Monday's US Market Wrap

by: Between the Hedges

From Between the Hedges:

Stocks Finish Mixed, Closing Near Session Lows

S&P 500 1,297.81 +.23%
DJIA 11,144.94 +.32%
NASDAQ 2,336.74 -.13%
Russell 2000 759.22 -.77%
Wilshire 5000 13,131.27 +.07%
S&P Barra Growth 610.55 +.10%
S&P Barra Value 684.14 +.36%
Morgan Stanley Consumer 609.95 +.35%
Morgan Stanley Cyclical 821.11 +.89%
Morgan Stanley Technology 550.25 +.39%
Transports 4,622.04 +1.18%
Utilities 390.37 +.35%
Put/Call .67 -16.25%
NYSE Arms .63 -61.77%
Volatility(VIX) 11.57 +1.58%
ISE Sentiment 141.00 +17.50%
US Dollar 89.64 -.10%
CRB 335.61 +.73%

Futures Spot Prices
Crude Oil 66.37 -.55%
Unleaded Gasoline 185.60 -.39%
Natural Gas 7.17 -1.02%
Heating Oil 185.65 -.31%
Gold 592.80 -.25%
Base Metals 182.91 +3.21%
Copper 254.55 -.08%
10-year US Treasury Yield 4.86% +.25%

Leading Sectors
Steel +1.17%
Semis +1.11%
Wireless +.91%

Lagging Sectors
Retail -1.29%
Biotech -1.44%
REITs -1.96%

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
Banc of America:
- Rated (ISE) Buy, target $50.

- Rated (NASDAQ:FLEX), (JBIL) Outperform.

Afternoon/Evening Headlines
- BKF Capital Group plans to shut down its hedge funds that generated about 20% of its revenue last year because two senior managers quit over a disagreement about long-term compensation.
- Continental AG, which provides vehicle-stability systems to GM and Porshe AG, agreed to buy the car-electronics unit of Motorola(MOT) for $1 billion to become the world’s biggest provider of in-vehicle communications.
- Novartis AG increased its offer for the rest of Chiron Corp.(CHIR) to about $5.33 billion from about $5.1 billion to win backing from shareholders who opposed the deal because the price was too low.

- General Motors(NYSE:GM) is negotiating with lenders for an $8 billion to $9 billion loan.

- Clear Channel Communications(NYSE:CCU) signed an agreement with Google(NASDAQ:GOOG) to use Google’s software for Internet searches and advertising on radio Web sites.

Financial Times:
- McDonald’s Corp.(NYSE:MCD) will put photographs of customers on the side of its burger packaging as part of a marketing competition.

BOTTOM LINE: The tone of the market was negative today as the advance/decline line finished lower, sector performance was mixed and volume was above-average. Measures of investor anxiety were mostly lower into the close. Overall, today's market performance was mildly bearish. Oil is continuing its late afternoon reversal lower in electronic trading. I still believe that U.S. economic growth will slow back to average levels later this year, likely leading to a period of sustained underperformance for the cyclicals that have recently spiked higher. I expect more healthy consolidation near-term for the averages.