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  Jeff Bailey   6/16/200,  5:58:58 PM
Closing Internals at this Link

 
 
  Jeff Bailey   6/16/200,  5:17:35 PM
Pivot Matrix for tomorrow at this Link

 
 
  Jeff Bailey   6/16/200,  4:48:09 PM
Ford Motor (F) $15.63 +1.42% ... released for trade at $15.85.

 
 
  Jeff Bailey   6/16/200,  4:38:06 PM
U.S. Dollar Index (dx00y) at 04:00 PM EDT traded 90.00 at that mark.

04:00 closes on SWC $14.10 +2.99%, BGO $2.53 +0.39%

 
 
  Jeff Bailey   6/16/200,  4:22:46 PM
Daimler/Chrysler (DCX) $46.01 -0.71% Link .... flat with no trades.

 
 
  Jeff Bailey   6/16/200,  4:21:46 PM
General Motors (GM) $47.88 +0.5% Link ... $48.25 in extended hours.

 
 
  Jeff Bailey   6/16/200,  4:19:27 PM
Ford Motor (F) $15.63 +1.42% Link ... halted ... upping Q2 EPS guidance by 15 cents per share from a range of 30-35 cents per share to 45-50 cents per share.

News at this Link

Consensus among analysts was for Ford to earn $0.41 per share for Q2.

 
 
  Jeff Bailey   6/16/200,  4:15:15 PM
QQQ $36.75 -0.13% .... based on today's range, if QQQ closes $36.77, then it will close right at tomorrow's DAILY Pivot.

 
 
  Jeff Bailey   6/16/200,  3:57:01 PM
Day trade update alert ... will hold Bema Gold (BGO) $2.53 +0.39% overnight. Unless it does one of those late session spurts higher to $2.60 target.

Not shown today .... I have a conventional retracement on BGO from 05/10/04 low to the recent 06/01/04 relative high. This has 61.8% marking the recent pullback lows at $2.44, where 50% currently resides at $2.53 and 38.2% higher at $2.62.

 
 
  Jeff Bailey   6/16/200,  3:31:51 PM
Russell 2000 Index (RUT.X) 570.04 +0.37% ... upside al_rt I had set here at its trending lower-to flat 50-day SMA. Session highs here.

 
 
  James Brown   6/16/200,  3:23:57 PM
The spark for Curtiss Wright's (CW) recent rally is a mystery. This defense contractor has been stuck in a trading range between $44 and 49 for more than five months. Three days ago the stock rockets higher on big volume with no news. Today the stock is up three days in a row with strong volume on all three sessions and still there is no news to explain the move. CW +1.16% to $51.19. Its P&F chart shows a new triple-top breakout buy signal.

 
 
  James Brown   6/16/200,  3:20:11 PM
relative strength? Sierra Health Services (SIE) is up seven weeks in a row and is hitting another new high today. The best place to consider bullish positions appears to be a bounce from its 40 or 50-dma.

 
 
  Jeff Bailey   6/16/200,  3:18:23 PM
03:00 Internals at this Link

 
 
  James Brown   6/16/200,  3:18:02 PM
Natural gas stock EGN is hitting new highs and appears to have produced a cup-and-handle formation.

 
 
  James Brown   6/16/200,  3:14:57 PM
Oil/gas play EOG is seeing some follow through on its breakout over $55.00. Volume has been stronger on the rally. MACD is in a new buy signal. Yet now shares look short-term overbought. Bulls might want to wait for a dip.

 
 
  James Brown   6/16/200,  3:10:23 PM
Cadbury Schepps (CSG) looks like a bullish candidate if it can breakout over resistance at $34.60. Shares have been consolidating sideways for the last couple of weeks. Its P&F target points to a $59 price target.

 
 
  Jeff Bailey   6/16/200,  3:08:22 PM
03:03 PM Market Watch at this Link

 
 
  James Brown   6/16/200,  3:07:42 PM
Another oil and gas stock on the move today is Occidental Petroleum (OXY). Shares are breaking out over resistance at $46.00 and its 40 and 50-dma's. The next overhead resistance level should be $49.25.

