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Jeff Bailey : 6/26/2006 10:58:48 PM

Index Pivot Matrix found at this Link

Jeff Bailey : 6/26/2006 10:39:34 PM

YM Pivot Matrix for Tuesday at this Link

Jeff Bailey : 6/26/2006 10:15:19 PM

Current OPEN MM Profiles that I've made at this Link

Today's Activity

Stocks/Options

Swing trade short 1/2 position in The New York Times (NYT) at the bid of $23.94. Stop currently $25.00 with target of $21.00.

After cash session close, shares of Take-Two Interactive (TTWO) fell sharply. With options market closed, decided to hedge our puts below target of $10.75 and swing traded long 200 shares at $10.55. PnF bearish vertical count is $10.50. Link

Tuesday morning, after options market opens for trade, I look to close out both positions (long stock and long put position) Last trade in Monday's extended session was $10.30.

YM Futures

I did not profile a YM trade today.

OI Technical Staff : 6/26/2006 9:59:59 PM

The Market Monitor has been archived. You may view it and any previous days here: Link

Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.

Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in most cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.

Jeff Bailey : 6/26/2006 5:33:14 PM

Swing trade filled alert on 200 shares of Take-Two Interactive (TTWO) $10.55 ... $10.20 extended. These shares covered by the Sep $15 Puts (TUO-UC)

Jeff Bailey : 6/26/2006 5:29:21 PM

Take-Two Interactive (TTWO) alert $10.75 ... this was my initial bearish price objective. However, options market is closed. (see solution at 05:22:20 PM EDT)

Jeff Bailey : 6/26/2006 5:22:52 PM

Take-Two (TTWO) $12.87 -1.30% ... $10.89 extended.

Jeff Bailey : 6/26/2006 5:22:20 PM

Take-Two Sep $15 Puts (TUO-UC) hedge alert ... For those currently long two (2) of the TUO-UC, place an order to buy 200 shares at $10.55 GTC Day extended.

Jeff Bailey : 6/26/2006 4:43:54 PM

Take-Two Interactive (TTWO) ... Company Press Release regarding grand jury subpoenas issued by the District Attorney of the County of New York Link

Jeff Bailey : 6/26/2006 4:40:37 PM

Take-Two Interactive (TTWO) alert 12.87 -1.30% ... plunging to $11.44 in extended session.

Jeff Bailey : 6/26/2006 4:38:53 PM

SPX NH/NL finish at 7:11

Jeff Bailey : 6/26/2006 4:38:10 PM

Closing Internals found at this Link

Jeff Bailey : 6/26/2006 4:26:12 PM

Closing U.S. Market Watch found at this Link

Jane Fox : 6/26/2006 4:18:37 PM

Economic Reports tomorrow include:

10a.m. May Existing Home Sales. Consensus: -1.8%. Previous: -2.0%.

10a.m. June Conference Board Consumer Confidence. Consensus: 103.5. Previous: 103.2.

10a.m. June Richmond Fed Manufacturing Index. Previous: 1.

Jeff Bailey : 6/26/2006 3:49:20 PM

Citigroup (C) $48.27 +1.11% Link ...

Jeff Bailey : 6/26/2006 3:48:34 PM

U.S. Fed Ends Order Against Citigroup For Subprime Lending

Jane Fox : 6/26/2006 3:30:02 PM

The 10-year Tnote has already made new yearly lows. Link

Jane Fox : 6/26/2006 3:29:01 PM

Here is a daily chart of the 30-year TBonds. Almost to new yearly lows. This is of course not good for stocks because it means yields are rising. Link

Jeff Bailey : 6/26/2006 3:23:27 PM

Conoco Phillips (COP) $62.04 +1.27% ... DJ- CEO saying company is interested in Iraq Refining Sector

Investment contingent on stable Iraq

Seeking refining joint venture with Lukoil

Jeff Bailey : 6/26/2006 3:19:05 PM

Takeover Battle For Inco-Falconbridge May Not Be Over

DJ- The takeover battle for Inco Ltd. (N) and Falconbridge Ltd. (FAL) may be far from over, several analysts and fund managers told Dow Jones.

All eyes are on Xstrata PLC (XTA.LN) and Teck Cominco Ltd. (TEK.B.T), as neither has weighed in yet on Phelps Dodge Corp.'s (PD) bid for a combined Inco-Falconbridge entity.

