Tuesday's US Market Wrap

by: Between the Hedges

From Between the Hedges:

Stocks Finish Modestly Lower on Profit-taking and Higher Long-term Rates

S&P 500 1,301.74 -.49%
DJIA 11,283.25 -.47%
NASDAQ 2,330.30 -.13%
Russell 2000 764.82 -.17%
Wilshire 5000 13,180.07 -.44%
S&P Barra Growth 608.46 -.39%
S&P Barra Value 690.67 -.58%
Morgan Stanley Consumer 602.36 -.25%
Morgan Stanley Cyclical 845.10 -.60%
Morgan Stanley Technology 544.26 -.36%
Transports 4,707.38 -.49%
Utilities 396.81 -1.15%
Put/Call .95 +2.15%
NYSE Arms .95 -24.32%
Volatility(VIX) 11.75 unch.
ISE Sentiment 195.00 -2.99%
US Dollar 87.35 -.11%
CRB 352.93 +.10%

Futures Spot Prices
Crude Oil 72.78 -.14%
Unleaded Gasoline 212.80 -.05%
Natural Gas 7.27 +.21%
Heating Oil 205.81 +1.30%
Gold 634.70 +.08%
Base Metals 222.34 +4.31%
Copper 333.00 +.29%
10-year US Treasury Yield 5.07% +1.89%

Leading Sectors
Networking +1.63%
Disk Drives +1.38%
Airlines +1.11%

Lagging Sectors
HMOs -1.41%
Papers -1.54%
Steel -2.30%

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
Deutsche Bank:
- Downgraded (NASDAQ:CTRP) and (NASDAQ:SINA) to Hold.

Afternoon/Evening Headlines
- Amazon.com(NASDAQ:AMZN) said first-quarter profit fell 35% after increasing spending. The shares rose as much as 6.4% after the company raised its sales and profit forecast for the year.
- Corning Inc.(NYSE:GLW) said sales rose 20% as customers bought more LCD televisions.
- Felipe Calderon, the former energy minister for Mexican President Vicente Fox, took the lead in a presidential poll for the first time, surpassing former Mexico City Mayor Andres Lopez Obrador.

- An Israeli spy satellite was launched into orbit from Russia today. The satellite is capable of monitoring Iran’s nuclear program. Iran’s President said again yesterday that Israel should be destroyed.

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 heavy. Measures of investor anxiety were mostly higher into the close. Overall, today's market performance was only mildly bearish considering the rise in long-term rates and recent stock gains. The bears were again unable to capitalize on morning weakness. I will wait to see the bond market's reaction to tomorrow's new home sales and durable goods reports before further shifting market exposure.