3SOF

Dow Keeps Streak Alive.......

5/4/2007


Stocks in the U.S. edged to the upside Friday as a new round of deal talk, including a potential bid for Internet giant Yahoo! (YHOO:) , let traders look past a slightly soft employment report.

The Dow Jones Industrial Average was up 23.24 points, or 0.18%, to 13,264.62, giving the index its seventh record close in the last eight days. The Dow set an all-time intraday high of 13,283.31 earlier, buoyed by a 2.2% gain in component Hewlett-Packard (HPQ:) .

The S&P 500 added 3.23 points, or 0.21%, at 1505.62, and the Nasdaq tacked on 6.69 points, or 0.26%, at 2572.15.

The market ended yet another week solidly higher. While collecting four consecutive record finishes, the Dow gained 1.1% over the five sessions. The S&P 500 was higher by 0.7%, and the Nasdaq added 0.6%.

About 2.81 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by a 3-to-2 margin. Volume on the Nasdaq reached 2.29 billion shares, with winners outpacing losers 8 to 7.

Leading the news was a spate of merger speculation in the media and publishing space. Headlining the various chatter was a report that Microsoft (MSFT:) is preparing to go after Web search concern Yahoo! in what could be a blockbuster tie-up of tech titans.

According to the New York Post, Microsoft wants Yahoo! to enter formal discussions for what the report said could be a $50 billion transaction. Yahoo! surged nearly 10% to end at $30.98, while Microsoft dipped 41 cents, or 1.3%, to $30.56.

Elsewhere, the U.K.''s Reuters (RTRSY:) news service said it has been approached by a potential buyer it didn't name. The stock soared $15.84, or 26.9%, to end the day at $74.76.

Meanwhile, Britain's EMI climbed in London trading after it said it has received buyout offers. According to the Financial Times, JPMorgan's (JPM:) private-equity division is one of the potential acquirers.

Already this week, Dow Jones (DJ:) , the publisher of The Wall Street Journal, said it's being courted by Rupert Murdoch, the media mogul behind News Corp. (NWS:) .

The family that controls Dow Jones has been split on the possible transaction, and the company's board said it wouldn't take any action for the time being.

Separately, benign employment numbers from the Labor Department suggested the Federal Reserve could be less inclined to push through new rate hikes, but at the same sparked some concern about the state of the economy.

The jobs report, one of the most important pieces of data the government releases every month, showed that 88,000 workers were added to U.S. payrolls in April. Economists had expected 100,000 positions to have been created.

The jobless rate rose to 4.5% from 4.4%, as had been anticipated. Average hourly earnings, a key inflation metric, rose a less-than-expected 0.2%.

In what is becoming fairly normal, job growth for the prior two months was revised, except this time the changes were to the downside. The government now says 26,000 fewer employees were put to work in March and February than had been first thought.

While jobs growth slowed, the small rise in wage growth could provide inflation comfort to the Fed. The central bank will meet for third time this year on May 9, but no change in the target fed funds rate is expected.

Peter Morici, a professor at the University of Maryland School of Business and former chief economist at the U.S. International Trade Commission, said that the somewhat slower employment growth in April is consistent with the recent pickup in productivity and a modestly expanding economy.

"Moderate growth and rising labor productivity should keep wage inflation in check," he said. "Surging corporate profits, moderate growth and steady interest rates at home, and more robust foreign demand for U.S. equities should power up U.S. stock prices."

Among subsector indices, the Amex Airline Index finished with a 1.7% gain, and the Philadelphia Semiconductor Sector Index climbed 1.1%. On the losing side, the Philadelphia Housing Sector Index dipped 0.2%, and the Philadelphia Oil Service Sector Index ended with a 0.1% loss.

Bond prices moved higher after the data. The 10-year note was up 10/32 in price, yielding 4.64%, and the 30-year bond was advancing 17/32 to yield 4.80%.

As for commodities, June crude futures dropped $1.26 to $61.93 a barrel, a decline of 6.8% for the week. Gold was higher by $5.30 to finish at $689.70 an ounce, and silver tacked on 2 cents to end the week at $13.53 an ounce.

Overseas, stocks in Europe and Asia were on the rise. London's FTSE gained 1% to 6603, and Frankfurt's Xetra DAX was up 0.5% at 7517. The Paris Cac 40 added 0.4%. Hong Kong's Hang Seng climbed 0.8%, and South Korea's Kospi rose 0.5%.

Deal Talk Juices Dow.......

5/7/2007


Blue chips climbed again Monday as buyers cheered the continuation of Wall Street's merger frenzy to start the new week.

"The Dow Jones Industrial Average had its fifth straight all-time closing high" , rising 48.35 points, or 0.36%, to 13,312.97. By ending to the upside, the Dow tied an 80-year-old record with 24 gains in 27 sessions.

So far in 2007, the industrials have racked up 20 best-ever finishes, and they've added 6.5% for the year.

As for the other major indices, the S&P 500 closed up 3.86 points, or 0.26%, to 1509.48, while the Nasdaq Composite slipped late in the session and finished lower by 1.20 points, or 0.05%, to 2570.95. The tech-laden index was pressured by Amazon.com (AMZN:) and Activision (ATVI:) , which fell 3.8% and 5.2%, respectively.

