S&P 500 1,133.60 +.14%
NASDAQ 1,998.24 +.13%
Oil Service +2.70%
Crude Oil 37.65 unch.
Natural Gas 6.52 +.57%
Gold 385.60 +.10%
Base Metals 105.36 +.40%
U.S. Dollar 90.01 +1.03%
10-Yr. T-note Yield 4.72% +1.02%
VIX 14.79 -1.73%
Put/Call .66 -12.0%
NYSE Arms .96 +3.23%
JBL -10.01% after meeting 3Q estimates and lowering 4Q forecast.
CHIR -3.21% after saying it intends to raise approximately $350 million gross proceeds through an offering of 30-year convertible debtentures.
Goldman reiterated Underperform on BSC. Goldman reiterated Attractive view on Gold sector.
U.S. stocks finished slightly higher today on low volume as investors continue to show apprehension ahead of several market-moving events. After the close, Moqtada al-Sadr told his Mahdi Army fighters to leave the holy cities of Najaf and Karbala and go home, the NY Times reported. President Reagan will be featured on a postage stamp in February, Bloomberg reported. The U.S. dollar rose today on the heels of reports showing the strongest industrial production in 6 years and a strong housing market. Ford Motor increased its second-quarter earnings forecast to .45-.50/share from .30-35/share, Bloomberg reported. Delta Air, which may seek bankruptcy protection, expects spending on jet fuel to rise 35% this year, CEO Grinstein said.
BOTTOM LINE: The Portfolio was slightly lower today and I took profits in a few longs in the afternoon and added a few shorts, leaving the Portfolio with 25% net long market exposure. One of my new shorts is FDS and I am using a stop-loss of $52.25. Apprehension remains high ahead many market-moving events, thus the churning action in the major indices. However, fundamentals are excellent and improving. If tomorrow's core PPI does not exceed expectations, I will change my view that the Fed will raise rates by 50 basis points by June 30 to 25 basis points on June 30. I suspect tomorrow's bond market action will dictate the direction of stock prices one way or the other.