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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, October 09, 2006

Market Wrap (Oct. 9, 2006)

DJIA 11,857.81; Up 7.60 (0.06%)
NASDAQ 2,311.77; Up 11.78 (0.51%)
S&P500 1,350.66; Up 1.08 (0.08%)
10YR-Bond 4.698% (closed)

Today was pretty light volume considering that the bond market was closed in observance of Columbus Day. This brings up a question: Do bond market participants get too many holidays, or are the equity market guys not given enough holidays? I like to think it is the latter. The markets survived Kim Jon Il's underground nuclear test, with the US markets actually hitting new intraday highs on the DJIA.

The iShares Korea (EWY) fared the worst out there on North Korean nuclear tests, with EWY closing down 3.8% at $45.50.

Cablevision (CVC) rose 10.5% to $26.45 after the founding Dolan family made an offer to take the rest of the company private. Time Warner (TWX) rose as the CVC terms and online media deal potentiality out there made its properties more valuable.

Mercantile Bank (MRBK) rose 22% to $44.94 after a $6 Billion acquisition by PNC Financial (PNC) was agreed to.

Google (GOOG) rose 2% to $429.00 on more word that it was going to close on a YouTube buyout for some $1.6 Billion as soon as today, and after it signed music and video pacts with Warner Music and Sont BMG.

Boeing (BA) fell 1% to $82.65 after its rival Airbus said its CEO who was only 100 days on the job resigned. It appears the concern could be that the rival will be able to get someone competent in the job.

Monster Worldwide (MNST) rose 1.2% to $40.48 after its CEO said he was going to leave since at 71 years the job was more demanding than he would be able to keep up with.

New River Pharma (NRPH) rose a sharp 61% to $42.32 after its ADHD drug with Shire (SHPGY) was given an "approvable" nod by an FDA panel; SHPGY rose 15% to $57.16.

Powerwave (PWAV) fell a sharp 17% to $6.42 after lowering revenue guidance by 20%.

Amkor Tech (AMKR) rose a sharp 33% to $6.76 after the company said former management option grants would cause nearly 10 years of earnings restatements.

NetRatings (NTRT) rose 16% to $16.91 after VNU overseas offered to make a majority buyout at $16.00 per share.

Mobility Electronics (MOBE) fell an additional 7% to $2.90 after falling more than 40% after last week's earnings warning.

CNS Inc. (CNXS) rose 28% to $36.72 after GlaxoSmithkline offered to acquire the company for $37.50 per share.

Cortex Pharmaceuticals (COR) shares rose 9% to $3.36 after the company said the clinical hold on its Ampakine CX717 compound was lifted by the FDA.

Johnson Controls (JCI) rose 2.5% to $77.25 after reaffirming 2007 guidance, although 2 quarters out seemed light.

Ultralife Batteries (ULBI) rose 6% to $12.04 after receiving a $10.9 million order from a defense contractor.

Alphatec Holdings (ATEC) fell 20% to $3.63 after lowering guidance.

The big downgrade of the day was UBS' call on pharmacy benefit managers with Express Scripts (ESRX), Medco Health (MHS), and Craemark (CMX) all being cut to Neutral. ESRX fell 6.7% to $68.96.

Van der Moolen (VDM) specilaist operations said revenues would be some 30% lower, and VDM shares fell some 11% to $6.04.

VitalStream Holdings (VSTH) fell 3.5% to $6.75 after saying its MySpace revenues would taper off.

Jon C.Ogg
October 9, 2006

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