The high-stakes takeover smorgasbord could rope in even more players, as other large mining companies take stock of high base-metal prices and assess whether they can afford not to get involved in the bidding for such prized assets. And companies that are in the acquirer role could quickly find themselves on the receiving end of a takeover bid.

Other factors that could affect the outcome of the existing bids for Inco and Falconbridge, and any further bids for the two Canadian mining companies, are regulatory approvals, fluctuating share prices, shareholder reaction and Falconbridge's shareholder rights plan.

A Teck Cominco spokesman said the firm is reviewing the Phelps bid. A lawyer representing Xstrata said the Anglo-Swiss mining giant is also reviewing the Phelps Dodge bid.

For the uninitiated, Teck Cominco has bid 0.6293 of a Class B Teck share plus C$28 in cash for each Inco share. The bid is conditional on Inco's bid for Falconbridge not being completed. Xstrata has bid C$52.50 in cash for the 80% of Falconbridge that it doesn't already own.

On Monday, Phelps Dodge, an Arizona-based mining giant, announced a US$40 billion merger with Inco and Falconbridge. The deal allows Inco to raise its standing offer for Falconbridge. Inco increased the cash component of its bid by C$5.00 a share to C$17.50, and raised the share component of the bid to 0.55676 of an Inco share for each Falconbridge share from 0.524.

Phelps Dodge is offering cash and stock that values the combined Inco-Falconbridge entity at C$80.13 a share based on Phelps Dodge's Friday close of US$82.95. The bid includes a cash component of C$17.50 a share plus 0.672 of a Phelps Dodge share for each Inco share.

Phelps Dodge stock is down 7.7% to US$76.58 in New York Monday, meaning its offer now values Inco at C$74.62. If the stock continues to fall it would make it easier for a third party to top the firm's bid.

That third party could be Xstrata, or a joint Xstrata-Teck Cominco bid, analysts said. "There's no reason Xstrata and Teck can't come back," can't team up to trump the Phelps Dodge bid, said Ron Mayers, head of alternative strategies at Desjardins Securities.

Mayers owns shares of Inco and Falconbridge and is short Teck Cominco and Phelps Dodge. When an investor shorts a stock he profits when the share price declines.

Mayers said that, even at C$80 a share, he believes the Inco-Falconbridge entity is undervalued, estimating the combined entity is worth C$90 a share.

Research Capital's Shelton Yip said the Phelps Dodge bid was designed to be a "knock-out" punch, and in his view, it was a pretty effective one. He said he believes it will be a "stretch" for Teck Cominco to top Phelps Dodge's bid for Inco-Falconbridge and that, if Teck and Xstrata were going to team up they would have already.

One portfolio manager for an investment-management firm that holds shares of all the parties echoed Mayers' view, saying he believes Xstrata could partner with Teck Cominco to top Phelps Dodge. Under that scenario, Teck Cominco and Xstrata could buy the combined Inco-Falconbridge entity and then, after the deal, Teck could sell Falconbridge to Xstrata, the manager said.

One stumbling block to a joint Teck-Xstrata bid is the massive US$925 million break-up fee under the Phelps Dodge deal, the manager said. He said he believes the fee is too high. "Don't tell me it's a smaller percentage of a bigger deal, it's an outrageous thing and it should be voted down by shareholders," he said.

Jeff Bailey : 6/26/2006 3:15:34 PM

S. Korea to Join U.S. Clean-Coal Power Plant Prototype

Jeff Bailey : 6/26/2006 3:14:04 PM

03:00 Internals found at this Link

Jane Fox : 6/26/2006 3:09:15 PM

KALAMAZOO, Mich., June 26 /PRNewswire-FirstCall/ -- Stryker Corporation (NYSE:SYK) announced today that it has received a subpoena from the United States Department of Justice, Antitrust Division requesting documents for the period January 2001 through the present regarding possible violations of federal criminal law, including possible violation of the antitrust laws, relating to the manufacture and sale of orthopaedic implant devices. Similar requests have been directed to other companies in the orthopaedics industry. Stryker intends to fully cooperate with the Department of Justice regarding this matter.

Stryker Corporation is one of the world's leading medical technology companies with the most broadly based range of products in orthopaedics and a significant presence in other medical specialties. Stryker works with respected medical professionals to help people lead more active and more satisfying lives. The Company's products include implants used in joint replacement, trauma, craniomaxillofacial and spinal surgeries; biologics; surgical, neurologic, ear, nose & throat and interventional pain equipment; endoscopic, surgical navigation, communications and digital imaging systems; as well as patient handling and emergency medical equipment. Stryker also provides outpatient physical therapy services in the United States.

