Thursday's US Market Wrap

by: Between the Hedges

From Between the Hedges:

Stocks Finish at Session Highs on Positive Economic Outlook 

S&P 500 1,289.38 +.73%
DJIA 11,120.68 +.56%
NASDAQ 2,294.63 +.80%
Russell 2000 731.92 +.94%
S&P Barra Growth 611.09 +.66%
S&P Barra Value 674.59 +.81%
Morgan Stanley Consumer 604.26 +.53%
Morgan Stanley Cyclical 800.67 +.45%
Morgan Stanley Technology 541.44 +1.34%
Transports 4,414.61 -.62%
Utilities 406.36 +.73%
Put/Call .71 +1.43%
NYSE Arms .60 -41.30%
Volatility(VIX) 11.48 -6.74%
ISE Sentiment 200.00 +58.73%
US Dollar 90.63 -.10%
CRB 322.60 +.58%

Futures Spot Prices
Crude Oil 58.88 +.72%
Unleaded Gasoline 143.45 +1.56%
Natural Gas 7.24 +1.49%
Heating Oil 163.90 +.84%
Gold 550.10 +.24%
Base Metals 161.13 -.26%
Copper 221.90 -.16%
10-year US Treasury Yield 4.58% -.30%

Leading Sectors
Steel +2.79%
Oil Service +2.57%
Computer Hardware +2.53%

Lagging Sectors
Gaming -.10%
Airlines -1.01%
HMOs -1.62%

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:
- Reiterated Outperform on (BHI).
- Reiterated Underperform on (NYSE:CNA).

Afternoon/Evening Headlines
- Legislation to renew the USA Patriot Act cleared a key procedural hurdle in the Senate today, easing way for passage by Congress.
- MasterCard Inc. delayed its IPO because CEO Selander has prostate cancer.
- Intuit(NASDAQ:INTU) said second-quarter profit jumped 26%, aided by the sale of a unit and early revenue from TurboTax software.
- Dell Inc.(DELL) said fourth-quarter profit rose 52% as PC shipments reached a record during the holidays.

Washington Post:
- Mirant Corp.(MIR) is seeking approval to build a barge terminal on the Potomac River to supply a coal-fueled power plant in Maryland.

Wall Street Journal:
- Billionaire investor Carl Icahn abandoned his plan to take control of Time Warner(NYSE:TWX).

BOTTOM LINE: The tone of the market was positive today as the advance/decline line finished higher, almost every sector gained and volume was above average. Measures of investor anxiety were mostly lower into the close. The AAII % Bulls fell to 40.18% this week from 40.19% the prior week. This reading is still below average levels. The AAII % Bears rose to 35.71% this week from 34.58% the prior week. This reading is still above average levels. I expect bullish sentiment to fall again next week. Considering the DJIA is above 11,000, the Russell 2000 is almost 9% higher for the year and a number of sectors are near all-time highs, these numbers bode very well for future gains in U.S. stocks.