Market Soapbox 05/03/05

Go look at the Applets on the Sidebar!

Resistance: DJIA 10370; SP500 1170; Nasdaq 1975; NDX 1460
Support: DJIA 9900 ; SP500 1125 ; Nasdaq 1870; NDX 1375
Strong: materials, tech, software, biotech, airline, retail
Weak: finance, telecom, energy, industrials, utility, homebuilding, transportation, semi, oil, gas
52 Week HiLo: NYSE 49/40; Nasdaq 37/76; Amex 20/29
A/D Volume: NYSE 761/1215, Nasdaq 1114/662, Amex 35/170
Volume: NYSE 1.994B, Nasdaq 1.799B

Upcoming Notable reports:
FRI: Employment Situation (est 5.3%, Mar 5.2%)

Factory Orders +0.1%, (est -1.3%, Feb -0.5%), +0.6% in one month, there are some underlying signs of growth.

European (DAX +0.51%) & Asian markets (Nikkei 225 UNCH) were split. Dollar up vs. Yen/Euro, gold, commodities, oil & bonds down. Contra action: Cash Oil was up, energy & transports down.

Domestic auto and truck sales were down, factory orders up, FOMC +25 basis points and an accidental omission of the phrase "well contained" caused some excitement on the trading floor.

The market rolled sideways in a flatline till 2:15EST, after the FOMC announcement it herky jerked all over, winding up where it started the day, ending on a split tape.

Overall a day of mixed results, 9 of 13 SP500 companies reporting beat the number, 7 of 10 sectors gained, volume was higher than yesterday, tech got a bid, biotech big.

Oil whipsawing and pullback continues: -10% last week, futures prices fell to a new two-month low $49.60, - 2.8% today. Do I hear $42 yet? No. Natural Gas, Oil & Transports were losers.

Today's Sooey!! award goes to: Lehman Brothers for upgrading AMR, American Airlines from equal to overweight. Income -757 Million, Net Profit Margin -4%, negative EPS 7 of 9 quarters. Even with falling oil, this is a sinking ship, bankruptcy and pension plan avoidance to come.

Honorable squeals go to UBS for upgrading Google from neutral to buy with a $275 target. 88 to 1 PE , 112 to 1 price to cash flow, price to book 21 to 1, price to sales 16 to 1. Market cap 62B on income of 704M. Up $3.90 to close @ $226.

Google is at best an $8-10 stock and stands as testimony to the mass stupidity of the public. This is Qualcomm and dot com deja vu, all over again. Just unbelievable, do they ever learn?

This was not a consolidation day, but the good news: DJIA covered his gap up @ 10278. Tomorrow there is little to move the market and it could go either way. I suspect a down or split tape day. Just my opinion, I could be wrong.

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