Jeff Bailey : 6/26/2006 3:02:55 PM

03:00 Market Watch found at this Link

Jane Fox : 6/26/2006 2:58:07 PM

Stryker (SYK) receives subpoena from justice department on possible violations of antitrust laws
SYK says plans to fully comply with justice department
SYK shares down $2.75 at $42.13

Jeff Bailey : 6/26/2006 2:43:32 PM

CBOT Holdings (BOT) $114.16 +3.23% Link ... edges above WEEKLY R1 ($114.02)

Jeff Bailey : 6/26/2006 2:32:34 PM

France's Chirac: No Intention Of Changing Government

Affirms Confidence In Prime Minister

Jeff Bailey : 6/26/2006 2:30:03 PM

EIA: U.S. April Jet Fuel Use -2% Vs. Estimate; +2.7% On Year

Jeff Bailey : 6/26/2006 2:29:26 PM

EIA: U.S. April Gasoline Demand Unch Vs. Year Ago At 9.14M B/D

Jeff Bailey : 6/26/2006 2:28:35 PM

EIA: U.S. April Oil Demand Unch vs. Year-ago At 20.18M B/D

Jeff Bailey : 6/26/2006 2:27:57 PM

EIA: U.S. April Oil Demand Cut 1.8% vs. Estimates

Jeff Bailey : 6/26/2006 2:24:05 PM

Might have to make a trip down to the newsstand today and see how many pages the NYT has. Expecting some ads to be pulled next couple of weeks, paper to get a little thinner.

Jane Fox : 6/26/2006 2:18:07 PM

I agree Jeff the NYT chart is disgraceful and the 1/2 short is an excellent play. Link

Jeff Bailey : 6/26/2006 2:16:38 PM

Swing trade short 1/2 position alert ... for the New York Times (NYT) $23.94 +0.40% here, stop $25.00, target $21.00

Jeff Bailey : 6/26/2006 2:13:40 PM

New York Times (NYT) $23.95 +0.54% Link ... This chart is "disgraceful!"

Jane Fox : 6/26/2006 2:12:46 PM

I don't often agree with Mr. Bush but this time I do.

Jeff Bailey : 6/26/2006 2:11:56 PM

President Bush Says NY Times' Report Disgraceful

DJ- President Bush calls The New York Times' report of a secret financial-monitoring program "disgraceful" and says program's disclosure makes it harder to fight terrorism.

Jeff Bailey : 6/26/2006 2:10:05 PM

BOSTON SCI NOT SURPRISED BY RECALL (see 10:06:50 AM EDT)

DJ- CEO says he isn't surprised to find another issue that sparked a recall with heart rhythm devices acquired in Guidant purchase, adds enthusiasm for the deal hasn't wavered.

BSX $16.94 -7.22% ...

Jeff Bailey : 6/26/2006 2:06:46 PM

Kraft Foods (KFT) $31.10 +0.51% Link ... DJ- Food and beverage company says it is replacing its chief executive, Roger K. Deromedi, with Irene B. Rosenfeld, chairman and CEO of Frito-Lay. Analysts say move isn't surprising and may portend other changes.

Jane Fox : 6/26/2006 2:05:53 PM

NASDAQ MOST ACTIVE STOCKS: SIRI SUNW MSFT INTC ORCL

NYSE MOST ACTIVE STOCKS: BSX PD PFE LU GE

Jeff Bailey : 6/26/2006 2:04:49 PM

MEDICAL JOURNAL CORRECTS VIOXX STUDY

DJ- In a possible boon for plaintiffs' attorneys who have clashed with Merck on how quickly Vioxx's risks emerge in patients, the New England Journal of Medicine correct statements regarding heightened risk of heart attacks for patients who used Vioxx for more than 18 months.

MRK $35.16 +0.62% Link

Jeff Bailey : 6/26/2006 2:02:13 PM

euro 1.259

Jeff Bailey : 6/26/2006 1:59:45 PM

Italians Reject Constitutional Changes

DJ- Italians soundly rejected massive changes to the country's postwar constitution that proponents had argued would increase political stability and modernize the country, final returns showed Monday.

The results at the end of the two-day vote marked a victory for the center-left government of Romano Prodi, who had said change was necessary but opposed these reforms as giving too much power to the executive. Final results showed that 61.7% had voted against the reforms, while 38.3% had approved them.

