Tuesday, June 22, 2004

Tuesday Close

S&P 500 1,134.41 +.36%
NASDAQ 1,994.15 +1.0%

Leading Sectors
Semis +3.47%
Disk Drives +2.98%
Networking +2.75%

Lagging Sectors
HMO's -.75%
Fashion -.79%
Broadcasting -1.23%

Crude Oil 38.18 -.18%
Natural Gas 6.41 -.03%
Gold 396.20 +.18%
Base Metals 106.91 -2.66%
U.S. Dollar 89.43 +.20%
10-Yr. T-note Yield 4.72% +.72%
VIX 14.31 -6.23%
Put/Call .80 +5.26%
NYSE Arms .66 -49.62%

After-hours Movers
FSII +6.16% after beating 3Q estimates substantially and raising 4Q guidance.

Goldman Sachs reiterated Outperform on WMT, KR and MSFT.

After-hours News
U.S. stocks finished higher today led by technology shares on optimism over telecom spending. After the close, the European Union and the U.S. have failed to reach an agreement to spur competition in the airline market before a summit in Ireland this weekend, the Financial Times said. The EU is seeking to eventually remove the limit on foreign ownership of airlines, 25% in the U.S. and 49% in the EU, to access the U.S. domestic market, the FT said. Crude oil futures rose modestly today as refinery maintenance closings boosted concern gasoline supplies will be inadequate during the peak-demand summer months. About 10 million women in the U.S. are being screened unnecessarily for cervical cancer after having had a hysterectomy, an operation that usually removes the cervix and the risk of the disease, Bloomberg reported. SBC Communications will spend as much as $6 billion building a fiber-optic network that offers digital television service as it steps up competition with cable-TV providers, Bloomberg said.

BOTTOM LINE: The Portfolio finished unchanged on a late-day rally in my base metal and telecom equipment long positions. I added a few new semiconductor and financial longs in the afternoon, leaving the Portfolio with 100% net long market exposure. One of my new longs is PMCS and I am using a $12.50 stop-loss on this position. Volume increased and the advance/decline line improved greatly during the afternoon rally. Today's outperformance by tech is the beginning of a very strong move by the sector and is positive for the overall market, in my opinion.

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