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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, October 02, 2006

Market Wrap (Oct. 2, 2006): Q4 Begins

DJIA 11,670.35; Down 8.72 (0.07%)
NASDAQ 2,237.60; Down 20.83 (0.92%)
S&P500 1,331.33; Down 4.52 (0.34%)
10YR-Bond 4.618%

Today we started off Q4, if you can imagine the calendar running so fast it feels like I had 2 birthdays already in 2006. We had a Jewish holiday that made trading volume lighter than normal and we had mixed economic news as the Institute of Supply Management showed slower growth with a 52.9 reading for September, but still above the 50.0 magic line of growth versus contraction. We also saw the construction spending for August rise 0.3% as per Commerce Department reports. The Semiconductor Industry Association posted record sales for August at $20.5 Billion, although it also said inventories were rising within trend for the pre-holiday sales. Oil initially rose on reports over the weekend that Venezuela and Nigeria would trim output, but apparently the street took it as daily rhetoic.

We had one of the larger private equity deals announced today, and the largest in the gambling sector as a private equity group received a $15 Billion buyout offer, or $81 per share, from Apollo Management and rom texas pacific Group; HET rose 14% to

Myogen (MYOG) also rose from a Buyout offer from Gilead (GILD); MYOG rose over 45% to $51.55; GILD fell 4% to $64.28.

Qualcomm (QCOM) fell 4.6% to $34.66 as Broadcom's fight against the company will now go as far as invalidating its rights.

Wal-Mart (WMT) sales for September only posted a 1.8% gain, and WMT stock fell 1.7% to close at $48.47.

Pier 1 (PIR) actually rose 4.3% to $7.74 after its CEO announced he would retire.

Despite getting a patent license pact from Nokia (NOK), Trimble Navigation (TRMB) fell 1% to $46.58.

LCA Vision (LCAV) fell a whopping $10.00+, or down 24%, to close at $31.09 after the results will fall short of estimates and the CEO will leave the company.

Pacific Sunwear (PSUN) rose 7% to $16.17 after the head of the company announced he would step down.

MediaLink Worldwide (MDLK) rose 40% to $4.25 after announcing the sale of its US news wire operations sale to PR Newswire.

AP Pharma (APPA) rose 12% to $1.20 as it licensed one of its lead drug candidates.

Despite a report calling Check Point Software (CHKP) a buyout candidate, CHKP managed to fall almost 2% down to $18.71.

Apple (AAPL) fell 2.75% to $74.86 after Citigroup downgraded its rating to a "Hold" from a "Buy" rating.

Jon C. Ogg
October 2, 2006

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