notion that the Philly Fed reading's drop was not indicative of the entire US.

The most active stock on the NYSE by far was Time Warner (TWX) with it trading a whopping 65 million shares and closing up 2.5% at $18.60 after Cramer last night said that the analyst calls and what he sees in the restructuring making TWX a straight shot to $26.00..

Eagle Materials (EXP) fell 10.3% to $35.23 because of it giving an intra-day earnings warning for the year, even though the street should have learned to factor it in. Another gypsum wallboard player USG (USG) fell 3.4% with it and closed down at $47.02.

Lennar (LEN) issued an earnings warning, but it closed up 0.1% at $46.95.

Harrah's (HET) fell 4% to $64.65 on a J.P.Morgan downgrade.

Yesterday's exponential MS-related gainer, Acordia (ACOR) rose another massive 29% to $11.00 on 24.5 million shares.

Teva (TEVA) closed down 0.2%at $33.85 after hosting its first branded drug meeting with Wall Streetanalysts today.

Bob Evans Farms (BOBE) actually rallied 0.5% to close at $30.30 after long-time board member and recent Chairman Robert E.H. Rabold died of a heart attack on Monday.

Sharper Image (SHRP) rose 10.25% to $10.33 after its founder was removed as CEO and replaced with turnaround specialist Jerry Levin. The other good news is that we won't have to see his ugly kid on TV commercials any longer.

Major tech names continued their surge higher with intel (INTC) up 2.8% at $19.96, Cisco (CSCO) up 1.1% at $23.50, Oracle (ORCL) up 1.2% at $18.19, Microsoft (MSFT) up 1.1% at $27.25, and Apple (AAPL) up 2.6% at $77.74. You have to wonder how much of this has been quarter-end window dressing.

Chinese medical device maker Mindray Medical (MR) rose to $17.55 after its IPO priced at $13.50.

eBay (EBAY) rose more than 5% to $27.67 in a strong market and on word that it may sell its Chinese operations or pursue other mergers in China.

ADC Telecom (ADCT) rose 2.8% to $14.61 after securing an order from T-Com.

Goldman Sachs (GS) finally broke its up-streak with a whopping $0.01 loss on the day to close at $168.68.

Crocs (CROX) rose 4.7% to $33.66 afgter Cramer touted the show on last night's MAD MONEY.

Jon C. Ogg
September 26, 2006

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