About 2.42 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by a 6-to-5 margin. Volume on the Nasdaq reached 1.66 billion shares, but losers outpaced winners 8 to 7.

Among subsector indices, the Philadelphia Housing Sector Index and the Philadelphia Oil Service Sector Index both ended with a 0.4% loss, and the Philadelphia Semiconductor Sector Index eased 0.3%.

On the winning side, the Philadelphia Gold & Silver Sector Index added 0.9%, and the Philadelphia Utility Sector Index finished up 0.8%.

Providing a boost for the old economy was word that a blockbuster merger could be set to take place in the industrial sector, where Pittsburgh-based aluminum giant Alcoa (AA:) said it was launching a bid to buy Canada's Alcan (AL:) for $27 billion. Alcoa finished higher by 8.3% at $38.63, and Alcan surged 34.5% to $82.11.

Alcan appears to be playing hard to get, but at any rate, the potential deal would be the latest in a host of takeouts and tie-ups this year, which is shaping up to be a mammoth one for M&A.

"We're awash with M&A activity, and that's clearly the focus," said Art Hogan, chief market analyst with Jefferies. "We have a positive bias because of that today, with little on the economic calendar to shift that focus."

However, Hogan said that focus could change on Wednesday, when the Federal Reserve will meet for third time this year. No change in the target fed funds rate is expected, but the language contained in the accompanying statement will be subject to close scrutiny.

"The key is going to be what they have to say about both the economy and inflation," said Paul Nolte, director of investments with Hinsdale Associates. "Given the market's belief that the economy is doing just fine and inflation is coming down, the commentary from the Fed could key a large market move in either direction."

In other M&A news, shares of Armor Holdings (AH:) ended with a 5.4% gain after the U.K.''s BAE Systems said it would acquire the security and defense company for $4.1 billion, or $88 a share. The price tag represents a 7.1% premium from Armor's Friday closing price.

The latest round of deals comes following a big week for merger talk. Last week, News Corp. (NWS:) bid for Dow Jones (DJ:) , Reuters (RTRSY:) and Thomson (TOC:) were said to be exploring a merger, and rumors indicated that Microsoft (MSFT:) might pursue Yahoo! (YHOO:) .

While the earnings and economic calendars were light Monday, several firms made changes on stock ratings. On the upside, Bear Stearns raised its rating for Darden Restaurants (DRI:) to outperform from peer perform. Darden rose $2.29, or 5.3%, to $45.51.

Among downgrades, Prudential cut its rating for chipmaker Linear Technology (LLTC:) to underweight from neutral. The firm also lowered its stock price target to $33 a share from $37. Linear ended down 63 cents, or 1.6%, to $38.11.

Away from stocks, government bond prices crept higher. The 10-year Treasury was up 1/32 in price to yield 4.64%, and the 30-year bond added 7/32 to yield 4.79%.

In commodities, the energy complex gave up ground. Crude fell 46 cents to end the day at $61.47 a barrel, and gasoline slipped 3 cents to $2.18 a gallon. Gold edged higher by 70 cents to $690.40.

Overseas, markets in Asia rose, including a 1.6% gain for Tokyo's Nikkei and a 0.3% rise for Hong Kong's Hang Seng. Europe was little changed, with the Paris Cac 40 flat and Frankfurt's Xetra DAX tacking on 0.1%.

Bulls Hit Back Hard.......

5/11/2007


Stocks bounced back from their worst selloff in two months and returned to their rallying ways Friday, recovering a big chunk of the territory they surrendered during the prior session.

The Dow Jones Industrial Average rose 111.09 points, or 0.84%, to 13,326.22. Twenty-eight of the Dow's 30 components were in the black, led by 2.3% advance in ExxonMobil (XOM:) .

The S&P 500 was better by 14.38 points, or 0.96%, at 1505.85, and the Nasdaq added 28.48 points, or 1.12%, at 2562.22.

For the industrials, it was another positive week. This time, they gained 0.5% over the five sessions. However, the S&P 500 was higher by only a fraction of a point, while the Nasdaq slipped 0.4% for the week.

About 2.73 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by a 13-to-4 margin. Volume on the Nasdaq reached 1.78 billion shares, and winners outpaced losers 3 to 1.

Helping the market was a report from the Labor Department, whose producer price index for April showed that inflation was being contained at the wholesale level. The headline index rose 0.7%, which was slightly above projections, but the core index, excluding food and energy, was unchanged.

Economists had expected core PPI to rise 0.2%. The core rate advanced 1.5% year over year, down from March's 1.7% rise and within the Federal Reserves comfort range of 1% to 2%.

"Overall, this is a decent number," said Jay Suskind, head of institutional equity trading with Ryan Beck & Co. "This is a little softer on the inflation front and, based on the Fed's statement on inflationary pressure earlier this week, this helps to abate fears."

On Monday, the consumer price index, viewed as the more important of the two measures, will be out.

However, all wasn't rosy on the economic front. The Commerce Department said that retail sales unexpectedly fell 0.2% last month, compared with forecasts of a 0.4% increase. Excluding autos, retail sales were flat in April, also well below forecasts.