Jeff Bailey : 6/26/2006 1:58:28 PM

Conoco Phillips (COP) $61.74 +0.78% Link ... CEO saying another acquisition "very unlikely." "Capital program is near-term focus."

Jeff Bailey : 6/26/2006 1:56:33 PM

Take-Two Interactive (TTWO) $12.94 -0.76% Link ... Gives back earlier gains of $13.41. Sets up for test of recent 52-week low ($12.70) from 6/12/06.

WEEKLY Pivot Levels ... $12.37, $12.70, Piv= 13.09, $13.42, $13.80.

Jane Fox : 6/26/2006 1:55:16 PM

Here is an interesting chart. Oil is bullish and here is an Oil company about to make a bullish move above a downward trendline. If SLB closes above the yellow May trendline and the 20EMA I would consider a long with a stop below yearly lows. This is a swing play on the bullish Oil chart. Link

Jeff Bailey : 6/26/2006 1:49:35 PM

Canada's OECD Sees Country's Medium Term Econ Outlook As Favorable

DJ- Canada's medium-term economic outlook is favorable, and performance so far has been "excellent," showing a "remarkable capacity" to adjust to a strong currency and soaring commodity prices, the latest Organization of Economic Cooperation and Development survey on the country released Monday said.

Canadian government finances are in good shape and debt burden has been falling as a result of good fiscal management, the Paris-based think-tank said in the 149-page report. Its last survey on Canada was in September 2004.

"Good framework conditions should allow the economy to grow at rates close to potential, with little inflation pressure over the medium term," the OECD said.

The think-tank, which expects Canada's gross domestic product to expand 3.1% in 2006 and 3.3% in 2007, said large sectoral and regional shifts in the economy make it more difficult to conduct monetary policy.

It noted that monetary policy can only operate at the national level and "current settings may not be appropriate for some fast-growing provinces." So fiscal policy in these provinces has to adjust to avoid overheating of the economy, it added.

Canada's key challenges are to lift productivity and maintain sustainable fiscal and social policies to deal with the issues arising from one of the fastest population aging process in the OECD.

"One major policy lever that could enhance productivity growth is to make sure the environment for businesses is conducive to economic development," the think-tank said.

Businesses aren't competing on a level playing field because government policies favor some at the expense of others, undermining the scope to maximize productivity growth, the OECD said.

Canadian businesses face high marginal effective tax rates on investment. At the same time, governments offer a wide range of subsidies that inhibit competition.

"A better approach would be to create a level playing field across Canada by lowering taxes on corporate investment, reducing subsidies and tax expenditures, and fostering vigorous competition in all markets," the OECD said.

Among other things, it recommended abolishing capital taxes and switching from provincial stales tax to a provincial value-added tax where relevant. Provinces should lower taxes on business and raise value-added taxes.

Access to well-functioning financial markets will likely foster investment and productivity. "But regulatory settings result in some barriers to competition in the banking sector, limit effective access to international capital markets and prevent economies of scale from emerging in securities markets," the OECD said.

"More generally, two other factors may inhibit gains in efficiency: lack of clarity on bank merger policy and the limits on shareholding to ensure wide ownership," it added.

Among other things, the think-tank recommended eliminating the need for bank mergers to receive political approval, and streamlining rules on the entry of foreign banks.

The think-tank noted that competitive pressures are generally strong in Canada because most barriers to international trade have been dismantled and administrative regulations that inhibit competition are among the lowest in the OECD.

But there are still significant barriers in some sectors, notably airlines, telecommunications and broadcasting, electricity, and professional services.

"Easing FDI (foreign direct investment) restrictions would make it easier for Air Canada to access fresh capital and management and help it to operate more competitively, as well as facilitating new entrants from third countries," the OECD said.

It recommended lifting FDI restrictions in airlines, telecommunications and broadcasting, and suggested that the highly regulated electricity markets should be liberalized.

The OECD noted that subsidies in sectors such as aerospace and automotive, the agricultural supply management schemes and some elements of unemployment insurance "distort the competitive environment and add more hills to the playing field."

It recommended that agricultural supply management schemes should be wound up and the government should instead allow prices in open markets to balance supply and demand.

The think-tank said measures to improve the business environment should be complemented by policies to stimulate innovation through research and development and upgrading skills, among other things.

