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Contributors: Douglas McIntyre Jon C. Ogg

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Tuesday, October 03, 2006

Market Wrap (Oct. 3, 2006)

Stock Tickers: XOM OIH SWKS MRVL BRCM GILD NMGC PIR LCRY ABMD WAG KSS DGX

DJIA 11,727.34; Up 56.99 (0.49%)
NASDAQ 2,243.65; Up 6.05 (0.27%)
S&P500 1,334.11; Up 3.83 (0.29%)
10YR-Bond 4.6160%

Dare we say it......a record close for the market. Oil prices fell even further to under $59 per barrel at one point after the Colorado University predicted that there would not be any more major storms that would hit the Gulf of Mexico and the energy infrastructure. Lower energy prices and lower commodity prices helped the market today, let alone all the cheer leading by CNBC about a record high on the DJIA. If it was a commodity or a commodity related stock today, it closed lower.

Exxon Mobil (XOM) fell 2.3% to $65.41 and the Oil Services HOLDRs (OIH) fell 4.4% to $120.53.

Intel (INTC) managed to close up 0.6% at $20.57 even after the EU threatened it may issue an antitrust suit against the company.

Skyworks Solutions (SWKS) was the big winner closing up 35% at $6.85 on 35 million shares after getting 4 upgrades and after selling a unit and cutting 10% of its workers.

Marvell Tech (MRVL) was a disappointment with its stock losing 12% to $16.80 after it issued a substantial revenue shortfall warning with a statement that its options review turned up backdating to the point that earnings could not be counted all the way back to 2000.

Broadcom (BRCM) fell 3% to $29.91 in sympathy with Marvell.

Gilead (GILD) fell another 3.5% to $62.03 the day after it amnnounced it would acquire Myogen.

Neomagic (NMGC) rose a sharp 23% to $3.64 after rumors were spread around that it may benefit from more Apple-related business.

Pier 1 Imports (PIR) gave back almost 2% to close at $7.59 after it announced it would eliminate its dividend to focus on restructuring.

Lecroy (LCRY) shares gave up 10% to close at $12.49 after it filed to sell $60 million in securities and after announcing an acquisition.

Abiomed (ABMD) fell 2% to $14.44 after it filed to sell 7.5 million shares for additional operating capital.

Walgreens (WAG) rose 2.3% to $44.43 after posting strong same store sales.

Kohl's Corp (KSS) rose 3.1% to $67.53 after posting strong sales with same store sales up 16.3% for September.

Quest Diagnostics (DGX) gave up 18% to $50.00 after losing its test and diagnostic testing pact with UnitedHealthcare, which accounted for 7% of its business.

Jon C. Ogg
October 3, 2006
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