"One bad month does not make a trend, especially when that month is April, when Easter seasonals can distort the real picture," said Ian Shepherdson, chief economist with High Frequency Economics. "But weakness in core sales is consistent with the surge in gas prices and the accompanying drop in consumers'' confidence."

The previous day, U.S. stock measures fell amid concerns about the pace of economic growth and a poor showing from the nation's chain-store operators.

The Dow dropped 147.74 points, or 1.11%, to 13,215.13. Only four of its 30 members escaped the sellers. Partly to blame for the decline was a report showing a much bigger trade gap for April than analysts had been expecting, which fueled worries about the strength of the economy.

For others, the damage was even worse. The S&P 500 plunged 21.11 points, or 1.40%, to 1491.47, and the Nasdaq tanked by 42.60 points, or 1.65%, to 2533.74.

Treasuries lost early momentum and settled lower late. The 10-year note was down 7/32 in price, yielding 4.67%, and the 30-year bond was off 13/32, yielding 4.85%.

Many subsector indices finished with gains. The Amex Gold Bugs Index added 1.8%, the Philadelphia Semiconductor Sector Index gained 1.2%, the Philadelphia Housing Sector Index tacked on 0.7%, and the Philadelphia/KBW Bank Sector Index finished up 0.6%.

The S&P Retail Index was one of few decliners, finishing with a loss of 0.2%.

Corporate news was on the light side. One of the names making headlines was Alcatel-Lucent (ALU:) , who said its first-quarter revenue fell 8% year over year. However, second-quarter sales should climb 10% sequentially, the company said. Alcatel rose 57 cents, or 4.4%, to end the day at $13.57.

Meanwhile, Amgen (AMGN:) was hit with several downgrades, including moves by Citi and JPMorgan, a day after a group of advisers to the Food and Drug Administration said its anemia drugs needed more clinical tests and restrictions on their use.

The biotech company's stock fell hard after the recommendation, but Wachovia said the reaction was overly harsh. Amgen, which dropped 9.1% in the previous session, lost another 1.8% to $56.30.

Meanwhile, UBS upgraded chipmaker Applied Materials (AMAT:) to buy from neutral, while Citigroup cut its rating for Wendy's (WEN:) to hold from buy.

Applied Materials ended higher by 59 cents, or 3.1%, to $19.77. Wendy's added 79 cents, or 2%, to $40.58.

Among commodities, crude futures were better by 56 cents to close at $62.37 a barrel, and gold added $5.30 to $672.30 an ounce.

Overseas, stocks were weaker in Asia, while Europe saw gains. Tokyo's Nikkei lost 1% to 17,553, and Hong Kong's Hang Seng gave back 1.3% to 20,468. London's FTSE was 0.6% higher, and Frankfurt's DAX was up 0.9%.



Below are the 6 Month, 1 Year, 2 Year and 3 Year Charts

Stocks Wobble to Mixed Close.......

5/14/2007


Big buyout news in the automotive sector helped propel the Dow Jones Industrial Average to gains Monday, but tech stocks lost ground in a shaky session on Wall Street.

The Dow clawed back from a midsession selloff to rise 20.56 points, or 0.15%, to 13,346.78. The blue-chip average fell by as many as 29 points before rebounding.

The S&P 500 slipped 2.70 points, or 0.18%, to 1,503.15. The Nasdaq Composite shed 15.78 points, or 0.62%, to 2546.44, pressured by a 2.5% decline in Yahoo! (YHOO:) .

"The markets look like they're running out of gas, at least on a short-term basis," said Michael Sheldon, chief market strategist with Spencer Clarke LLC. "Technology stocks never really saw too much buying, and it appears that some profit-taking has started to build up."

Phillip Roth, chief technical market analyst with Miller Tabak, said it was encouraging that the market didn't tumble further after the Dow touched its low of the day.

"The early weakness was not followed by any accelerations, so we didn't really see a big price loss," he said. "The relatively poor action in small stocks continues. The market is hanging on, but there's deterioration. We're trying to make progress until we get a much weaker message."

Once again, a new week started with a big private-equity deal. In the latest one, Germany's DaimlerChrysler (DCX:) agreed to sell an 80% stake in its Chrysler Group unit to private-equity firm Cerberus Capital Management.

The Chrysler Group buyout, worth $7.4 billion, unravels the 1998 mega-merger of Daimler-Benz and Chrysler, the No. 3 U.S. automaker. Shares of DaimlerChrysler gained 2.6% and finished at $84.12, while Ford (F:) added 4.1% and General Motors (GM:NYSE) jumped 3.9%.

Elsewhere in Germany, Merck KGaA's generic-drug business will be acquired by Mylan Laboratories (MYL:) for 4.9 billion euros ($6.63 billion). Mylan beat out Teva Pharmaceutical (TEVA:) in the deal. Mylan tumbled 12.1% to $19.70, while Teva tacked on 0.1% at $39.98.

In the health care sector, shares of Viasys (VAS:) surged 36.9% to $43.18 after Cardinal Health (CAH:) said it will purchase the company in a deal worth $1.5 billion. The per-share price of $42.75 values Viasys at a 35% premium over Friday's closing price.

