Wednesday, June 09, 2004

Wednesday Close

S&P 500 1,131.33 -.95%
NASDAQ 1,990.61 -1.63%

Leading Sectors
Telecom +.56%
Gaming -.12%
Oil Service -.29%

Lagging Sectors
Homebuilders -2.68%
Biotech -2.95%
Semis -3.24%

Crude Oil 37.71 +.45%
Natural Gas 6.10 +.30%
Gold 384.20 -.26%
Base Metals 104.84 -2.11%
U.S. Dollar 89.75 +1.40%
10-Yr. T-note Yield 4.81% +.97%
VIX 15.39 +2.53%
Put/Call .89 +3.49%
NYSE Arms 1.19 +30.77%

After-hours Movers
TGT +5.19% after announcing that May Department Stores agreed to buy its Marshall Field's department stores for $3.24 billion.
NTOP +4.9% after beating 3Q estimates.
MATK -9.79% after missing 2Q estimates lowering guidance.
AMTD -3.42% after lowering 3Q guidance.

Goldman Sachs reiterated Outperform on SRE, ACN, KO, AGN, XRX, USB and Underperform on TWMC.

After-hours News
U.S. stocks finished lower today as interest rates rose ahead of several key inflation reports. Interest rate-sensitive and high-beta stocks bore the brunt of the selling. After the close, Apple Computer said it will introduce a European version of its iTunes Web site for selling music next week, the International Herald Tribune reported. Dongkuk Steel Mill bought 5,000 tons of pig iron from Russia's Kuznetsky Met Kombinat at $237 a ton, less than the $295 a ton it paid last month, the Tex Report said. AU Optronics, which is boosting capacity at a new plant making flat-panel displays for computers and televisions, is poised to become the world's No. 1 supplier of the displays, displacing two larger rivals, the Commercial Times reported. Accenture may lose a $10 billion contract to work on border security under legislation approved by a House of Representatives committee, Bloomberg reported. Former Symbol Technologies CEO Razmilovic, indicted last week for conspiring to commit accounting fraud, is a fugitive, Bloomberg reported. The Semiconductor Industry Association raised it outlook for chip growth today, predicting that revenue in 04 will jump 28% to $214 billion, Bloomberg said.

BOTTOM LINE: The Portfolio was down today on weakness in my technology, biotechnology and industrial long positions. I took profits in several more longs in the afternoon and put out a couple of new shorts, leaving the Portfolio with market neutral(longs-shorts=0) exposure. One of my new shorts is DITC and I am using a stop-loss of $22.00 on this position. As previously discussed, I expect U.S. stocks to remain neutral to lower for the next couple of weeks. I will look to selectively add to favorite long positions during this time period on any extreme weakness as I expect the rally to resume towards the end of the month or the first of July.

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