Monday’s US Market Wrap

by: Between the Hedges

From Between the Hedges:

Stocks Finish Lower, Pressured by Falling Energy Shares and Higher Long-Term Rates

S&P 500 1,278.26 -.70%
DJIA 10,958.59 -.57%
NASDAQ 2,286.03 -.72%
Russell 2000 731.16 -.99%
Wilshire 5000 12,888.41 -.73%
S&P Barra Growth 604.44 -.71%
S&P Barra Value 670.33 -.68%
Morgan Stanley Consumer 601.24 -.48%
Morgan Stanley Cyclical 782.29 -1.04%
Morgan Stanley Technology 535.86 -1.01%
Transports 4,470.19 -.87%
Utilities 400.91 -2.66%
Put/Call .90 +4.65%
NYSE Arms .96 +10.28%
Volatility(VIX) 12.74 +6.52%
ISE Sentiment 146.00 -13.61%
US Dollar 89.89 +.26%
CRB 325.25 -1.84%

Futures Spot Prices
Crude Oil 62.17 -.38%
Unleaded Gasoline 165.60 -5.0%
Natural Gas 6.55 +.05%
Heating Oil 175.46 -.18%
Gold 556.70 -.02%
Base Metals 167.33 -1.64%
Copper 220.35 +.34%
10-year US Treasury Yield 4.73% +1.24%

Leading Sectors
REITs +1.90%
Telecom +1.53%
Wireless +1.50%

Lagging Sectors
Energy -3.21%
Gold & Silver -3.34%
Oil Service -4.02%

Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
Goldman Sachs:
- None of note

Afternoon/Evening Headlines
- Fresh Del Monte Produce(NYSE:FDP), which sells 40% of the world’s pineapples, said it will buy back as much as $300 million of its stock over the next three years.
- NBC Universal will buy iVillage(IVIL) for about $600 million, gaining a group of women’s Web sites and bolstering a push into the Internet.
- AT&T’s(NYSE:T) $67 billion purchase of BellSouth(BLS) likely will sail through the FCC’s approval process, two former FCC chairman said.
- Cubist Pharmaceuticals’(CBST) Cubicin was unanimously recommended by a US advisory panel as a treatment for staph infections of the bloodstream.
- Texas Instruments(NYSE:TXN) said 1Q sales will be $3.22 billion to $3.35 billion, compared with a prior forecast of $3.11 billion to $3.38 billion.
- US Treasuries fell today, pushing the benchmark 10-year note’s yield to the highest since June 2004.
- Carnival Corp.(NYSE:CCL) will start offering cruises to Chinese travelers in July, its first expansion into the cruise industry in Asia.
- Biogen Idex(NASDAQ:BIIB) and Elan’s(NYSE:ELN) drug Tysabri is more effective than other multiple sclerosis therapies and needs a strict safety plan to control the risk of a fatal brain disease, US regulators said.
- Oil fell as ministers from OPEC signaled that they intended to keep production close to a 20-year high.

BOTTOM LINE: The tone of the market was negative today as the advance/decline line finished lower, sector performance was mostly negative and volume was above average. Measures of investor anxiety were higher into the close. Overall, today's market performance was slightly bearish. At this point, with the 10-year Treasury note yield still historically low and 19 basis points below levels seen in 2004, it appears equity investors are overreacting. Energy-related stocks closed near session lows, down about 3%-4%. This could temporarily pressure the broad market, but is a big positive for the intermediate term.
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