About 2.62 billion shares changed hands on the New York Stock Exchange, with decliners beating advancers by a 2-to-1 margin. Volume on the Nasdaq reached 1.96 billion shares, as winners outpaced losers 2 to 1.

Many subsector indices finished with losses. The Amex Gold Bugs Index slumped 2%, the Philadelphia/KBW Bank Sector Index finished down 0.6%, and the Philadelphia Semiconductor Sector Index fell 0.1%.

The Amex Oil Index was one of few advancers, finishing with a gain of 0.4%.

While U.S. indices finished mixed last week, Friday's session saw a bounce-back from the worst decline in two months. The Dow Jones Industrial Average closed Friday up 111.09 points, or 0.84%, to 13,326.22. The S&P 500 was better by 14.38 points, or 0.96%, at 1505.85, and the Nasdaq added 28.48 points, or 1.12%, at 2562.22.

"Everyone is combing their favorite screens to ferret out the next possible takeover candidate," said Paul Nolte, director of investments with Hinsdale Associates. "The continued increase in stocks is flying in the face of a decidedly weakening economy. The flip side to the economic numbers has been the huge amount of merger news."

The earnings and economic calendars were bare Monday, so traders were looking ahead to Tuesday's government's report on consumer price inflation for April. Economists expect that the headline number will rise 0.5%, while the core number, which excludes food and energy, will increase 0.6%.

The CPI data follow the latest read on producer prices. On Friday, the Labor Department said the headline index rose 0.7%, which was slightly above projections, but the core index was unchanged. Economists had expected core PPI to rise 0.2%.

"This should be the start of the summer doldrums," said Marc Pado, U.S. market strategist with Cantor-Fitzgerald. "It usually takes the entire month of May to see the trend established, but the market appears poised to start a small top and then the much-anticipated pullback."

Government bond prices declined. The 10-year Treasury was down 4/32 in price to yield 4.69%, and the 30-year bond was off 5/32, yielding 4.86%.

Among commodities, the energy complex gained ground. Crude rose 9 cents to $62.46 a barrel, and natural gas added 5 cents to $7.93 per million British thermal units. Gold lost $2.20 at $670.10.

Overseas, Germany's Xetra DAX slid 0.3%, despite the Daimler headlines. Meanwhile, London's FTSE 100 eased 0.2% and the Paris Cac 40 dipped 0.4%. Overnight, Tokyo's Nikkei climbed 0.7%, and Hong Kong's Hang Seng jumped 2.5%.

On Tuesday, earnings reports will be back in the spotlight. Among companies expected to report are Wal-Mart (WMT:) , Home Depot (WMT:) , and Applied Materials (AMAT:) .

M&A Fires Up Stocks.......

5/18/2007


Stocks climbed anew Friday and led to another record for the Dow Jones Industrial Average as the latest dealmaking got Wall Street's rally back on track.

The Dow rose 79.81 points, or 0.59%, to 13,556.53, putting it at yet another all-time closing high. The S&P 500 also made an attempt at a new benchmark, jumping 10 points, or 0.66%, to 1522.75, leaving it just short of its best close of 1527.46 set back in 2000.

Meanwhile, the Nasdaq was better by 19.07 points, or 0.75%, at 2558.45.

"Traders want to short this rally but aren't getting a break," said Marc Pado, U.S. market strategist with Cantor Fitzgerald. "Technically, we are overbought. The momentum indicators are clearly diverging, heading down as price heads higher. Sooner or later, the bulls will have to come up for air, but the odds favor that it won't be for long."

About 2.89 billion shares changed hands on the New York Stock Exchange, and volume on the Nasdaq reached 2.02 billion shares. Winners outpaced losers 3 to 2.

While the major averages finish the week strong, it has been anything but an easy ride. Lopsided trading has dominated. The Dow added 230 points, or 1.6%. The S&P 500 rose 1.1% over the five sessions. The Nasdaq, however, lagged behind and ended the week slightly lower.

Merger and acquisition news supported the blue-chip averages, while semiconductor names have combined to sink the tech-heavy Nasdaq.

Deals were struck for DaimlerChrysler's (DCX:) Chrysler Group, Reuters (RTRSY:) , and Alliance Data Systems (ADS:) , among others.

On the other hand, poor earnings from Applied Materials (AMAT:) sank the Philadelphia Semiconductor Sector Index, which dropped 2.6% in total.

The last day of the week was no different on the M&A front. Leading the corporate news was word that General Electric (GE:) could be close to selling its plastics division for roughly $11 billion to Saudi Basic Industries. The report appeared in The Wall Street Journal, and it lifted shares of GE by 43 cents, or 1.2%, to $36.96.

Elsewhere, aQuantive (AQNT:) soared 77.8% to $63.79 after Microsoft (MSFT:) said it will acquire the Internet marketer for $6 billion in cash. The deal values shares of aQuantive at $66.50, an 83% premium over its close on Thursday.

Another key story came from overseas, where the government of China said it will modestly expand the trading band for the yuan against the dollar to half a percent above and below the so-called central parity rate. The current band allows for 0.3% fluctuations.