The OECD said the federal government should ensure that fiscal arrangements with the provinces are efficient and reinforce accountability for outcomes.

To this end, it will be key to ensure that the 2004 healthcare accord struck with the provinces by the previous Liberal government remains durable without renegotiation, the think-tank said.

Revamping the "equalization" system with the provinces is of immediate priority as Canada will likely face significant regional and industrial adjustments to continue high oil prices, the OECD added. Under the program, the federal government transfers funds to the provinces in order to equalize government service levels among them.

Jeff Bailey : 6/26/2006 1:38:39 PM

S&P Banks (BIX.X) 368.18 +0.58% ... set to challenge WEEKLY Pivot.

Jeff Bailey : 6/26/2006 1:37:42 PM

Qatar Oil Minister: September OPEC Decision Depends On Oil Prices

Jeff Bailey : 6/26/2006 1:34:23 PM

Current OPEN MM Profiles found at this Link

Jeff Bailey : 6/26/2006 1:14:32 PM

Russell 2000 ($RUT.X) 696.64 +0.94% ... shows relative strength not only on percentage basis, but WEEKLY Pivot as well. Morning high finds trade at WEEKLY R1 (697.70).

Jeff Bailey : 6/26/2006 1:11:48 PM

SPX NH/NL currently 5:9

Jeff Bailey : 6/26/2006 1:11:18 PM

01:00 Internals found at this Link

Jeff Bailey : 6/26/2006 1:03:27 PM

01:00 Market Watch found at this Link

Tab Gilles : 6/26/2006 12:57:23 PM

$BPENE/MUR Link

Jeff Bailey : 6/26/2006 12:56:51 PM

06/16/06 to 06/23/06 Sector Bell Curve found at this Link

Jeff Bailey : 6/26/2006 12:49:16 PM

OIX.X 584.17 +0.48% ... conventional 4-point box Link

Jeff Bailey : 6/26/2006 12:47:17 PM

Sector Bullish % Status Changes (Friday) According to Dorsey/Wright & Associates, OIL reversed up to "bull alert" status from "bear confirmed." Current reading 28.98% after recent relative low reading of 22%.

It would currently take a 50% reading for this sector to achieve "bull confirmed" status.

Jeff Bailey : 6/26/2006 12:40:37 PM

Suncor Energy (SU) $74.49 +1.36% Link ... Completes upgrade to Commerce City, CO refinery Link

Jeff Bailey : 6/26/2006 12:28:43 PM

Phelps Dodge / Inco / Falconbridge (comments)

DJ- Commodity prices should stay high enough to make the acquisition of Inco Ltd. (N) and Falconbridge Ltd. (FAL) by Phelps Doge Corp. (PD) pay off, according to a base-metals analyst.

"Prices will be stronger for longer," said Robin Bhar, a UBS analyst in London, because "buoyant demand" from rapidly emerging economies like China and India and continued growth in Europe, the U.S. and Japan will continue to run up against the investment "famine" in supply over the last 10-15 years.

The trend of fund managers diversifying their portfolios towards commodities will also help keep prices up, Bhar added.

"Even if you think prices will correct, they won't correct back to prices we saw at the beginning of the century," he said. Copper reached a peak of about $9,000/ton earlier this year after trading at $1,400-$1,600/ton in 2001-2002. It closed today at about $6,770/ton. Bhar forecasts a possible drop to $5,000/ton in the next 3-6 months, but that's still well above the $2,700/ton or $1.30/pound he calculates is the "incentive price" needed for companies to invest in increasing supply.

A source close to the Phelps-Inco deal said the takeover makes financial sense if copper stays above $1.20/pound.

Nickel, meanwhile, rallied to about $23,000/ton from $4,000/ton in the same interval, and closed today at about $19,200/ton. The incentive price for nickel is about $9,918/ton or $4.50/pound, Bhar calculates. "We believe nickel will hold up better because it has stronger fundamentals," he said.

Taken together, the factors suggest the deal will work, said Bhar. "Phelps has implied that they think prices will stay higher and make this deal viable," he added. "They tend to be a very conservatively run company, so it doesn't really seem that they would be using high prices just to make this deal look good. They're going to want to make this a robust deal so even if prices went down sharply, it would still work."

The recent wave of mergers and acquisitions won't affect base metals prices in the short term but will help smooth the commodities cycle over the next 20-30 years, Bhar said. Much of the "low-hanging fruit" has already been acquired by the big players but consolidation could continue among second-tier producers, he added.

