Monday's US Market Wrap

by: Between the Hedges

From Between the Hedges:

Stocks Finish Lower on Worries Over Consumer Spending

S&P 500 1,285.33 -.29%
DJIA 11,073.78 -.57%
NASDAQ 2,311.16 -.64%
Russell 2000 749.47 .22%
Wilshire 5000 12,999.46 -.25%
S&P Barra Growth 602.35 -.42%
S&P Barra Value 680.20 -.16%
Morgan Stanley Consumer 595.90 -.46%
Morgan Stanley Cyclical 828.28 -.05%
Morgan Stanley Technology 546.49 -.68%
Transports 4,586.29 -1.28%
Utilities 382.84 +.09%
Put/Call .78 -7.14%
NYSE Arms 1.03 +46.57%
Volatility(VIX) 12.58 +1.62%
ISE Sentiment 188.00 +79.05%
US Dollar 88.65 -1.05%
CRB 348.46 +1.79%

Futures Spot Prices
Crude Oil 70.34 -.09%
Unleaded Gasoline 216.52 -.21%
Natural Gas 7.59 +.17%
Heating Oil 202.30 unch.
Gold 617.50 -.21%
Base Metals 197.30 +.42%
Copper 289.60 +.03%
10-year US Treasury Yield 5.0% -.74%

Leading Sectors
Gold & Silver +4.29%
Steel +2.19%
Energy +1.78%

Lagging Sectors
HMOs -1.49%
Computer Hardware -1.69%
Airlines -5.56%

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
Morgan Stanley:
- Rated VCG Overweight, target $14.
- Downgraded IWA to Underweight, target $16.

Afternoon/Evening Headlines
- Eli Lilly’s(NYSE:LLY) Evista osteoporosis drug safely cuts in half a women’s risk of getting invasive breast cancer, a government study found.
- Merrill Lynch’s(MER) strategy of putting less money at risk in trading and acquisitions than its Wall Street rivals is making it one of the cheapest stocks in the US securities industry.
- Chinese and Russian diplomats said they would block imposition of the first UN penalties on Sudanese military and militia leaders accused of committing crimes against humanity in the nation’s Darfur region.
- Symantec Corp.(NASDAQ:SYMC) said the IRS is seeking at least $1 billion in additional taxes from the company.
- Two Duke University lacrosse players were indicted in the alleged rape of a women in a case that’s raised racial tensions between the predominantly white school and the largely black city where it’s located.

Washington Times:
- Three out of four lawmakers on the US Senate Finance and House Ways and Means committees, which write the nation’s tax laws, use professional tax preparers to complete their annual returns.

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 about average. Measures of investor anxiety were mixed into the close. Overall, today's market performance was bearish. The fact that the bond market acknowledged weaker data today is a positive. Given the news, my measures of intraday investor complacency are relatively muted, which is a negative short-term. In my opinion, commodities have entered a "blow off" phase as they ignore all bearish data and rise sharply on any bullish data. I expect market bears to overreach once again over the coming weeks, providing another excellent entry point on the long side.