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Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, October 11, 2006

Market Wrap (Oct.11, 2006)

DJIA 11,852.13; Down 15.04 (0.13%)
NASDAQ 2,308.27; Down 7.16 (0.31%)
S&P500 1,349.95; Down 3.47 (0.26%)
10YR-Bond 4.784%

The markets initially tanked on word of an aircraft crash in NYC, but recovered after the street figured out or started to deduct that it was no relation to terrorism. Oil prices fell to an 8 month low to under $58 per barrel after OPEC noted a formal 1 million barrel per day production cut and after T. Boone Pickens quotes "$70 before $50" regarding the price of a barrel of oil on CNBC early this morning. Fed officials in the minutes of their September 20 meeting said that the housing sctor was cooling rapidly and it could subdue growth for the rest of 2006, but the Fed noted that

We had a small aircraft crash into an apartment building in NYC near 51st and York, although all indications were that this was not foul play nor terrorism. Sorry for this market wrap report being short today, but this activity in NYC pretty much chewed up the bulk of the late afternoon.

Exxon Mobil (XOM) closed down 1% at $66.53.

UAL (UAUA) closed up 1.7% after Cramer last night called it his fresh idea after naming so many BUY list names in the "buy cyclicals" and "sell consumer staples" call he made.

Bank of America (BAC) changed the online commission trading landscape disclosing its version of commission free trades online, and it sent online trading firems reeling back. E*Trade (ET) closed down over 8% at $22.31, Ameritrade (AMTD) closed down almost 12% at $16.82, and Schwab (SCHW) closed down almost 5% at $17.22.

Legg Mason (LM) closed down 17% at $87.15 after it gave an earnings warning.

Nitromed (NTMD) closed down almost 10% at $2.29 after slashing its sales force.

Alcoa (AA) closed down 5% at $26.85 after it missed estimates after yesterday's close.

Genentech (DNA) closed down 1.7% at $84.15 after beating earnings, but it missed estimates on 3 of its 4 followed drugs.

Bellsouth (BLS) rose 0.5% to $43.44 after the DOJ gave primary clearance to the AT&T merger.

CNET (CNET) fell almost 7% after losing its CEO amid the options probe and it closed out the day down at $9.14.

McAfee closed up 3.3% at $26.64 after naming a new CEO/President.

Spansion (SPSN) initially fell 5%, but closed up 3.9% at $16.50 after disclosing that AMD/Fujitsu would unload 35 million shares.

Jon C. Ogg

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