Stocks Finish at Session Highs as Energy Prices Reverse and Shorts Cover at 2006-02-06 23:45:56
Indices S&P 500 1,282.46 +.19% DJIA 10,953.95 +.82% NASDAQ 2,310.56 +.21% Russell 2000 735.48 +.31% S&P Barra Growth 610.92 +.14% S&P Barra Value 667.45 +.23% Morgan Stanley Consumer 595.63 +.53% Morgan Stanley Cyclical 795.32 +.29% Morgan Stanley Technology 541.96 +.16% Transports 4,321.70 -1.05% Utilities 414.46 +.15% Put/Call .84 +9.09% NYSE Arms .85 -43.61% Volatility(VIX) 12.36 -4.56% ISE Sentiment 221.00 +49.32% US Dollar 89.50 +.61% CRB 344.59 -1.17%
Afternoon Recommendations Goldman Sachs: - Reiterated Outperform on (USB) and (MNST). - Reiterated Underperform on (JBLU) and (BUD).
Afternoon/Evening Headlines Bloomberg: - The SEC said almost 800 hedge-fund advisers met today’s deadline to register with the agency under a controversial rule that subjects the industry to stricter regulation and random inspections for the first time. - Starbucks(SBUX) said first-quarter profit rose 20% on demand for espresso drinks and seasonal offerings. The company also raised its first quarter forecast. - Research in Motion(RIMM) won a provisional ruling against a patent at the center of a court fight over its BlackBerry e-mail device, as a judge prepares to decide whether to stop most service in the US. - Crude oil fell more than $1 a barrel in NY and natural gas plunged 12% from session highs after an Energy Department report showed larger-than-expected gains in US oil and gas inventories.
Reuters: - President Bush said the US will defend Israel against Iran if needed and criticized Iranian President Ahmadinejad for “menacing talk” against Israel.
Mediaweek Magazine: - Jim Cramer, host of CNBC’s “Mad Money,” will move his one-hour daily radio show to CBS Radio from WOR Radio Network.
BOTTOM LINE: The Portfolio finished higher today on gains in my Networking, Medical Information Systems longs, Biotech longs, Computer longs and Energy-related shorts. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was modestly positive today as the advance/decline line finished slightly higher, most sectors rose and volume was heavy. Measures of investor anxiety were mostly lower into the close. Overall, today was very good for the bulls as the major averages and breadth finished near session highs on heavy volume, notwithstanding considerable headwinds. Energy prices across the board cratered, with natural gas plunging 11.2% from session highs. Even substantial weakness in energy-related market leading stocks couldn't send the major averages lower. This is a huge positive.