PD $75.92 -8.46% Link

N $65.27 +12.03% Link

FAL $52.10 +5.67% Link

Jeff Bailey : 6/26/2006 12:04:12 PM

August Nat Gas (ng06q) $6.185 -3.60% ... breaks prior relative lows found on 06/07/06 of $6.20.

Jeff Bailey : 6/26/2006 11:34:58 AM

11:22 Internals found at this Link

Jane Fox : 6/26/2006 11:28:41 AM

NASDAQ MOST ACTIVE STOCKS: MSFT SIRI INTC ORCL FNSR

NYSE MOST ACTIVE STOCKS: BSX PD PFE JNJ KMG

Jeff Bailey : 6/26/2006 11:24:35 AM

11:22 Market Watch found at this Link

Tab Gilles : 6/26/2006 11:26:42 AM

Are we at or near a bottom?

$COMPQ $NAHILO $BPCOMPQ $NASI Link

$COMPQ $NAHGH $NALOW $NAHL Link

$COMPQ $NAA200R 150R 50R Link

$SPX $NYHILO $BPSPX $NYSI Link

$SPX $NYHGH $NYLOW $NYHL Link

$SPX $SPXA200R $SPXA150R $SPXA50R Link

Jeff Bailey : 6/26/2006 11:17:56 AM

CBOT's Chairman Testifies Before U.S. Senate Energy & Natural Resources Committee Regarding the CBOT's Ethanol Futures Contract

Company Press Release Link

BOT $112.32 +1.57% Link

Jeff Bailey : 6/26/2006 11:09:01 AM

CME Regional Housing Futures Link

Jeff Bailey : 6/26/2006 11:07:15 AM

Citigroup Cuts South African Equities, Ups Poland Stocks

Jeff Bailey : 6/26/2006 11:06:24 AM

President Bush: Disclosure Of Financial Data Program Hurts War On Terror

Jeff Bailey : 6/26/2006 10:51:54 AM

HOME DEPOT SAYS INFORMAL PROBE OF OPTIONS

DJ- Home Depot says the Securities and Exchange Commission has initiated an informal inquiry over its stock option grant practices.

HD $36.60 +0.52% Link ...

Jeff Bailey : 6/26/2006 10:50:20 AM

NEW YORK IS US'S COSTLIEST CITY, MOSCOW TOPS WORLD

DJ- New York remains North America's costliest city and is surpassed by only nine other cities on the planet, according to a survey released today that names Moscow as the world's priciest destination.

Jeff Bailey : 6/26/2006 10:49:30 AM

US REVISES MAY BUILDING PERMITS

DJ- Commerce Department now says permits drop 1.4% last month, not the 2.1% decline the agency reported Tuesday. In last week's data, department said housing starts climb 5%.

Jeff Bailey : 6/26/2006 10:47:27 AM

BAIN CAPITAL LEADS BIDDING TO BUY JONES APPAREL

DJ- Bain Capital emerges as the leading contender to buy Jones Apparel, reports The Wall Street Journal, though it remains to be seen whether the two sides can come to a final agreement. Jones has a market capitalization of about $3.53 billion.

JNY $31.72 +1.05% Link

Jeff Bailey : 6/26/2006 10:44:07 AM

WALGREEN 3Q NET UP 14%, TOPS VIEWS

DJ- Drug-store chain earns $469.2 million, or 46c a share, in its fiscal 3Q, as sales rise 12% to $12.2 billion. Analysts polled by Thomson First Call forecast EPS of 44c on sales of $12.14 billion.

WAG $43.93 +0.73% Link ...

Jeff Bailey : 6/26/2006 10:39:50 AM

Dallas Fed June Mfg. Production Index 38.1 vs. May's 31.9

Business Activity 16.1 vs. May's 23.9

Jeff Bailey : 6/26/2006 10:36:47 AM

LENNAR TRIMS 2ND-HALF GUIDANCE

DJ- Home builder reports a bigger-than-expected 39% increase in 2Q net income to $324.7 million, or $2 a share, as sales rise 56% to $4.6 billion. But Lennar cuts 2006 EPS guidance to $8-$8.25 from $9.25, expecting an industry slowdown.

LEN $46.18 +3.68% Link ...

Jeff Bailey : 6/26/2006 10:32:08 AM

Nucor (NUE) $51.60 +0.43% Link ...

