Wall Street to Main Street: News, Views and Commentary: June 16, 2006
It is Friday June 16, 2006, and we had some observe by means of in yesterdays buying and selling session because the Nasdaq shot up over 2.8%, the S&P 500 jumped 2.1% and the Dow pushed its method by means of the 11,000 mark. However the quantity on the Indexes weren’t as heavy as they need to’ve been with these positive aspects. It could’ve been a greater scenario for this leap to unfold over a few days to keep away from an enormous pullback however the market hung in there. So we might even see a slight pullback in the present day however we’re in search of further upside earlier than the weekend.
Now lets check out Pure Fuel. July pure fuel rallied up over 61 cents to over $7.2 per mil BTU. That brings us to an organization that we have been hesitant about when it was over the $25 quantity due to a few causes. First it was in a downward buying and selling sample and second their most important income comes from the Gulf Coast, most particularly New Orleans, LA. Now it is nonetheless a dangerous scenario however beneath $19 your draw back needs to be restricted in comparison with the upside potential.
We spoke about treasured and base metals transferring on the upside on Thursday and that is precisely what they did by the top of the buying and selling day. Bringing most of the gold, silver, and copper shares proper together with it. Firms like Rio Tinto (NYSE: RTP), BHP Billiton (NYSE: BHP), Crystallex Worldwide (AMEX: KRY), Newmont Mining (NYSE: NEM), Peru Copper (AMEX: CUP) and Bema Gold (AMEX: BGO) transfer increased, however the massive boys did not do too shabby both as Southern Copper (NYSE: PCU) added $5.94 to shut at $77.94, Phelps Dodge (NYSE: PD) shot up $4.23 to shut at $80.64, U.S. Metal (NYSE: X) rose $4.51 to shut at $64.00 and Metal Dynamics (NASDAQ: STLD) traded up $4.66 to shut at $55.57.
Now the valuable and base steel shares weren’t the one ones to do the whatoosie, oil and oil associated shares joined the get together as corporations like Petroleo Brasil (NYSE: PBR) which traded up $5.37 to shut at $78.47, Oceaneering Worldwide (NYSE: OII) which traded up $6.59 to shut at $78.96 and Extremely Petroleum (NYSE: UPL) which traded up $5.06 to shut at $52.69 added to the rally as crude oil costs rose.
Now we should always see observe by means of in the present day within the oil sector as merchants could also be protecting their quick positions forward of the weekend.
Political Entrance
Iranian President Mahmoud Ahmadinejad is continuous to get as a lot out of this tense scenario as attainable as he mentioned a set of incentives and penalties aimed toward persuading Tehran to curtail its nuclear applications was a constructive step however left the door open with reference to how they might reply. So the beat goes on.
In america, President Bush inked the paperwork that has established the biggest ocean wildlife reserve on the planet. It’s situated alongside a string of islands and reefs that stretch 1,400 miles northwest of the primary Hawaiian Islands. So President Bush is on a roll as that is positive to tack on to his favorable score.
Sticking to the U.S., Home Republicans have structured a debate on Iraq to point out help for the U.S. Troops. The intent is to pressure lawmakers to take a place both method on withdrawing U.S. forces from Iraq in its fourth 12 months. That is scheduled to kick off in the present day.
Tid Bits
The founding father of Microsoft (NASDAQ: MSFT) and one the richest folks on the planet, Invoice Gates, will probably be hanging up his daily hat on the firm by 2008, he will probably be passing the baton to his Chief Expertise Officer Ray Ozzie when he steps down. Gates will probably be concentrating on his charitable efforts by means of the Invoice & Melinda Gates Basis. Now rumors are spreading quickly that Steve Ballmer would be the subsequent to step apart because the software program big struggles to discover a approach to hold itself related within the coming years as corporations like Google (NASDAQ: GOOG) are nipping at its heels.
China Development Financial institution is having a fireplace sale as they’ve offered a good portfolio of reposed mortgage belongings with a face worth of US$120 million (960 million yuan) to a international funding group. They solely acquired 19% of the face worth of the belongings, so therefore the hearth sale. This included each business property and land. That is simply the beginning as they’re scheduled to unload one other billion plus price of repossessed mortgages by year-end.
Google (NASDAQ: GOOG) is on a tear as they’ve simply unveiled a authorities web site search, mainly it is a new perform that can permit internet surfers to find information and data which might be accessible on federal company web sites. This could turn out to be useful not just for internet surfers however for the federal government companies themselves, giving their workers entry to info rapidly and simply.
After a collection of query and reply classes with the united statesAttorney’s Workplace and the SEC, it got here to mild that the previous CEO of the New York Inventory Alternate Richard Grasso took the fifth over 150 instances through the quite a few classes with them. Grasso introduced worth to the NYSE throughout his tenure, he was attacked for his compensation bundle, which was voted on by the then members of the NYSE, and he continues to be hounded because it pertains to the AIG scenario. This can be a growing scenario.
Movers and Shakers
Some main movers in yesterdays buying and selling session included Vitality Conversion Units (NASDAQ: ENER), which traded up $5.44 to shut at $37.43 on Thursday. The inventory simply rode the momentum of the sector and you must see some observe by means of in in the present day’s buying and selling session.
GFI Group Inc (NASDAQ: GFIG) shot up yesterday after Citigroup Funding Analysis upgraded the inventory from a Maintain to A Purchase. It rose $5.42 to shut at $52.05.
Las Vegas Sands (NYSE: LVS) shot up $4.78 to shut at $68.05, which brings the inventory nearer to its 52 week excessive. However we might even see a pullback on the inventory after the short run up.
