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Contributors: Douglas McIntyre Jon C. Ogg

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Tuesday, October 10, 2006

Market Wrap (Oct. 10, 2006)

DJIA 11,867.17; Up 9.36 (0.08%)
NASDAQ 2,315.43; Up 3.66 (0.16%)
S&P500 1,353.42; Up 2.76 (0.20%)
10YR-Bond 4.7480%

The DJIA did put in a new high on the Dow Jones Industrial Average, and items such as Korea and Iran seemed to not even come up. Tumbling oil prices were on the back of market assumptions that OPEC cuts would be in name only as they would likely cheat on production again, and forecasts for a warmer winter didn't hurt.

The iShares South Korea (EWY) managed to close up 0.2% at $45.60 on over 1.1 million shares.

Despite oil falling abck under the $59/barrel mark, oil stocks closed higher. Goldman Sachs downgraded Exxon Mobil (XOM) and Murhphy Oil (MUR) from Buy to Neutral, but XOM rose $0.65 to $67.20 and MUR closed up $0.39 at $48.72. Goldman in turn upgraded Anadarko (APC) and Devon (DVN) from Neutral to Buy and APC rose $1.51 to $43.14 and DVN rose $2.15 to $63.70. The Oil Service HOLDRs (OIH) also rose $2.85 to $125.60.

Qualcomm (QCOM) rose 2.2% to $37.07 after announcing and ITC judge determined that it did not infringe on 2 of 3 Broadcom (BCM) patents; BRCM fell 2.6% to $28.80.

DRHorton (DHI) rose 3.8% to $24.76; its gave lousy numbers, but the street already knew that; a JPMorgan upgrade helped the stock and other homebuilders.

Imclone (IMCL) rose almost 4% to $31.09 after its Chairman David Kies resigned.

Google (GOOG) closed down marginally by 0.55% at $426.65 after the day it announced it was paying $1.65 in stock for online video leader YouTube.

Sprint-NexTel (S) fell 0.2% to $18.04 after its chairman announced he would be leaving the company.

Sears Holdings (SHLD) closed up 2.5% to $169.29 as Jim Cramer said it was turning into an earnings story soon and said it could go to $200 per share.

Metal Storm (MTSX) closed up 23% to close at $2.57 after a report noted that the Chinese had offered $100 million for the technology. (KNOT) rose 7.7% to $23.69 after it named 3 new director to replace 2 departing board members,one of which was a former Time Warner executive.

Despite a weaker market, Time Warner (TWX) managed to put in a new 52-week high closing price of $18.98. It was surprisingly on thin volume again, indicative of a situation without many sellers.

Anheuser Busch (BUD) rose 2.1% to $47.98 on overseas paper reports that Eddie Lampert may be interested in making an offer for the company, but Jim Cramer said it wasn't very likely on STOP TRADING.

CVS (CVS) closed flat at $29.72 despite having raised guidance.

LGPhilips LCD (LPL-ADR/NYSE) traded down a sharp 7% at $15.12 after posting wider losses overseas.

Swift Transport (SWFT) rose 6% to $27.19 after raising its EPS guidance.

Jon C. Ogg
October 10, 2006

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