Jeff Bailey : 6/26/2006 10:31:27 AM

U.S. Steel (X) $64.97 +1.46% Link ...

Jeff Bailey : 6/26/2006 10:30:33 AM

ARCELOR AGREES TO BE BOUGHT BY MITTAL

DJ- Mittal will pay $33.84 billion in cash and stock for Arcelor, ending five months of bitter fighting. The deal would create the world's largest steelmaker, with more than 10% of the global market. MT $30.43 -5.40% Link

Jeff Bailey : 6/26/2006 10:24:12 AM

Current OPEN MM Profiles that I've made at this Link

Jane Fox : 6/26/2006 10:16:56 AM

WE certainly had some gyrations around the New Home Sales numbers but things have settled down and I have to back off my statement that I think the bulls will win. Right now I just don't know because the internals are still out of sync.

Jane Fox : 6/26/2006 10:15:11 AM

NEW YORK -- Since former Gap Inc. chief executive officer Millard Drexler took over the leadership of J.Crew Group Inc. in 2003, the merchandising guru has worked magic on the once-struggling retailer, transforming it into one of the hottest fashion chains.

Now, the New York-based fashion retailer known for its colourful preppy clothing plans to go public this week in what's being touted as one of the biggest retail IPOs in recent years. How successful J.Crew will be in the public market is unclear, but its success with consumers has been a bright spot in an industry continually undergoing consolidation.

J.Crew should also be able to weather an expected consumer spending slowdown later this year because its well-heeled customers seem to care more about getting the latest cargo jacket than they do about higher gas prices.

Jane Fox : 6/26/2006 10:13:56 AM

J. Crew deal is week's featured IPO

Jeff Bailey : 6/26/2006 10:11:35 AM

U.S. May New Home Sales Unexpected Rise

DJ- U.S. new-home sales unexpectedly rose in May at their fastest pace since December, as sales climbed sharply in the South and the West.

Sales of single-family homes increased 4.6% last month a seasonally adjusted annual rate of 1.234 million, the Commerce Department said Monday. Year over year, new home sales were still down 5.9% from the pace in May 2005.

Wall Street had expected a drop in sales last month. The median estimate of 11 economists surveyed by Dow Jones Newswires and CNBC was for the May data to show a 4.0% decline from the previous month to a 1.150 million annual rate.

Economists are watching housing data closely to gauge the magnitude of an anticipated slowdown in residential real estate activity following years of torrid market growth that has buoyed consumer sentiment and spending.

The unexpected increase in new home sales could have an effect on monetary policy. The Federal Reserve is widely expected to raise short-term interest rates again when it meets Wednesday and Thursday, extending a two-year credit tightening cycle in an effort to restrain inflation. But the course of the housing market could be an major influence on future decisions.

In the statement accompanying its last rate hike, in May, the Fed's policy-setting Federal Open Market Committee said slower economic growth was likely, "reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices."

While the direction of housing market indicators has not been uniform, so far this year's data generally have shown a slowdown. Last week the National Association of Home Builders reported its index for new home sales fell to its lowest level in more than 11 years.

At its meeting this week, the FOMC will have another housing market metric to consider, as the National Association of Realtors is scheduled to report Tuesday on May's existing home resales.

In Monday's report on new home sales, Commerce said May sales climbed 6.0% in the South, reaching their highest point since October. Meanwhile, sales were up 5.3% in the West, reaching their higest point since January, and they were up 2.7% in the Midwest.

But in the Northeast, sales were down 7.9%, hitting the lowest regional level since July 2004.

Home prices fell last month. The average price of a home dropped to $294,300, down from an upwardly revised $302,200 in April. Meanwhile, the median price dropped to $235,500 from an upwardly revised $245,900. Compared with a year earlier, the average price in May was 2.4% higher, and the median price was 2.9% higher.

There were an estimated 556,000 homes for sale at the end of May, down from April's record 560,000. May's inventory represented a 5.5 months' supply at the current sales rate. In April, the inventory represented 5.8 months at the current sales rate.

An estimated 114,000 homes were actually sold last month, up from 105,000 in April, based on figures not seasonally adjusted.