Critics of China's trade policy have long argued that the nation's officials intentionally keep their currency undervalued relative to the greenback, giving their export industries an unfair advantage over American companies. Lately, the dollar was lower against the yen and higher against the euro.

Few earnings reports were on the calendar, but British Airways (BAIRY:) said earlier that it had a loss in the fourth quarter, reversing a profit a year earlier.

On the research front, Citigroup upgraded Verizon (VZ:) to buy from sell and took Priceline.com (PCLN:) to buy from hold. The firm also downgraded Juniper Networks (JNPR:) to hold from buy.

Separately, JP Morgan lifted its rating on NYSE Euronext (NYX:) to neutral from underweight. The stock ended higher by 44 cents, or 0.5%, at $82.44.

Two European drugmakers received good news from the Food and Drug Administration, as the agency granted extended approvals for Lovenox from Sanofi-Aventis (SNY:) and Seroquel from AstraZeneca (AZN:) .

The lone release on the economic calendar was the University of Michigan's preliminary reading on consumer sentiment in May, which unexpectedly rose to 88.7 from 87.1 last month. Economists had anticipated the index would decline to 86.2.

As for commodities, energy prices ended up following a volatile session, with oil tacking on 8 cents to $64.94 a barrel. Elsewhere, Gold rose $4.80 to $662 an ounce, and silver gained 12 cents to $13 an ounce.

Shares in China ticked down in the wake of the decision on the yuan, with the CSI 300 Index losing 0.05% to 3777. Tokyo's Nikkei surrendered 0.6% to 17,400, and Hong Kong's Hang Seng shed 0.4% at 20,905.

The FTSE 100 in London increased 0.9% at 6640, and Frankfurt's Xetra DAX advanced 1.4% to 7607.

Crude Surge Hinders Rally.......

5/21/2007


The S&P 500 traded through its all-time closing high Monday, but a sharp increase in oil prices kept the big-cap index from holding on and making history.

At the end of trading, the S&P was up 2.35 points, or 0.15%, to 1525.10. Earlier, it pushed above its best-ever finish of 1527.46, set in March 2000.

The Dow Jones Industrial Average also moved deeper in to record territory, rising by as many as 30 points, before pulling back. The Dow ultimately lost 13.65 points, or 0.1%, at 13,542.88.

Meanwhile, the Nasdaq was the best performer of the bunch, better by 20.34 points, or 0.8%, at 2578.79.

For a time, the bulls appeared to be taking control of the session, but a steady advance in crude cut the rally short. June dated oil futures ended with a gain of $1.33 at $66.27 a barrel.

"The market was strong early, following last week's strength, but the shoot up in oil prices took the edge off," said Phillip Roth, chief technical market analyst with Miller Tabak. "I view this as an uptrend that is intact, but a lot of stocks are struggling. We'll continue to be choppy, and we probably will have a week without any progress."

About 3.31 billion shares changed hands on the New York Stock Exchange, where advancers beat decliners by a 5-to-3 margin. Volume on the Nasdaq reached 1.93 billion shares, as winners outpaced losers 2 to 1.

On the corporate side, the newest round of takeovers was making headlines, including a roughly $25 billion deal for Alltel (AT:) . TPG, formerly Texas Pacific Group, will team up with the private-equity arm of Goldman Sachs (GS:) to acquire the wireless carrier, and Alltel rose $4.39, or 6.7%, to finish the day at $69.60.

Elsewhere, General Electric (GE:) confirmed that it will sell its plastics division for $11.6 billion to Saudi Basic Industries. GE, which said it expects the deal to close during the third quarter, was higher by 14 cents, or 0.4%, to $37.10.

Another transaction will see Hologic (HOLX:) purchase Cytyc (CYTC:) in a $6.2 billion combination that will unite two sellers of health care products for women. Cytyc surged $7.95, to 22.7%, to close at $43.

Lastly, Olin (OLN:) agreed to acquire fellow chlorine and caustic soda maker Pioneer (PONR:) for $35 a share, or $413 million. Shares of Pioneer jumped $4.81, or 16.4%, to $34.19.

"While just a bit fanciful, the markets are not interested in stopping or even slowing down for economic reports that conflict with the view that all is well in the world of investing," said Paul Nolte, director of investments with Hinsdale Associates. "While the current euphoria over stock investing will likely last for a while longer, we are surprised at the few actual declines in the markets over the past two months."

A growing string of mergers and acquisitions, many of them led by private equity, has spurred an increase in the U.S. stock market in 2007. The Dow has collected more than 20 record highs.

On Friday, the Dow gained 79.81 points, or 0.59%, to 13,556.53, its loftiest close of all time, and the S&P advanced 10 points, or 0.66%, to 1522.75. Meanwhile, the Nasdaq rose 19.07 points, or 0.75%, at 2558.45.

"M&A and short-covering have kept this train chugging along, despite higher crude," said Marc Pado, U.S. market strategist with Cantor Fitzgerald. "The attention had been on the odds of a rate cut surrounding the last FOMC meeting. Since then, the economic news has looked stronger coming out of April, especially on the industrial side."