 
 
  Jeff Bailey   6/16/200,  2:57:57 PM
Day trade long alert ... for Bema Gold (BGO) $2.52 here, stop $2.49, target $2.60 by the close.

 
 
  Jim Brown   6/16/200,  2:53:13 PM
Earnings after the bell today:

CFI estimate of $0.25
JBL estimate of $0.26

 
 
  James Brown   6/16/200,  2:33:19 PM
Both Fannie Mae (FNM) and Freddie Mac (FRE) have been moving higher the last couple of days. FNM is breaking out over resistance at $70 and its 50-dma. FRE is pushing through recent sideways consolidation above $60.

 
 
  James Brown   6/16/200,  2:28:39 PM
Dow-component ExxonMobil (XOM) is up another 1.29% after breaking out over resistance at $44.00-44.25 yesterday. This is a new three-year high for XOM.

 
 
  James Brown   6/16/200,  2:26:39 PM
Alberto Culver (ACV) is trying to breakout over resistance at $48.00 but just can't seem to do it yet. A failure to do so would make this look like a double-top.

 
 
  Jane Fox   6/16/200,  2:24:57 PM
Dateline WSJ Sept. 11 plot mastermind Khalid Shaikh Mohammed originally envisioned an attack involving 10 hijacked planes with himself as the pilot of one in which all male passengers would be killed and he would deliver an anti-American harangue upon landing.

The assertion was among new details about the plot revealed this morning in a report by the staff of the independent commission investigating the attacks.

The report, based on interviews with government officials by commission staff and documents the staff reviewed, said Mr. Mohammed initially proposed hitting CIA and FBI headquarters, unidentified nuclear plants and tall buildings in California and Washington state, in addition to the World Trade Center, Pentagon and White House or Capitol.

 
 
  James Brown   6/16/200,  2:24:47 PM
Bulls can keep an eye on Lexmark Intl (LXK) for a breakout over resistance at $95.00. Yesterday an analyst reiterated their "out perform" rating and $105 price target. Currently LXK's P&F chart points to a $102 price target.

 
 
  James Brown   6/16/200,  2:22:40 PM
Allergan (AGN) is making a move today, up 82 cents and confirming yesterday's breakout over resistance at $90.75. the next hurdle is its April high near $92.50. Its P&F target is $108.

 
 
  Jeff Bailey   6/16/200,  2:19:49 PM
Swing trade round to full alert for the Stillwater Mining (SWC) October $15 calls (SWCJC) at $1.55.

SWC $14.12 +3.14% here.

 
 
  James Brown   6/16/200,  2:11:55 PM
It's been a while since I looked at Chiquita Brands (CQB) since the stock does not have options. Shares have been very strong the last four weeks straight with very little volatility. Its P&F chart is bearish but the chart shows a low pole reversal. The daily chart shows the stock breaking out above its trendline of lower highs. CQB says that its total Q2 banana volumes are up 3% with Asia seeing strong growth versus flat to down sales in N. America and Europe.

 
 
  James Brown   6/16/200,  2:02:52 PM
Callaway Gold (ELY) is down more than 20% to $11.92 after issuing a revenue warning last night. Wall Street has responded with a number of downgrades.

ELY's press release says, "that it is reducing its revenue and earnings guidance in light of weakening sales trends. Key factors causing the lowered expectations include the underperformance at retail of its titanium driver models, a continuing decline in business in Japan, and revised expectations for a bigger than expected loss from its Top-Flite operations."

 
 
  Jeff Bailey   6/16/200,  2:02:13 PM
Semiconductor HOLDRs (SMH) $37.05 -1.2% .... little volume spike of 579,900 last 5-minutes. Came right at session low and fills yesterday's gap higher back to the downside. Might have been a cross.

