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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, October 16, 2006

Market Wrap (Oct. 16, 2006)


DJIA 11,980.60; Up 20.09 (0.17%)
NASDAQ 2,363.84; Up 6.55 (0.28%)
S&P500 1,369.06; Up 3.44 (0.25%)
10YR-Bond 4.788%

This was the beginning of the real earnings flood, even though earnings season for the quarter officially launched last week. This week we have 12 DJIA components and 105 of the 500 S&P 500 index member reporting earnings. The DJIA came within sniffing distance of that 12,000 hurdle after Fed Governor Poole said in a speech that draconian action won't be needed to control the economy if inflation picks back up.

Sirius Satellite Radio (SIRI) closed down 1% at $3.84 after disclosing they would give away Howard Stern for free over the internet for 2 days to entice more subscribers.

Eaton (ETN) rose 7% to $75.53 and Granger (GWW) rose 2.8% to $72.46 after both companies beat earnings on strong non-residential construction.

JLG Industries (JLG) rose 32% to $27.55 after Oshkosh (OSK) announced it would acquire the company; OSK fell 5% to $52.46 on dilution.

eMerge Interactive (EMRG) rose a whopping 73% to $3.04 after Prime BioSolutions agreed to acquire the company; OSK fell on the share dilution.

Valley Bancorp (VLLY) rose an additional 3.4% to $48.57 after its merger with Community Bancorp was approved.

As oil rose over $1.00 per barrel, shares of Exxon Mobil (XOM) rose 2% to $69.83 and Valero (VLO) rose 0.26% to $53.73.

Research-in-Motion (RIMM) fell almost 3% to $110.62 after disclosing it would have to delay its quarterly filing for its ongoing options review.

UnitedHealth Group (UNH) fell 2.5% to $47.55 after it disclosed that its CEO McGuire would leave over its options scandal because of flagrant and obvious options back-dating.

After Prudential raised Alcoa (AA) to Overweight AA rose 2.5% to $27.31, a help after its losses from missing earnings last week.

Home Depot (HD) fell 1.5% to $36.33 after being downgraded at Goldman Sachs.

General Electric (GE) fell 1.1% to $35.57 after Merrill Lynch downgraded the stock to a Neutral.

Intel (INTC) rose $0.01 to $21.61 (had been much higher) ahead of earnings after engineers speaking in Asia said their Core Duo processors were gaining more than they anticipated. The street took this as a prelude to earnings and guidance being not as negative as the tone had been recently.

Evergreen Solar (ESLR) rose 15% to $9.46 after winning a 4 year $100 million supply contract for solar cells.

Lumera (LMRA) ran a whopping 216%, or $3.42, to close at $5.00 after tests showed that they will be able to enable government and commercial entities to transmit vast amounts of data via a variety of high speed telecommunications networks.

MEDTOX Scientific (MTOX) rose 22% to $11.05 after beating earnings expectations.

Security With Advanced Technology (SWAT) rose 19% to $7.00 after announcing that it won a security pact for monitoring trains in teh Capitol Corridor Joint Powers Authority.

Riverbed technology (RVBD) rose a sharp 11% to $20.05 after Jim Cramer on friday touted the stock as one beating Cisco (CSCO) at its own game.

LaBranche (LAB) fell a sharp 17% to $9.08 after its earnings missed street ecpectations, and another specialist Van der Moolen (VDM) fell 3% to $5.75 after its CFO resigned from the company.

Jon C. Ogg

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