Several firms were altering stock ratings. Citigroup upgraded both Comcast (CMCSA:) and Time Warner Cable (TWC:) to buy from hold. Comcast was higher by a penny, or 0.1%, at $27.54. Time Warner Cable added 41 cents, or 1.1%, to $38.31.

Among downgrades, Bear Stearns cut its rating for Clear Channel (CCU:) to peer perform from outperform. The stock was off 16 cents, or 0.4%, to end at $38.07.

Away from equities, government bond prices were slightly higher in the absence of any economic releases. The 10-year Treasury was up 3/32 in price to yield 4.79%.

Precious metals dealt with a volatile session. Gold declined early but finished up $1.80 to $663.70 an ounce. Silver gained 13 cents to $13.13 an ounce.

Stocks were mostly higher overseas, where Tokyo's Nikkei climbed 0.9% and Hong Kong's Hang Seng edged up 0.1%. Frankfurt's DAX was better by 0.2%, while London's FTSE slipped 0.1%.

S&P Record Proves Elusive.......


5/22/2007


The S&P 500 made another push past its all-time closing high Tuesday, but once again the index wasn't able to hang on through the end of trading.

When the final bell rang, the S&P had surrendered 0.98 point, or 0.06%, to 1524.12, leaving it just shy of its best finish at 1527.46 set on March 24, 2000.

Much like the previous session, the Dow Jones Industrial Average see-sawed between positive and negative territory, and ultimately lost 2.93 points, or 0.02%, at 13,539.95. The Nasdaq drew buying interest and was higher by 9.23 points, or 0.36%, at 2588.02.

On Monday, a spike in oil prices got in the way of the S&P's attempt to close above the record. This time, crude dropped $1.30 to settle at $64.97 a barrel, but it wasn't enough to keep blue chips afloat.

"There's little in the way of economic data impacting the markets," said Michael Sheldon, chief market strategist with Spencer Clarke LLC. "Investors have been tentative in terms of buying, considering bond yields and energy prices have remained higher."

Sheldon added that the S&P 500 should continue to flirt with all-time highs for the immediate term, but that activity will likely trail off and profit-taking could set in as the Memorial Day holiday weekend approaches.

About 2.72 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by a 6-to-5 margin. Volume on the Nasdaq reached 1.96 billion shares, and winners outpaced losers 5 to 3.

As for major sector trackers, the Amex Gold Bugs Index fell 1.8%, the Amex Oil Index slumped 0.6%, and the S&P Retail Index slid 0.5%. The Philadelphia Housing Sector Index jumped 1.9%, and the Amex Airline Index rose 2.6%.

Corporate news was on the light side, but several retailers were out with their quarterly results. Among them, BJ's Wholesale (BJ:) was in line with estimates, and AutoZone's (AZO:) profits were a bit better than expected.

Staples (SPLS:) had earnings that met the consensus forecast, though revenue was a little on the light side. The stock was off 62 cents, or 2.4%, at $25.05.

Computer Sciences (CSC:) said it would delay its earnings report to finalize its accounting methods. However, it offered preliminary results that essentially matched analysts'' targets.

That announcement came just hours after the company named President and Chief Operating Officer Michael Laphen to the position of chief executive, effective immediately. Laphen succeeds Van Honeycutt, who will remain chairman through the end of July. Computer Sciences added 68 cents, or 1.2%, to $57.74.

Elsewhere, networking giant Cisco (CSCO:) , known well for niche acquisitions, agreed to buy BroadWare Technologies, a privately held maker of video surveillance software. Cisco ended the day lower by 3 cents, or 0.1%, to $26.37.

Several firms were altering stock ratings. Citigroup upgraded Elan (ELN:) to hold from sell, a day after the drugmaker updated its plans for an Alzheimer's drug candidate. Elan was up 35 cents, or 1.9%, to $19.04.

Among downgrades, Matrix Research cut its rating for SanDisk (SNDK:) to hold from buy. The stock slid 73 cents, or 1.7%, at $43.54.

Away from equities, government bond prices were lower in the absence of any economic releases. The 10-year Treasury was down 10/32 in price to yield 4.83%, and the 30-year bond was falling 21/32, yielding 4.98%.

Overseas, stocks were mixed. Tokyo's Nikkei rose 0.7%, but Hong Kong's Hang Seng eased 0.4%. London's FTSE slipped 0.5%, and Frankfurt's DAX advanced 0.5%.

Retail earnings will be in focus again on Wednesday, with reports due from Target (TGT:) , Limited (LTD:) and Abercrombie & Fitch (ANF:) , among others.

Stocks Fail to Hold Gains.......


5/23/2007


Blue-chip stock measures had their sights set on records for much of the session Wednesday, but a sudden southward detour late in the afternoon derailed the rally.

When the final bell rang, the Dow Jones Industrial Average had a loss of 14.30 points, or 0.11%, at 13,525.65. The Nasdaq surrendered 10.97 points, or 0.42%, to 2577.05, and the S&P 500 slipped 1.84 points, or 0.12%, to 1522.28.

Earlier, the Dow touched an intraday record high of 13,609.76, and the S&P reached 1532.43. The Nasdaq went to just under 2601.

