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Contributors: Douglas McIntyre Jon C. Ogg

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Friday, September 08, 2006

Market Wrap (Sept. 8, 2006)

DJIA 11,392.11; Up 60.67 (0.54%)
NASDAQ 2,165.79; Up 10.50 (0.49%)
S&P500 1,298.92; Up 4.90 (0.38%)
10YR-Bond 4.771%

Falling oil prices helped stocks today, and that is no doubt. We can also thank Japan for keeping rates steady overnight a low 0.25%.

Wal-Mart (WMT) and Home Depot (HD) were of no correlation with each other today; WMT rose 2.5% to $46.72 and HD fell 0.15% to $34.28.

Sony's (SNE) PS3 cut shipments of PS3 was offset by IBM shipping miocroprocessor chips to Nintendo for its November launch of its Wii console. EA (ERTS) was up 35 to $52.51; THQ Interactive (THQI) was up 6% to $26.95 on a positive research note; even Sony (SNE) was up 0.3% to $42.53.

Broadcom (BRCM) now says it will have to double its option charges to about $1.5 Billion after its review is still going; BRCM fell 1.3% to $26.09.

Lennar (LEN) fell 1% to $42.71 after it came clean and fessed up that it would also miss earnings in the homebuilder slump. Can you recall the day when EVERYONE wanted to own these names?

AirTran (AAI) lowered its guidance and paid the price for it; AAI fell 11% to $9.48.

Despite the H-P (HPQ) board worries about who ordered what violation of privacy, HPQ shares rose another 2% to $36.17.

Burger King (BKC) rose a sharp 3.9% to $15.24 after Business Week featured it as being a good value.

McDonalds (MCD) rose 2.6% to $37.50 after it announced it was selling more Chipotle (CMG) shares and commencing its share tender on the spin-out of Chipotle (CMG) shares. CMG wasn't crazy about this news because of the extra float coming to market, but that shows that the street is not efficient. CMG fell 3.8% to $47.92.

Shares of Websense (WBSN) rose 5% to $21.20 on rumors that it may be a stock in-play to be acuired now (again); it has a 27 P/E ratio and a $999 million market cap.

Credit Suisse announced a rating switcheroo in bookstores with an upgrade of Borders (BGP) and a downgrade of Barnes & Noble (BKS); BGP rose 7% to $20.60 and BKS fell 0.06% to $35.72.

Broadwing (BWNG) rose 2% to $11.84 after Jefferies started it with a Buy rating, although the stock experienced what technicians call a "gap and crap" since it had been up 5% earlier in the day.

Lucent (LU) actually fell 0.4% to $2.25 after holders on both sides have approved the Alcatel merger.

Amazon (AMZN) also rose 2.6% to $30.51 after unveiling its online movie download system called "UnBox," although if you ask me this looks only moderately attractive to anyone that isn't an an addict.

Have a great Weekend!

Jon C. Ogg
September 8, 2006

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