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Contributors: Douglas McIntyre Jon C. Ogg

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Tuesday, November 14, 2006

Market Wrap (Nov. 14, 2006)

DJIA 12,216.97; Up 85.09 (0.70%)
NASDAQ 2,430.18; Up 23.80 (0.99%)
S&P500 1,393.14; Up 8.72 (0.63%)
10YR-Bond 4.568%; Down 0.037
NYSE Volume 2,931,884,000
NASD Volume 1,881,414,000

Wholesale Inflation measured by the October PPI fell 1.6% because of falling energy prices. Core inflation on an ex-food and energy basis fell 0.9% for October. October retail sales were down 0.2% for October. We were set for yet another day of hitting resistance and selling off, but then Fed Governor Fischer spoke several buy programs came into the market. Fischer said as long as the housing market weakness remains contained to housing there is not much the fed can or should do. Since the markets took this to mean the fed was out of the game, the DJIA and S&P managed to gain to new highs.

Both retail giants Target and Wal-Mart rose on earnings: Target (TGT) rose 2.2% to $59.07 after posting EPS at $0.59 vs $0.55e; Wal-Mart (WMT) rose 2.9% to $47.67 after it showed EPS at $0.62 vs. $0.60 estimates.

Home Depot (HD) had opened lower after missing EPS estimates ($0.73 vs $0.75e), but managed to rise 4% to $37.91 with the broad market later in the day.

Golf Galaxy (GGXY) rose to 17% to $18.44 after Dick's Sporting Goods (DKS) announced it was acquiring the company. DKS also beat earnings and its shares closed up

DR Horton (DHI) rose 9.4% to $24.48 after the homebuilder posted earnings at $0.88 EPS vs $0.70e.

BJ's Wholesale Club (BJ) rose 4% to $29.76 after it beat earnings with $0.32 EPS vs $0.26+ estimates.

Agilent (A) gave up much of its recent gains today by falling 5.75% to $32.99 after it missed earnings expectation at $0.46 EPS vs $0.49e.

Cyberonics (CYBX) rose 20% to $21.34 after raider Carl Icahn disclosed he had purchased shares in the emerging medical device maker.

Intel (INTC) rose over 4% to $21.88 after Caris gave a positive report on the sector.

Nice Systems (NICE) rose 6% to $32.58 after it was raised to Buy at B of A and after the NY Transit System awarded it a security pact.

Cheniere Energy (LNG) rose 3.4% to $26.01 after Lehman initiation of coverage to an Outperform.

Microsoft (MSFT) closed down $0.02 at $29.22 after it formed an Interop Alliance for more interoperability of Windows and other client systems.

The InterContinental Exchange (ICE) gained 9% to $96.63 today as the price terms were hiked for its competing NYMEX IPO by 10% for later in the week.

Omnivision (OVTI), a BAIT SHOP MEMBER since September, rallied almost 8% to $17.70 on word that it could be acquired today.

Pier 1 Imports (PIR), a BAIT SHOP "Watch List" stock, rose 20% to $7.62 after Reuters reported that Jakup Jacobsen may want to acquire the rest of the company after it already purchased operations in the UK.

Timberland (TBL), a BAIT SHOP "Watch List" stock, rose 7.6% to $33.36 after the WSJ reported that it could be taken private.

Netopia (NTPA) rose 22% to $6.83 after Motorola agreed to acquire the stock for $7.00 cash per share.

Stent makers managed to dodge a real bullet as a report claiming that stents did not help reduce the risk of a heart attack: J&J (JNJ) rose 15 to $66.57, Boston Scientific (BSX) rose 0.4% to $15.93, Abbott (ABT) rose 1.15% to $46.18 and stent polymer coating maker SurModics (SRDX) rose 0.45% to $32.00.....although Angiotech (ANPI) fell 2.2% to $8.61.

Jon C. Ogg
November 14, 2006

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