Breadth weakened from the previous session while volume ramped up. About 2.91 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by a 6-to-5 margin. Volume on the Nasdaq reached 2.03 billion shares, and winners outpaced losers 8 to 7.

The market was enjoying fairly solid gains until right after 2 p.m., when the major U.S. averages tumbled. A warning from former Federal Reserve Chairman Alan Greenspan that Chinese equities could be gearing up for a sharp pullback appeared to be at least partly responsible for the slide.

Both during his time at the central bank and since he left the Fed early last year, Greenspan has shown considerable ability to drive down shares anytime he even hints that investors should exercise restraint, beginning with his famous caution against "irrational exuberance" in late 1996.

The lower close was a disappointment for the market watchers who wanted to see the broad S&P index settle at a new all-time high, especially considering that for a large part of trading it seemed to be a foregone conclusion.

Each day this week, the S&P has pushed above its best finish of 1527.46 set in March 2000, but it hasn't been able to stay there. On Tuesday, the measure slipped nearly 1 point to 1524.12.

As has been the case for several weeks, mergers and acquisitions propped up the market before it ultimately fell back. Shares of Alcan (AL:) rose 6% to end at $85.89 after published reports said the Canadian aluminum company has held merger talks with Australia's BHP (BHP:) .

Following the last close, Alcan said it was urging shareholders to reject the $27 billion hostile offer from Alcoa (AA:) and suggested it was seeking a different partner.

Among other deals in the news, Crescent Real Estate Equities (CEI:) reached an agreement to be bought by a unit of Morgan Stanley (MS:) in a $6.5 billion arrangement. A large chunk of the total value includes assumed debt. Shares of Crescent ended higher by 3.2% at $22.31.

Elsewhere, shoe peddler Payless ShoeSource (PSS:) said it will acquire Stride Rite (SRR:) , the shoemaker, for roughly $800 million, or $20.50 a share. Stride Rite soared nearly 31% to $20.21 after the takeover was announced.

Edgar Peters, chief investment officer with Pan Agora, said that M&A activity has been good for individual stocks, but will not benefit the entire market over the long term.

"This isn't the environment where you'd want to see the market rallying to new highs," said Peters . "There's a certain amount of resistance at this point, and there aren't too many reasons to believe that everything is wonderful. Most of what's going on now is being tied to M&A. That's a liquidity issue and it is not tied to fundamentals, which are poor."

Several retailers were reporting earnings, including Target (TGT:) . The chain retailer posted a first-quarter profit of $651 million, or 75 cents a share, up 18% from the previous year. Results beat the Thomson First Call average consensus of 71 cents a share, although revenue came in slightly below estimates. Target gained 56 cents, or 1%, to finish at $58.60.

Additionally, Wet Seal (WTSLA:) topped first-quarter estimates by a slim margin. However, it indicated that second-quarter profits could miss the consensus. Still, Wet Seal was higher by 35 cents, or 6.3%, to $5.93.

Dillard's (DDS:) posted a 30% decline in first-quarter earnings, and the stock ended down $2.60, or 6.6%, at $37.05.

As for commodities, energy prices were stronger in the wake of the Energy Department's weekly inventory report, which showed a rise of 2 million barrels in crude inventories. Gasoline stocks added 1.5 barrels, and distillate stocks rose by 500,000 barrels.

The new front-month July crude contract climbed 26 cents to $65.77 a barrel, and gasoline tacked on a fraction of a penny to $2.31 a gallon.

Metals prices were higher. Gold added $2.70 to close at $662.60 an ounce, and silver gained 12 cents at $13.10 an ounce.

Treasuries were falling on the long end. The 10-year note was down 9/32 in price, yielding 4.87%, its highest yield since January, and the 30-year lost 15/32 to yield 5.01%.

Europe's markets were on the rise. London's FTSE was up 0.2% at 6616, and Frankfurt's Xetra DAX was better by 1% at 7735. In Asia, Tokyo's Nikkei tacked on 0.1% at 17,705, but Hong Kong's Hang Seng slipped 0.2% to 20,799.

Top is not in.......

I hope. Pushed all the chips back in today. No cash.
I think we have a lot further to go. Realize that this is still the 3rd highest close ever!

From xfactor.com
"...the current market environment is in all out bullish
mode with money chasing yields without regards to valuations or
investment risk. This is very common as markets move into what
is known as the third phase of a bull market where the markets
in essence "melt up".

...all of this is happening as the economy slows (most
likely the recent report of GDP will be revised down to less than
1%) and consumers are finding it harder and harder to obtain
credit to support their lifestyle.

The point here is simply this; the market is disregarding all
negative implications of a highly liquid market and the demand
by hedge funds and institutions to place capital is going to
drive the market to higher levels. How high is anyone's
guess....but when it ends the correction will be significant and
unexpected."

We shall see...

Good trading to all...Make some $Bucks$ 

Rate Jitters Undo Rally.......


5/24/2007


Wall Street's brief morning rally was a distant memory by the close of trading Thursday, as worries about interest rates put an end to any celebrating over the strength of the economy.

The Dow Jones Industrial Average fell 84.52 points, or 0.62%, to 13,441.13, a swing of 183 points from its session high.