Should note that June "Max Pain" for the SMH is calculated at $37.50 (in increments of $2.50)

 
 
  Jonathan Levinson   6/16/200,  2:01:57 PM
2:00pm BEIGE BOOK: ECONOMY EXPANDING ACROSS THE NATION

2:00pm BEIGE BOOK: HIRING INCREASING AT 'FASTER PACE'

2:00pm BEIGE BOOK: CONSUMER PRICES UP MODESTLY

2:00pm BEIGE BOOK: WAGES RISING SLOWLY

 
 
  James Brown   6/16/200,  1:58:00 PM
IDEXX Labs (IDXX) is up 1% to $65.28. Shares gapped lower this morning on a downgrade to a "hold" by Wells Fargo but have rebounded strongly from its simple 40-dma. If it breaks out over $66.00 bulls might want to give it another look.

 
 
  James Brown   6/16/200,  1:52:05 PM
Best Buy Co (BBY) is down 2.69% and under all its moving averages. The company reported earnings this morning and beat estimates by 1 cent per share. Revenues were up more than 17% to $5.47 billion, which was above estimates. First quarter same-store sales were up 8.3% and BBY expects Q2 same-store sales to rise 5-7%. Meanwhile BBY plans to open 73 new stores in 2005.

 
 
  James Brown   6/16/200,  1:46:56 PM
Illinois Tools Works (ITW) has been cut to "neutral" by Prudential. The stock is slipping toward what should be support at $90.00 but keep an eye on the 40-dma, currently near $88.51. ITW found support above its 40-dma last month.

 
 
  James Brown   6/16/200,  1:43:11 PM
7-Eleven (SE) is reporting that May same-store sales rose 7.8% while total sales rose 16.8% to $1.09 billion for the month.

 
 
  James Brown   6/16/200,  1:33:11 PM
oh yeah, we know not to touch dad's stuff.

 
 
  Jane Fox   6/16/200,  1:30:26 PM
Are you hearing this James?

 
 
  Jim Brown   6/16/200,  1:29:34 PM
Jane, I agree. My kids know better. Touch my stuff and you die. (grin)

 
 
  Jane Fox   6/16/200,  1:27:48 PM
EVen if the part about the money were not true Jim, it would be nothing short of cruel to do that to an old man (although 65 is not that old). Older people get set in their ways and younger people cannot understand it. When we moved my Mom from Calgary to Vancouver she didn't want to throw away old buckets because they truly meant something to her. To have burnt all her furniture would have done her in.

 
 
  Jeff Bailey   6/16/200,  1:26:36 PM
01:00 Internals at this Link

 
 
  Jim Brown   6/16/200,  1:24:18 PM
Nightmare on Elm Street
My wife was watching some show on cable last night about reality TV gone bad and I walked into the room just as this story was concluding. Seems a 65yr old father/grandfather was lured away from his house by some family member for a visit so the rest of the kids could "remodel" it. They threw out all his furniture and had a big bonfire with all the junk furniture dad had accumulated over the last 50 years.

When the dad came home to his "surprise" he got a panicked look on his face and went berserk when he saw the bedroom with the new bed. He started shouting where is my mattress, where is my mattress over and over again. The kids explained that the mattress was over 35 years old and it was filthy and very lumpy and they burned it with the rest of the scrap furniture to prevent him from putting it back into the house. The dad went into a rage and then broke down crying. Seems he had been stashing away money in the mattress for years. Since his mother had told him about the bank failures when she was young he never trusted a bank. He had been saving cash since he was 16 for his retirement and for the last 20 years had been stuffing it in his mattress. According to him he had accumulated over $2 million in that mattress.

Now I have no way of knowing if this is true or maybe just a hoax that was created when the makeover/remodel shows began to have less than satisfactory results in some cases. Either way, it was represented as true and the show never made it on the air because of the negative results. I can't keep from thinking about it today. I can't even imagine the dad's depression and the impact on the kids if it was true.

 
 
  Jeff Bailey   6/16/200,  1:22:03 PM
Listening to CNBC and metals analyst at T. Rowe Price. Agree with his thoughts. Place to be bullish is industrial metals, where gold has some troubles under rising rate environment.

 
 
  Jeff Bailey   6/16/200,  1:16:03 PM
01:07 PM Market Watch at this Link

Just after that sell program premium.

