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Wednesday, November 08, 2006

Market Wrap (November 8, 2006)

DJIA 12,176.54; Up 19.77 (0.16%)
NASDAQ 2,384.94; Up 9.06 (0.38%)
S&P500 1,385.72; Up 2.88 (0.21%)
10YR-Bond 4.633% Down 0.026
NYSE Volume 2,851,515,000
NASD Volume 2,041,004,000

On a post-election basis an on a day where we are awaiting CSCO earnings, stock fared much batter than would have been expected. Rumsfeld stepped down, the democrats won the House, and the senate is still up in the air.

As democrats are deemed good for stem cell research, StemCells (STEM) rose 10% to $3.39, and Geron (GERN) rose 3.3% to $8.66.

If the Democrats are bad for energy stocks, it looks like the energy stock traders didn't get the memo. Exxon Mobil (XOM) rose 2.2% to $74.13 and the Oil Service HOLDR's (OIH) rose 2.1% to $139.92.

Alternative energy stocks also rose on the election. Pacific Ethanol (PEIX) rose almost 8% to $17.51, ADM (ADM) rose 6.5% to $35.72, VeraSun (VSE) rose almost 9% to $20.38, Ballard Power (BLDP) rose almost 9% to $7.25.

Healthcare stocks and Big Pharma stocks did drift lower: UnitedHealth (UNH) fell 3% to $48.01, Cigna (CI) fell 2.5% to $119.22, and Pfizer (PFE) fell 1.6% to $26.62. Standard & Poors issued a note stating that they think the street may be overreacting, and time will have to tell that.

Alliant Techsystems (ATK) only fell 0.9% to $76.50, and it is one name that traders worried about under democrats since they are the largest US supplier of bullets to the military.

Merck (MRK) fell 3.4% to $44.34 on its own bad news of a potential tax bill in excess of a $5 Billion mark.

Fannie Mae (FNM) rose 2.9% to $61.66 as it is deemed a winner under democrats as well. Its less controversial cousin Freddie Mac (FRE) also rose 1.9% to $71.23.

AT&T (T) actually rose 0.2% to $34.37 after there were headlines that the FCC may delay the review of the BellSouth merger until 2007.

Tribune (TRB) rose some 2.7% to $32.47 after Eli Broad and Ron Burkle were teaming up to bid for the company.

McDonalds (MCD) rose 0.8% to $42.00 after posting same-store-sales of 5.5% in October.

Federated (FD) fell 0.95% to $39.95, despite unexpectedly posting a net loss of some $3 million.

Cisco Systems (CSCO) rose 0.25% to $25.10 to a new two-year high ahead of earnings as the street has high expectations on the company.

Microsoft (MSFT) rose 0.10% to $28.98 after it confirmed that the Windows Vista sourcecode is DONE! It will meet the January 30, 2007 shipping date in 5 different languages.

Novell (NOVL) rose another 3.7% to $6.74 after the Mirosoft SUSE Linux support deal is actually going to start as a $240 million upfront payment, that has a potential total contract value of over $400 million.

Sirius Satellite Radio (SIRI) rose another 0.75% to $4.12 after posting narrower losses than expected.

Jon C. Ogg
November 8, 2006
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