Tuesday's US Market Wrap

by: Between the Hedges

From Between the Hedges:

Stocks Finish Near Lows after Fed Rate Hike and Rise in Oil  

S&P 500 1,293.23 -.64%
DJIA 11,154.54 -.85%
NASDAQ 2,304.46 -.48%
Russell 2000 751.27 -.37%
Wilshire 5000 13,060.13 -.54%
S&P Barra Growth 609.39 -.58%
S&P Barra Value 680.59 -.71%
Morgan Stanley Consumer 610.99 -.67%
Morgan Stanley Cyclical 810.59 -.47%
Morgan Stanley Technology 536.60 -.64%
Transports 4,532.17 -.57%
Utilities 393.92 -.57%
Put/Call 1.01 +20.24%
NYSE Arms 1.34 +46.16%
Volatility(VIX) 11.57 +.96%
ISE Sentiment 140.00 +2.19%
US Dollar 90.20 +.14%
CRB 331.66 +1.21%

Futures Spot Prices
Crude Oil 65.95 -.18%
Unleaded Gasoline 187.90 -.29%
Natural Gas 7.24 +.49%
Heating Oil 183.10 +.18%
Gold 567.00 unch.
Base Metals 178.17 -.30%
Copper 242.85 unch.
10-year US Treasury Yield 4.78% +1.63%

Leading Sectors
Oil Service +1.98%
REITs +1.08%
Gaming +.63%

Lagging Sectors
Semis -2.05%
Gold & Silver -2.24%
Airlines -2.70%

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
- None of note

Afternoon/Evening Headlines
- Former Defense Secretary Casper Weinberger, who oversaw the US military buildup under President Reagan that helped win the Cold War with the Soviet Union, died at the age of 88.
- Israel’s Acting Prime Minister Ehud Olmert and his Kadima Party won today’s election, tapping voters’ desire to abandon talks with the Palestinians and fix the country’s borders unilaterally, exit polls showed.
- General Motors(NYSE:GM) said it will restate several years of financial statements for its home-mortgage unit.
- TD Ameritrade Holding(NASDAQ:AMTD) said earnings for the fiscal second quarter will exceed its earlier estimate of as much as .28/share due to a surge in trading volume.
- The IRS audited 11,715 US millionaires in 2005, providing a rare glimpse of its efforts to ensure wealthy taxpayers comply with tax laws.
- Shares of companies based in developing countries are rising for a seventh quarter, extending the longest string of advances since the 1980s. The p/e ratio of so-called emerging market stocks is the highest since 1999, relative to developed countries.
- US Treasuries declined, driving the 10-year yield up the most in two months, after the Fed raised interest rates for the 15th straight time and signaled additional increases are likely.

- The Federal Reserve may boost its benchmark interest rate to 5% and stop there, former Dallas Federal Reserve Bank President Robert McTeer said.

BOTTOM LINE: The tone of the market was negative today as the advance/decline line finished lower, most sectors fell and volume was above average. Measures of investor anxiety were mostly higher into the close. Overall, today's market performance was bearish. The bond market's reaction to the Fed hike and commentary is disappointing considering investor expectations. As well, oil may bounce further in the short-run on the new ETF scheduled for this Monday. Given how good this quarter has been to many, I expect to see more profit-taking into quarter-end.