 
 
  Jeff Bailey   6/16/200,  1:07:14 PM
Sell Program Premium ... SPX 1,132.00 , INDU 10,368 , QQQ $36.71, SOX.X 467.41, BIX.X 347.09

 
 
  James Brown   6/16/200,  1:02:28 PM
Copper futures are once again in the red with a 1.67% drop. This would appear to be a failed rally at the $1.20 per pound level. Shares of Phelps Dodge (PD) are holding up pretty well given the drop in copper. Yet shares of PD are consolidating in a narrowing range. PD's technicals are suggesting the stock will breakout to the downside.

 
 
  Jeff Bailey   6/16/200,  1:00:39 PM
Relative Strength chart of SWC vs. dx00y at this Link

Here's a daily interval chart, but from www.stockcharts.com Link

A similar chart, but now SWC versus the Gold Bugs Index. Remember, SWC is a palladium miner, not a gold miner. Link

 
 
  Jeff Bailey   6/16/200,  12:47:23 PM
U.S. Dollar Index (dx00y) 90.02 +1.04% (30-min delayed) ... that pop higher in the dollar at 10:35 would appear to be correlative to the 10:35 AM release of API/DOE weekly inventories.

(see Jonathan's 10:52:31) post of inventory data.

 
 
  Jeff Bailey   6/16/200,  12:31:17 PM
12:00 Internals at this Link

If today's NASDAQ NH/NL daily ratio were to stay at current levels, we would see a 3-box reversal lower at its 10-day NH/NL ratio to 66%.

Here's my NH/NL table at this Link

 
 
  James Brown   6/16/200,  12:20:38 PM
Longs Drug Stores Inc (LDG) is up 1.36% and gapping up above resistance at its 200-dma and the $22.00 level on an upgrade to a "buy".

 
 
  James Brown   6/16/200,  12:17:12 PM
Knight Trading Group (NITE) reported yesterday that its May trading volumes were down 25% from April. Merrill Lynch has downgraded the stock from "buy" to "neutral" on this news and shares of NITE are now down 7.6% to $9.78 on the downgrade. The gap down today breaks support at $10.50 and $10.00. NITE's P&F chart points to a $5.50 price target but does have P&F support at $8.50.

 
 
  Jeff Bailey   6/16/200,  12:16:16 PM
IPIX Corp. (IPIX) today's drive looks to be the signing of another contract for its AdMission platform. Link

 
 
  James Brown   6/16/200,  12:12:13 PM
After an impressive post-IPO performance shares of Blue Nile (NILE) are down almost 9% to $33.16 after American Tech Research starts coverage on the stock with a "sell".

 
 
  Jeff Bailey   6/16/200,  12:05:43 PM
IPIX Corp. (IPIX) $14.88 +9.3% ... now that we've got the break above zone of resistance, here's what I'm doing, looking at. Link

 
 
  James Brown   6/16/200,  12:02:11 PM
Whole Foods Market Inc (WFMI) is up another 2% to yet another new all-time high. We listed WFMI on the watch list last night with its breakout over $87.00. The stock is nearing round-number psychological resistance near $90.

 
 
  James Brown   6/16/200,  11:57:39 AM
Analyst on CNBC now believes SII and SLB will continue to surprise to the upside. We listed these to oil services companies on the Monitor yesterday. SII is up another 1% to $53.80 after hitting $54.70 this morning. SLB is up a strong 3% to $61.76 and gapping above resistance at $60.00 and its 100-dma.

 
 
  James Brown   6/16/200,  11:52:21 AM
OI put play SYMC is down another 3.5% to $40.93. Yesterday's afternoon rally pretty much filled the Tuesday morning gap and now SYMC is sinking again. Short-term players should consider taking profits near $40.00, which was our short-term target. More aggressive traders might want to target the 200-dma near $38.65.

Fueling the move lower are comments from Moors & Cabot who reiterated their "sell" rating and a $35 price target.

 
 
  James Brown   6/16/200,  11:50:29 AM
OI put play CCMP is down another 7% to $26.20, which looks like a new four-year low. It's probably time to start lowering stops and/or taking some money off the table here.

