Wednesday's US Market Wrap

by: Between the Hedges

From Between the Hedges:

Stocks Finish Higher on Energy Price Decline, Strong Economic Data and Surging Corporate Profits

Indices
S&P 500 1,305.41 +.28%
DJIA 11,354.49 +.63%
NASDAQ 2,333.63 +.14%
Russell 2000 765.23 +.05%
Wilshire 5000 13,205.88 +.20%
S&P Barra Growth 609.76 +.21%
S&P Barra Value 693.09 +.35%
Morgan Stanley Consumer 606.04 +.61%
Morgan Stanley Cyclical 853.14 +.95%
Morgan Stanley Technology 545.26 +.18%
Transports 4,700.68 -.14%
Utilities 392.39 -1.11%
Put/Call 1.08 +13.68%
NYSE Arms .91 -3.49%
Volatility(VIX) 11.76 +.09
ISE Sentiment 199.00 +2.05%
US Dollar 87.26 -.07%
CRB 352.57 -.10%

Futures Spot Prices
Crude Oil 71.64 -.40%
Unleaded Gasoline 211.60 -.82%
Natural Gas 7.22 -.63%
Heating Oil 202.29 -1.71%
Gold 639.00 +1.24%
Base Metals 224.14 +.81%
Copper 338.00 -.44%
10-year US Treasury Yield 5.10% +.71%

Leading Sectors
Gold & Silver +1.72%
Networking +1.49%
Disk Drives +1.20%

Lagging Sectors
HMOs -1.13%
Energy -1.50%
Gaming -1.83%

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
GuruFocus.com
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
Oppenheimer:
- Reiterated Buy on AAP.

Afternoon/Evening Headlines
Bloomberg:
- The US Senate voted to use $1.9 billion from an emergency spending measure to buy more patrol boats, aircraft and other equipment to secure the US borders.
- MediaNews Group, publisher of the Denver Post, agreed to buy four newspapers from McClatchy for $1 billion, including three in California.
- The US Senate is seeking tax returns from the 15 largest US oil and gas companies to ensure they are paying the full amount due on record profits.
- House Republican leaders plan to introduce measures next week to reduce energy costs.
- Chevron(NYSE:CVX) plans to boost natural-gas production in Colombia by as much as 50%.
- Crude oil prices fell $1.40 from session highs to $71.60/barrel as speculation over a summer gas shortage waned.

Reuters:
- Walt Disney(NYSE:DIS) will introduce new interactive advertising when it begins showing television programs from ABC’s prime-time lineup on the network’s Web site.

IDG News Service:
- Symantec(NASDAQ:SYMC) will announce on May 1 the reintroduction of a project aimed at curbing online identity theft attacks, called phishing.

Canadian Broadcasting Corp.:
- The US has agreed to return almost $4 billion of lumber duties under a preliminary agreement that would give Canada access to about 34% of the US softwood lumber market.

BOTTOM LINE: The tone of the market was neutral today as the advance/decline line finished about even, sector performance was mixed and volume was above average. Measures of investor anxiety were mixed into the close. Overall, today's market performance was only mildly bearish considering the rise in long-term rates and recent stock gains. The frenzy for cyclicals continued, however energy stocks came under pressure into the afternoon, finishing at session lows. A number of market-leading stocks finished lower on the day. However, given today's news, the fact that the major averages were mostly higher was a big positive. I am surprised by the bond market's muted reaction to such positive economic data.