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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, October 23, 2006

Market Wrap (Oct. 23, 2006)

DJIA 12,116.91; Up 114.54 (0.95%)
NASDAQ 2,355.56; Up 13.26 (0.57%)
S&P500 1,377.02; Up 8.42 (0.62%)
10YR-Bond 4.826%

Ahead of the scheduled Fed meeting for tomorrow and Wednesday, the DJIA put in another new high.

AT&T (T) rose 0.8% to $34.71 after posting EPS vs $0.63 vs. $0.58e.

Hasbro (HAS) rose a large 8% to $25.33 after posting EPS of $0.58 vs $0.50 estimates.

Wrigley (WWY) rose 13% to $53.20 after it named an outside-of-the-family CEO for the first time in what may be generations. William Perez is the replacement.

Ford (F) fell 1.3% to $7.90 after it reported their biggest quarterly loss in 14 years and the company said they would have to restate more than five years of earnings to correct for the accounting of derivative transactions.

Wal-Mart (WMT) rose a sharp 3.8% at $51.28, a 52-week high, after it announced they would slow their pace of spending and new-store growth in 2007.

American Express (AXP) fell 2.4% to $56.65 after the reported earning mid-day.

Halliburton (HAL) rose 1.7% to $29.26 after beating earnings and announcing they would put 20% of KBR out in a public IPO.

IBM Corp (IBM) filed for two patent infringement lawsuits against (AMZN) today. IBM gained 1.1% to $91.57 and AMZN also rose 0.9% to $32.88.

Replidyne (RDYN) and partner Forest Labs (FRX) were down -45% to $5.59 and -5.7% at $48.54 respectively after they received an FDA non-approvable letter for their new antibiotic drug candidate Faropenem Medoxomil.

Vivus (VVUS) rose more than 3% to $3.70 after it reported positive results from a Phase II trial for Qnexa, an oral treatment for obesity.

MetaSolv (MSLV) rose a sharp 21% to $4.01 as Oracle (ORCL) agreed to acquire the company for about $4.10 per share in cash.

Connetics Corp (CNCT) rose 45% to $17.07 after it signed a $640 million deal to merge with Stiefel Labs.

Indus International (IINT) rose 46% to $3.68 after the delivery management service provider agreed to be acquired by an affiliate of Vista Equity Partners for $3.85 a share, or $240 million.

E*Trade (ET) rose 4.25% to $22.78 after Goldman Sachs said the free Bank of America trading was more of a gimmick and raised the online broker to a "Buy" rating; making ET the analyst call of the day.

Jon C. Ogg

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