 
 
  Jeff Bailey   6/16/200,  11:43:36 AM
11:00 Internals at this Link

 
 
  Jeff Bailey   6/16/200,  11:31:29 AM
IPIX Corp. (IPIX) $14.32 +4.92% .... back at $14.34 here. This had been recent resistance since bullish profile. Good volume last 30-minutes. Looks like shorts a bit jittery.

 
 
  Jeff Bailey   6/16/200,  11:26:57 AM
Semiconductor Index (SOX.X 467.70 -0.76% ... downside al_rt set here and losing yesterday's lows.

QQQ $36.73 -0.19%

 
 
  Jeff Bailey   6/16/200,  11:08:07 AM
U.S. Dollar Index (dx00y) 89.91 +0.92% (30-minute delayed) ... getting upside al_rt I had set here at MONTHLY Pivot.

Pressures AMEX Gold Bugs ($HUI.X) 178.81 -1.8% back to morning lows.

SWC $13.81 +0.87% ....

 
 
  Jeff Bailey   6/16/200,  10:55:25 AM
IPIX Corp. (IPIX) $13.85 +1.68% ... little pop in last 15-minutes. Edging above yesterday's highs. Might start pressing some shorts.

 
 
  Jonathan Levinson   6/16/200,  10:52:31 AM
10:46am API: CRUDE STOCKS UP 482,000 BARRELS

10:47am API: GASOLINE SUPPLIES DOWN 503,000 BARRELS

10:47am API: DISTILLATE STOCKS UP 913,000 BARRELS

 
 
  Jeff Bailey   6/16/200,  10:37:19 AM
10:35 Market Watch at this Link

 
 
  Jeff Bailey   6/16/200,  10:23:38 AM
VIX.X 14.74 -2.05% .... session lows here.

SPX 1,133.01 +0.08% ....

INDU 10,373.11 -0.07% ...

QQQ $36.83 +0.10% ....

BIX.X 348.01 +0.14% ....

SOX.X 470.63 -0.14% ...

 
 
  Jeff Bailey   6/16/200,  10:19:41 AM
U.S. Dollar Index (dx00y) 89.77 +0.75% (30-min delayed) .... session high has been 89.88, just fractions shy of MONTHLY Pivot (89.89). Session low overnight has been 89.07, just fractioins above WEEKLY Pivot (89.04).

Stillwater Mining (SWC) $13.64 -0.36% .... tempted to round to full position.

 
 
  Jane Fox   6/16/200,  10:15:21 AM
DAteline WSJ WASHINGTON -- The commission investigating the Sept. 11 attacks reported Osama bin Laden met with a top Iraqi official in 1994 but found "no credible evidence" of a link between Iraq and al Qaeda in attacks against the U.S.

In a report released this morning and based on research and interviews by the commission staff, the panel said that bin Laden explored possible cooperation with Saddam even though he opposed the Iraqi leader's secular regime.

A senior Iraqi intelligence official reportedly met with bin Laden in 1994 in Sudan, the panel found, and bin Laden "is said to have requested space to establish training camps, as well as assistance in procuring weapons, but Iraq apparently never responded."

 
 
  Jeff Bailey   6/16/200,  10:10:00 AM
10:00 Internals at this Link

Yesterday's Internals at this Link

 
 
  Jeff Bailey   6/16/200,  9:58:49 AM
S&P Banks (BIX.X) 347.00 -0.14% ... session low and WEEKLY S1.

Can I get a sell program premium ?

 
 
  Jonathan Levinson   6/16/200,  9:55:31 AM
The Fed's open market desk is not entering the market today, allowing 8.5B in repos to expire unrefunded for a drain in that amount.

 
 
  Jeff Bailey   6/16/200,  9:51:05 AM
SPX Option Chain has July 875, 950, 975 and 915 puts all top spots on most active. Not very active, but most active in early trade.

June 1,130 put (SPTRF) shows 170 contracts traded and #9 on volume.

 
 
  Jeff Bailey   6/16/200,  9:48:12 AM
Market Volatility Indx (VIX.X) 14.93 -0.79% .....

