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Contributors: Douglas McIntyre Jon C. Ogg

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Friday, September 15, 2006

Market Wrap (September 15, 2006)

DJIA 11,556.12; Up 28.73 (0.25%)
NASDAQ 2,235.42; Up 6.69 (0.30%)
S&P500 1,319.56; Up 3.28 (0.25%)
10YR-Bond 4.798%

Today was another positive day, although buying was moderate on decent volume. CPI rose only to +0.2% as expected and oil didn't rally much, making the oil sell-off almost 20% from its peak. This put the DJIA within striking distance of new highs.

The Intercontinental Exchange (ICE) rose 15% to $74.39 after it made the awaited $1 Billion cash and stock acquisition offer for the NYBOT. The CBOT (BOT) also rose 2.8% to $3.45 in conjunction with the news. The NYSE (NYX) rose 8.5% to $67.13.

Adobe (ADBE) was one of the big winners gaining 9.9% to close at $37.00 on the day after beating previously lowered expectations.

Ford (F) fell a sharp 11% to $8.02 after it planned 14,000 cuts and afetr Merrill Lynch cut its rating to a Sell.

DaimlerChrysler (DCX) fell 6.7% to $49.36 after it gave an earnings warning.

Microsoft (MSFT) closed up 1.9% to $26.85 one day after it unveiled its Zune media player, and as key analyst Rick Sherlund of Goldman Sachs raised the price target from $30 to $33 per share.

Knight Capital (NITE) fell 5.2% to $17.22 as its trading volume fell more than 10% year-over-year.

California Micro (CAMD) rose 19% to $5.51 after the small cap wireless player raised its forecasts for the quarter.

Starbucks (SBUX) rose 2.4% to $33.85 after it agreed to pay $13.5 million to acquire Diedrich's coffee stores owned by the company (non-franchise). Diedrich's (DDRX) shares fell 15% to $4.25 after the street realized this was going to kill the top-line and probably will irritate the hell out of franchisees who hate Starbucks competition.

Rambus (RMBS) gave back 4.8% to close at $18.11 after receiving a letter that they were out of compliance on their financial covenants, although the company denied this.

Syntroleum (SYNM) rose a massive 19% to $4.99 after its ultra-clean jet fuel is being tested in a B-52 demo flight.

Aastrom Bio (ASTM) rose 12%, or $0.15, to $1.32 after its tissue repair interim results showed positive data on helping bone growth in patients who had failed traditional treatments.

Food Tech (VIFL) rose 20% to $2.41 on very thin volume because of its irradiation technology after reports of an e.Coli breakout in the US from raw bagged spinach.

Even after filing more details for the Western Union IPO spin-off, shares of parent First Data (FDC) fell 0.7% to $44.62.

Vertex (VRTX) fell 1.6% to $32.98 after pricing a 9.1 million share secondary at $33.00 per share.

Have a great weekend.

Jon C. Ogg
September 15, 2006

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