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Friday, October 06, 2006

Market Wrap (Oct. 6, 2006)

DJIA 11,850.21; Down 16.48 (0.14%)
NASDAQ 2,299.99; Down 6.35 (0.28%)
S&P500 1,349.58; Down 3.64 (0.27%)
10YR-Bond 4.696%

How do we describe a slow day marked by a bit more profit taking than buying? Well, we put in new all-time highs on the Down Jones Industrial Average, so it is probably not unexpected. Job numbers were mixed on the surface with new jobs created at 51,000 vs. 125,000 estimated, Unemployment was 4.6% vs. 4.7 estimated %; and wages grew +0.2% vs. +0.3% wages esimated. Unfortunately, Elain Chow and the Labor Department revised a bunch off prior job numbers: they said August unemployment was at 4.6% and the jobs created were 188,000 instead of the 128,000 previously reported. The federal budget was also recorded at $250 Billion as the estimate for this year.

General Motors (GM) was the big story of the day with its shares losing 6.28% to close at $31.01 after Kerkorian's plant Jerry York resigned from the GM board of directors and a filing showed that they would no longer seek to take more shares in the stock. This also made Jim Cramer take off his $40.00 target and issue a "5-up 5-down" outlook, where it could go up $5.00 or down $5.00 with equal probability.

Google (GOOG) also rose 2% to $420.50 on numerous reports signalling that they may acquire the video-craze leader YouTube for some $1.6 Billion.

Danaos Corporation (DAC), a Greek container ship leasing operator, priced its 10.25 million share IPO at $21.00. It closed at $10.87.

deCode Genetics (DCGN) was a big loser after dropping its heart failure investigations.

Art Technology (ARTG) lost 15% after it warned.

Micron Technology (MU) lost 13% and closed at $15.14 after it whiffed its earnings so bad Thursday, not good for a stock close to its yearly high.

Amkor Tech (AMKR) lost 10% to close at $5.05 after its 46% owner-CEO said he was going to file for bankruptcy if the $2 Billion worth of bond holders didn't give extensions to credit pacts.

Shutterfly (SFLY) losing 9% and closing at $12.40 on new competition and a critical report on the stock.

Salesforce.com (CRM) rose 6% to $40.36 after a positive research report.

Boeing (BA) only rose $0.06 to $83.68, but it was a beneficiary since Rolls Royce announced it would stop building jet engines for the Airbus A380 because of all the delays.

Altria (MO) rose 0.28% to $78.62 the day after Cramer pumped it up a bit.

Microsoft (MSFT) closed down 0.2% at $27.93 on a CNET article hinting there could be a date change on its Windows Vista.

Have a great Weekend, and TGIF!!!!

-The 24/7 Wall St. staff
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