 
 
  Jeff Bailey   6/16/200,  9:46:19 AM
QQQ $36.69 -0.21% .... session high so far has been $36.79, where DAILY Pivot resides at $36.78. First 5-minute bar was from $36.70-$36.79.

SOX.X 468.94 -0.5% .... didn't try and test its DAILY Pivot, now hovering at yesterday afternoon's low and WEEKLY S1 (468.71).

 
 
  Jeff Bailey   6/16/200,  9:43:36 AM
S&P 500 Index (SPX.X) 1,132.18 +0.01% .... just off morning high of 1,132.84, where SPX came back up to test its DAILY Pivot (1,132.74). Rather quiet morning trade at this point.

BIX.X 347.67 +0.05% ... just under its DAILY Pivot (347.79)

 
 
  Jonathan Levinson   6/16/200,  9:15:58 AM
9:15am U.S. MAY INDUSTRIAL OUTPUT IS FASTEST RISE SINCE AUG 98

 
 
  Jonathan Levinson   6/16/200,  9:15:45 AM
9:15am U.S. MAY CAPACITY IN USE 77.8%, HIGHEST SINCE MAY 2001

9:15am U.S. MAY INDUSTRIAL OUTPUT UP 1.1% VS FORECAST 0.8%

 
 
  Jonathan Levinson   6/16/200,  8:31:49 AM
8:30am U.S. MAY SINGLE-FAMILY HOUSING STARTS UP 1.4% TO 1.64 MLN

 
 
  Jonathan Levinson   6/16/200,  8:31:32 AM
8:30am U.S. MAY BUILDING PERMITS HIGHEST IN 31 YEARS

 
 
  Jonathan Levinson   6/16/200,  8:31:01 AM
8:30am U.S. MAY HOUSING STARTS DOWN 0.7% TO 1.97 MLN

8:30am U.S. MAY BUILDING PERMITS UP 3% TO 2.08 MLN

 
 
  Linda Piazza   6/16/200,  8:20:15 AM
I'm going to be on a day's vacation today, so need to post this before getting a look at this morning's economic numbers, but I thought I'd give a quick analysis of the OEX's chart. Over the past several days, the OEX has been drawing back into a formation that looks a lot like a bull flag, except that it's been broadening rather than trading in a nice little shape with parallel lines. That makes me a little skeptical of the bullishness implied by a possible bull flag formation, but still willing to give the formation some credence as a possible bull flag. Yesterday, the OEX tried to break through the upside of that flag formation but kept pulling back, finally dropping back in the afternoon into the formation, leaving a longer upper candle shadow behind. If that candle had formed at the top of a rise, it would have looked fairly bearish, but it's just another candle within a building consolidation pattern, so its bearishness can't be completely trusted.

The 15-minute 100/130-pma's have been important indicators for the OEX during much of June, with the OEX bouncing from those averages until Monday, when the OEX gapped beneath them. Tuesday, the OEX gapped back above them, again proving their near-term significance. Tuesday's late-day action saw the OEX dropping below them, rising to test them, and then closing the day just above them, with those averages currently at 552.68 and 552.35, respectively. Last night, futures had dipped slightly after hours, and then did not climb as the Nikkei began its strong climb, almost appearing to wait until there was reassurance that the Nikkei would close higher before they inched up, too. Futures dipped again near the open of the European markets but have climbed since, when it was clear that European markets were going to trade in the green, then have begun drifting down again as I type. I don't know: that just feels kind of tentative, doesn't it? That doesn't engender a lot of faith in the upside, but perhaps our markets are just behaving tentatively ahead of this morning's economic numbers. Since I'm writing this before those numbers are released, I can't be sure how futures will react or where markets will open, but it looks now as if there's a chance that the OEX will open near those 15-minute 100/130-pma's (exponential).