Steve Madden Ltd. (NASDAQ: SHOO) was upgraded to a Robust Purchase from an Accumulate by C.L. King, this improve despatched the fill up $4.64 to shut at $30.08. Now the inventory nonetheless has legs because it might proceed it ahead movement and attain the $33 possibly $35 mark within the coming weeks.
CEMEX (NYSE: CX) traded up $5.10 to shut at $54.64, the corporate agreed to cancel a US$400-500 million arbitration case in opposition to the Indonesian authorities over a failed put possibility deal for buying a majority stake in PT Semen Gresik. Now it nonetheless stays to be seen if this cancellation will open the doorways for Cemex to shut a US$337 million deal to promote its 24 plus p.c Gresik stake to the Rajawali Group. In the event that they do get the inexperienced mild this might enhance the inventory additional.
Bear Stearns (NYSE: BSC) kick off the monetary sector upward swing once they reported blockbuster numbers, the inventory rose $7.36 to shut at $131.56, whereas Goldman Sachs (NYSE: GS) traded up $5.62 to shut at $144.12 and Black Rock (NYSE: BLK) settled in because it traded up $5.82 to shut at $128.33. The entire sector moved increased however we aren’t going to record each firm that moved up. Numerous the brokerage shares are nonetheless not peaking so regulate them, as they’re positive to maneuver a lot increased in 2006.
Different shares that made good strikes on Thursday embody Freightcar America (NASDAQ: RAIL) traded up $4.84 to shut at $52.04, Dril-Quip (NYSE: DRQ) traded up $4.79 to shut at $74.13, PetroChina (NYSE: PTR) traded up $4.71 to shut at $99.18, American Industrial Traces (NASDAQ: ACLI) traded up 45.16 to shut at $50.86,
Beneath Ten
Some shares that made strikes on the upside beneath ten bucks embody Encysive Prescription drugs (NASDAQ: ENCY), the corporate acknowledged that the Meals and Drug Administration is reviewing their drug to deal with hypertension within the pulmonary arteries, a situation known as pulmonary arterial hypertension. This despatched the fill up over $1.96 to shut at $7.01 Again in March the corporate delayed its research with TBC3711 and the inventory dropped from $9.45 to $4.60 inside a few days, so you should still see some upward motion on Encysive going into subsequent week.
Different shares that moved increased yesterday beneath ten bucks included Datalink (NASDAQ: DTLK) which traded up $1.21 to shut at $6.16, Daystar Applied sciences (NASDAQ: DSTI) traded up 98 cents to shut at $9.38, Volcano Corp (NASDAQ: VOLC) traded up 95 cents to shut at $9.95, House Options America (AMEX: HOM) traded up 90 cents to shut at $7.70, Neopharm, Inc (NASDAQ: NEOL) traded up 89 cents to shut at $6.87 and 24/7 Actual Media (NASDAQ: TFSM) which traded up 81 cents to shut at $7.69.
Downers
Imagine it or not there have been some shares that truly traded down yesterday they usually embody PrimeEnergy (NASDAQ: PNRG) which traded down $3.33 to shut at $78.47, VeraSun vitality (NYSE: VSE) the latest Ethanol IPO dropped down $2.85 to shut at $27.15, Nutrisystem (NASDAQ: NTRI) traded down $2.16 to shut at 457.42, TeleFlex, Inc (NYSE: TFX) dropped $2.10 to shut at $51.28, Each day Journal (NASDAQ: DJCO) traded down $1.19 to shut at $38.10 and Altus Prescription drugs (NASDAQ: ALTU) traded down $1.12 to shut at $18.27.
Now some shares beneath ten bucks that acquired the royal smack down yesterday embody Catalyst Semiconductor (NASDAQ: CATS) which traded down 55 cents to shut at $3.62, Himax Applied sciences (NASDAQ: HIMX) traded down 23 cents to shut at $4.77, Electro Sensors (NASDAQ: ELSE) traded down 17 cents to shut at $4.18 and Superior Environmental Recycling Tech (NASDAQ: AERTA) traded down 13 cents to shut at $3.33.
Analyst Upgrades/Downgrades
Current Analyst upgrades embody Coldwater Creek (NASDAQ: CWTR) which was upgraded to an Accumulate from a Impartial by C.L. King, Sovran Self Storage (NYSE: SSS) was upgraded to a Purchase from Maintain by AG Edwards, Solectron Corp (NYSE: SLR) was upgraded to a Peer Carry out from a Beneath Carry out by Bear Stearns and Nvidia (NASDAQ: NVDA) was upgraded to a Purchase from a Impartial by UBS.
Current Analyst downgrades embody Catalyst Semiconductor (NASDAQ: CATS) which was downgraded to a Maintain from a Purchase by Needham & Co, CV Therapeutics (NASDAQ: CVTX) which was downgraded to a Market Carry out from an Outperform by Piper Jaffray, Common Mills (NYSE: GIS) was downgraded to a Maintain from a Purchase by Citigroup Funding Analysis, and Volt Info Sciences (NYSE: VOL) which was downgraded to a Impartial from a purchase by Sidoti & Co.
Current analyst protection initiations embody Vibrant Inc (NASDAQ: CELL) it was initiated with a Maintain score by Jefferies & Co, Nova Chemical (NYSE: NCX) was initiated with a Sector Performer score by CIBC World Markets, FLIR Methods (NASDAQ: FLIR) was initiated with a Purchase score by BB&T Capital Markets and Information Corp (NYSE: NWS) which was initiated with a Peer Carry out score by Bear Stearns.
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