Jeff Bailey : 6/26/2006 10:08:37 AM

April New Home Sales Revised Down to 1.180M From 1.198M

Jane Fox : 6/26/2006 10:08:26 AM

* New home sales down 5.9% in past 12 months
* April new home sales revised lower to 1.180mln
* May median home price up 3.1% y-o-y at $235,300
* May new home inventory falls 0.7% to 556,000
* may new home sales up 4.6% to 1.23mln. Vs 1.15 expected

Jeff Bailey : 6/26/2006 10:08:06 AM

May New Home Sales +4.6% To 1.234M; Est. 1.150M

Jeff Bailey : 6/26/2006 10:06:50 AM

BOSTON SCI RECALLS SOME PACEMAKERS

DJ- Company says a supplier's low-voltage capacitor isn't performing to expectations. Recall is for three types of pacemakers and three versions of defibrillators held by sales force and hospitals.

BSX $17.37 -4.87% Link

Jane Fox : 6/26/2006 10:06:37 AM

AUGUST CRUDE FALLS 32 CENTS TO $70.55/BRL IN EARLY TRADING

JULY NATURAL GAS DOWN 22.6 CENTS, OR 3.6%, AT $6/MLN BTUS

Jeff Bailey : 6/26/2006 10:02:41 AM

10:00 Market Watch found at this Link

Jane Fox : 6/26/2006 10:02:07 AM

VIX and TRIN are now falling but so is the AD line and Volume. ARGHH!!!!

Jane Fox : 6/26/2006 10:02:38 AM

This is a very bullish chart. Notice how it breaks a month long consolidation and the MACD crosses above the 0 line. Link

Jane Fox : 6/26/2006 9:59:01 AM

... but the acquirees climb. Link

Jane Fox : 6/26/2006 9:58:29 AM

In the M&A world the acquirer usually falls. Link

Jane Fox : 6/26/2006 9:29:29 AM

I will post charts of all the companies affected by overnight news when the market opens.

Jane Fox : 6/26/2006 9:27:00 AM

Dateline WSJ Johnson & Johnson (JNJ) announced Monday it agreed to purchase a stable of household consumer brands from Pfizer (PFE) Inc. for $16.6 billion.

Over the weekend, J&J was locked in a bidding war with British pharmaceutical company GlaxoSmithKline PLC, and it is still possible the final results could change if Glaxo re-emerges, a person familiar with the matter said.

J&J, Glaxo and the United Kingdom's Reckitt Benckiser PLC have been keen to purchase Pfizer's consumer brands, which include such products as Bengay pain-relieving cream, Visine eyedrops and Sudafed cold tablets.

Wall Street values consumer-products companies at a price-to-earnings ratio of about 20 times, compared with about 15 times for pharmaceutical companies. That made it attractive for Pfizer to sell the brands, and it appears to have exceeded its original price expectations of about $14 billion.

Jane Fox : 6/26/2006 9:24:35 AM

PHELPS DODGE: DEAL TO PUT IT TO #67 FROM #164 IN S&P 500

Jane Fox : 6/26/2006 8:58:19 AM

Rydex's currencies ETFs are called CurrencyShares and will be offered for the British Pound, Canadian Dollar, Australian Dollar, Swiss Franc, Swedish Krona and the Mexican Peso.

Jane Fox : 6/26/2006 8:51:24 AM

If you want to start trading the currencies without dipping into the very volatile Forex market you should be happy that Rydex will launch six currency ETFs today. I will give more information as it comes available.

Jane Fox : 6/26/2006 8:49:52 AM

The overnight session for Bonds, Oil and Gold was a big yawn. These markets certainly did not react to the PD new. Link

Jane Fox : 6/26/2006 8:45:13 AM

INCO UP 12.2% AT $65.39 PREMARKET

PHELPS DODGE DOWN 6.2% AT $77.85 PREMARKET

Jane Fox : 6/26/2006 8:40:35 AM

Dateline WSJ Phelps Dodge (PD) Corp. announced an agreement to acquire Canadian mining companies Inco (N) Ltd. and Falconbridge (FAL) Ltd. in a roughly $40 billion deal that would thrust the combined company into the ranks of the industry's giants.

All three companies' boards have approved the transaction, people familiar with the matter said.

If completed, the deal would create the largest mining company based in North America, with about 40,000 employees and operations in 40 countries. The new company is expected to be named Phelps Dodge Inco Corp., with headquarters in Phelps's hometown of Phoenix. It would be the world's second-largest producer by tonnage of both copper and molybdenum -- a mineral used to harden steel -- and the world's largest producer of nickel, emerging alongside mining behemoths such as BHP Billiton Ltd. of Australia and London-based Rio Tinto PLC.

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