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Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, October 04, 2006

Market Wrap (Oct. 4, 2006)

DJIA 11,850.53; Up 123.19 (1.05%)
NASDAQ 2,290.95; Up 47.30 (2.11%)
S&P500 1,350.21; Up 16.10 (1.21%)
10YR-Bond 4.5650%

We are trying a new layout today. This should offer a faster market wrap and show more data on the company stock moves based on positive and negative news.

We hit yet another high in the Dow Jones Indutrial Average today. Ben Bernanke was speaking today, and his comments essentially gave the market the feeling that he was no longer worried about inflation. Some of the shorter intermediate-term bonds crossed under the 4.50% mark today. More increases in weekly oil inventories hurt oil prices, which also added to the market rally. ISM non-Manufacturing posted a drop to 52.9, but that is still above the 50.0 barometer for growth or contraction.

Stock Prices atthe end in order based on news:

POSITIVE NEWS

Wal-Mart (WMT) is actually a winner for not closing way off after gapping down 2%. Its stock managed a comeback after it revised its already weak same store sales numbers from +1.8% down to +1.3%. These were just released on Monday, and they blamed an error.

Starbucks (SBUX) ran up after Cramer on CNBC's STOP TRADING segment was positive (again for third time in two weeks) on the coffee behemoth. He said "It's going to $40 and going to $40 quickly."

Cramer gave a rally in two small caps: Arris (ARRS) he said should really win from cable's triple play rollouts, although it is "worst of breed" and Arena Pharma (ARNA) rose after he pointed out how good its anti-obesity drug is.

NVIDIA (NVDA) rose on takeover rumors, with Intel listed as the possible suitor.

Hewlett-Packard (HPQ) rallied after the California Attorney General handed out indictments to H-P ex-executives, but the good news is that CEO Mark Hurd is not among those indicted.

Orasure (OSUR) rose after getting a pact from Roche for drug test kits.

Boeing (BA) continued to benefit after Airbus had continued delays and is likely to get more order cuts for its A380 super-jumbo jet that looks like a retarded dolphin.

Valero (VLO) rose despite its warning yesterday and despite a chemical leak that caused injuries at one of its refineries.

Panera Bread (PNRA) posted a sharp gain after beating its same store sales projections.

Saks (SKS) traded up after announcing it was paying a $4.00 special dividend as part of its plan to return funds to shareholders.

Lawson Software (LWSN) climbed marginally after posting EPS of $0.02 vs. $0.01 estimates, although revenues were a tad light.

Ticker Close Change Volume
WMT $49.55 $ 0.09 24,495,200
SBUX $35.96 $ 1.95 15,672,589
ARRS $11.60 $ 0.61 5,604,673
ARNA $13.78 $ 1.03 5,578,381
NVDA $31.08 $ 2.78 23,901,248
HPQ $38.02 $ 0.60 14,557,400
OSUR $ 8.12 $ 0.45 1,302,917
BA $83.88 $ 2.10 6,808,800
VLO $50.10 $ 1.93 25,298,800
PNRA $64.75 $ 6.40
3,392,954
SKS $17.93 $ 0.36 5,079,400
LWSN $ 7.53 $ 0.25 2,723,178


NEGATIVE NEWS

General Motors (GM) initially fell over 4% after it was announced that it and Renault had called off talks of an alliance.

WCO Communities (WCI) issued an unsurprising earnings warning, but its shares still managed to close down.

DivX (DIVX) sank pretty hard after Cramer on MAD MONEY last night said "Ring the register since it is up 20% in a week."

Despite raising guidance, Commscope (CTV) gave up quite a bit.

RPM (RPM) closed lower on the day after posting $0.49 EPS vs $0.51 estimates.

Sirius (SIRI) and XM Satellite Radio (XMSR) both fell after offering Q3 growth numbers; SIRI added 441,101 subscribers and XMSR managed to add 285,000 subscribers in the quarter.

Level 3 (LVLT) continued to give back its Cramer-gains as investors flock to larger megacaps.

Marvell Tech (MRVL) sold off a bit more for a second day after it issued a revenue warning.

Ticker Close Change Volume
GM $33.32 $(0.09) 18,190,300
WCI $16.30 $(0.85) 4,335,300
DIVX $20.81 $(1.54) 2,338,812
CTV $30.56 $(1.41) 6,381,800
RPM $18.71 $(0.29) 3,113,500
SIRI $ 3.94 $(0.13) 75,304,776
XMSR $11.96 $(0.62) 19,209,864
LVLT $ 4.93 $(0.07) 62,752,916
MRVL $16.41 $(0.39) 30,482,652


Jon C. Ogg
October 4, 2006
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