Unfortunately, the OEX appears to be bouncing around between 557 resistance and 547 support, with resistance all the way up to 563-564 and support perhaps dipping down to 543.30-544.57 according to the OEX's daily Keltner chart. Opex weeks are difficult at best, and with the transfer of power in Iraq and the Fed's meeting both looming week after next, market participants just may not know where to take the OEX next. Until a strong directional movement gets going, expect some whipsaws and some goofy trading conditions. Trade with care. Watch the OEX with respect to those 15-minute 100/130-pma's, watch the trend of the TRIN, and make sure all your ducks are lined up in a row if you're going to make a directional bet today. That's particularly true of bullish plays, and here's why: those volatility indices dive when the markets make the slightest move higher, or at least they have been lately, and that dive evaporates some of the premium that has plumped up your options, especially if you entered a play near the open when options prices are inflated. If you're betting on upside, you need to see a sustained and generous move, not a halting one that pauses through long hours at every resistance level.

 
 
  Jonathan Levinson   6/16/200,  8:03:27 AM
Awaiting the 8:30 release of May housing starts (est. 1.95M) and building permits (est. 1.97M), followed by May industrial production (est. .8%) and capacity utilization (est. 77.4%), followed by the 2PM release of the Fed's Beige Book. Greenspan's testimony before Congress is scheduled to begin at 10AM.

 
 
  Linda Piazza   6/16/200,  7:25:25 AM
Good morning. Last night, the Nikkei opened higher by more than 100 points and had packed on another 186 within the first hour and a half of the market's opening. That was to be its high of the day, but still the Nikkei closed higher by 254.02 points or 2.23%, at 11,641.72. According to a Bloomberg article, all this enthusiasm was engendered by Greenspan's use of the word "measured" and his belief that inflation was not a serious threat in his comments yesterday. Computer-related stocks rebounded, banks gained, and at least some of the automakers climbed, with big-caps being mentioned as the biggest gainers. Even Mitsubishi gained. After the close, the company announced plans to further trim costs to offset losses it expects to incur. Those losses are attributable at least in part to slipping sales after the recent scandals. In other stock-specific news, Kyocera is reportedly near the finalization of a deal to buy DDI Pocket from KDDI, with the Carlyle Group participating with Kyocera in the purchase. DDI Pocket is Japan's largest service operator of personal handyphone systems.

Other Asian bourses were mixed. Many airline stocks declined. Also of note is a 4.1% loss in Hynix Semiconductor due to a petition filed in Japan today that asked for countervailing duties to be imposed on DRAM chips made by Hynix and imported into Japan. Elpida Memory, a joint venture of NEC and Hitachi, filed the petition. The Taiwan Weighted lost 1.53%, but South Korea's Kospi was flat, up 0.03%, with some tech stocks trading higher early in the session, but then slipping lower by the close. Singapore's Straits Times gained 0.59% and Hong Kong's Hang Seng gained 0.92%. China's Shanghai Composite gained 0.80%. China's National Bureau of Statistics issued a statement reassuring market watchers that China can avoid serious inflation if local governments adhere to the measures the central government enacts. Wait: was that reassurance or a threat? The bureau mentioned that demand meant that coal, oil, and electrical shortages could still be expected. The bureau also feels that investment growth is too high.

European bourses trade higher this morning. Oracle might have traded down in the after-hours market last night, but its European rival SAP was modestly higher this morning. Although many Asian airline companies traded lower in Wednesday's trading, Deutsche Lufthansa climbs this morning after positive statements coming out of its annual meeting. EADS shows strong gains this morning after Virgin America ordered 18 Airbus aircraft, with EADS being a majority owner of Airbus. Another stock gaining in Wednesday's trading in Europe is Alcatel, as the company approaches completion of a satellite joint venture with an Italian company and announces that Vodafone chose it to increase its network in Ireland. In the U.K., Cable and Wireless climbed after a U.S. District Court dismissed a class action suit against the carrier and Internet services group.

As of this writing, the FTSE 100 has gained 41.70 points or 0.94%, to trade at 4,500.30. The CAC 40 has gained 29.71 points or 0.81%, to trade at 3,713.14. The DAX has gained 19.51 points or 0.49%, to trade at 4,006.81.

 
 
  OI Technical Staff   6/15/200,  8:55:13 PM
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