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Monday, September 18, 2006

Market Wrap (September 18, 2006)

DJIA 11,555.00; Down 5.77 (0.05%)
NASDAQ 2,235.75; Up 0.16 (0.01%)
S&P500 1,321.18; Up 1.31 (0.10%)
10YR-Bond 4.81%

The stock market hardly noticed a $1 per barrel in oil prices, but that is because the trend has been established. The US trade deficit in the second quarter was $218.4 Billion, the second highest on record. Despite the fact that both the S&P and the DJIA had been positive and had been close to new all-time highs, the markets just couldn't close in positive territory. Overall it was a light volume day.

Oil Service HOLDRs (OIH) rallied 3% to close at $129.31 with oil.

First Data (FDC) fell a sharp 7.7% to $41.22 after its soon-to-be-IPO spin-off Western Union actually warned on its financial results.

Gap Inc. (GPS) rose again to close up 1.6% at $18.21 on word that Sears' Eddie Lampert may have an interest in the company.

General Motors (GM) and Ford (F) actually closed down 0.6% at $31.46 and down 2.4% at $7.82 respectively after reports that the companies held merger or alliance talks in the past. The companies are not said to be in talks now.

Applied Materials (AMAT) rose 3% to $17.76 after it announced a $5 Billion share buyback plan and accelerated purchases under the exitsting plan.

Freescale (FSL) rose 5% to $39.26 after its bid from a Blackstone-led private equity group came in at $40 per share.

Symbol Tech (SBL) rose 15% to $14.66 on reports that it was also close to getting buyout offers.

Food Technology (VIFL) rose another 4.9% to $2.54 after continued reports of broadening e.coli infections from spinach because it makes food irradiation systems.

Premium Standard Farms (PORK) rose 12% to $19.99 after Smithfield Foods (SFD) made a cand and stock buyout offer of $21.35 before any dilution to the price; SFD fell 3.4% to $28.22,

Commonwealth Telephone (CTCO) rose 6% to $40.87 after Citizens Communications announced it would acquire the CLEC.

Oracle (ORCL) fell 0.5% to $16.25 one day ahead of its earnings expectations and a day afetr Jim cramer said it was a good way to play tech.

Cell Therapeutics (CTIC) rose 6% to $2.08 after it signed exclusive license pact with Novartis for XYOTAX for non-small lung cancer and other cancers.

Emmis Broadcasting (EMMS) rose 1.9% to $12.00 on quadruple an average daily volume after declaring a $4.00 special dividend.

HealthSpring (HS) shares fell a sharp 10% to $19.88 after it filed to sell 9 million shares after the company said it has "areas of concern" about a pending acquisition.

Quidel (QDEL) rose 5% to $12.79 after the company received FDA approval for its infant viral test.

Time Warner (TWX) rose 0.7% to $17.14 after it finalized plans to sell its AOL Germany to Telecom Italia for some $855 million.

Jon C. Ogg
September 18, 2006
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