A gain of 1.9% in component Boeing (BA:) was outweighed by losses in Intel (INTC:) , IBM (IBM:) and Disney (DIS:) .

The Nasdaq plunged 39.13 points, or 1.52%, to 2537.92, and the S&P 500 was off 14.77 points, or 0.97%, at 1507.51.

Breadth weakened dramatically compared to the last session. About 3.14 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by a 5-to-1 margin. Volume on the Nasdaq reached 2.35 billion shares, and winners outpaced losers 3 to 1.

Contributing to the confusion was a Commerce Department report that new-home sales rose 16.2% last month to an annual rate of 981,000 units. Economists were looking for only an 860,000 pace.

The Philadelphia Housing Sector Index, which jumped more than 2% after the release, finished the day 0.3% lower. Among individual names, Pulte Homes (PHM:) rose 1.4%, Centex (CTX:) gained 1%, and KB Home (KBH:) was up 0.7%.

For a time, the numbers gave a boost to broader stock measures, but they also led to selling in bonds and a corresponding increase in yields. The report is something of a two-edged sword. While it suggests growth in the economy, it also potentially reduces the chance of the Federal Reserve rate cut that many traders want to see.

By late in the day, Treasuries had recovered. The 10-year note was up 2/32 in price to yield 4.84%, having touched a high of 4.90% earlier. The 30-year bond was ahead by 6/32, yielding 4.99%.

"The bond market took the wind out of equities, as the move today is telegraphing the signal that an interest rate cut is off the table," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "We need confirmation before we can really believe that a rate cut is no longer an option, though. It's still a question whether housing has bottomed."

Pavlik added that, if a report Friday shows existing home sales tick up and inventories come down, it will give further credence to the belief that an easing is increasingly unlikely.

Paul Mendelsohn, chief investment strategist with Windham Financial, said stocks might have been awaiting a reason to pull back.

"We're due for a little correction in the leader sectors, such as utilities, energy and materials," he said. "They're very overbought, and it's presenting a problem. Going into a three-day weekend, there's definitely some caution coming from that."

Among the worst declining subsectors of the market, the Amex Gold Bugs Index dropped 3.2%, the Philadelphia Utility Index lost 2.7%, the Amex Oil Index slumped 1.5%, and the Dow Jones Transportation Average slid 1.2%.

Thus far this week, stocks have tried to rally each day, only to lose momentum before the close. On Wednesday, as on the two days before, the market climbed before relinquishing its gains late.

The last session's shift appeared partly due to comments from former Fed Chairman Alan Greenspan, who warned that China's equities are overvalued and getting primed for a correction. Even though Greenspan hasn't been in charge at the Fed since January 2006, his views still carry tremendous weight, and this wasn't the first time he has prompted a selloff with cautionary remarks.

Corporate news was again on the slow side. Homebuilder Toll Brothers (TOL:) said its second-quarter earnings sank year over year, and Jabil Circuit (JBL:) affirmed its guidance, as did AnnTaylor (ANN:) .

Separately, General Motors (GM:) said it expects to unload its Allison transmission unit and indicated that its exposure to Delphi's restructuring will probably cost around $7 billion. GM was lower by 96 cents, or 3.1%, finishing at $30.47.

Aside from the housing numbers, traders were also reviewing other economic releases, the first of the week. The Commerce Department said that orders for durable goods increased 0.6% in April, compared with a revised rise of 5% in March. Economists had anticipated a 0.9% gain.

Excluding transportation, orders were up 1.5% in April, unchanged from the previous month.

"The headline number was depressed by declines in both auto and aircraft orders," said Ian Shepherdson, chief economist with High Frequency Economics. "Core orders were better, with core capital goods orders up for the second straight month."

However, Shepherdson warned that the rise in durable goods orders is not a recovery. "It is more a reversal of unsustainable weakness, probably seasonal or weather distortions, in prior months," he said.

Elsewhere, the Labor Department said initial jobless claims rose by 15,000 last week to 311,000, topping estimates of 305,000 claims. It was the first increase in more than a month. The less volatile four-week moving average fell by 3,500 to 302,750.

Commodities were mostly weaker. The front-month July contract dropped $1.59 to $64.18 a barrel, and natural gas was down 8 cents at $7.68 per million British thermal units. Gold lost $9.30 to close at $653.30 an ounce, and silver was off 18 cents at $12.92 an ounce.

Stocks were under pressure across much of Asia overnight, but the declines were fairly modest. China's CSI 300 Index lost 0.5% to 3920, and Tokyo's Nikkei slipped 0.05% to 17,697.

Sluggishness was also being seen in Europe, where London's FTSE and Paris'' Cac were fractionally lower. Frankfurt's DAX was higher by 0.3%.

On the way to 14000.......
Last time we hit the 13-day MA we started back up.
Doesn't look like sellers are banging down the exit doors.
The other indices look good.The Chinese don't give a s#*# what Alan thinks.

Stocks Grind Out Gains.......


5/29/2007


Stocks struggled to find solid footing at the start of a short trading week, but after an unsteady session Wall Street managed to finish with modest gains Tuesday.

The Dow Jones Industrial Average, for a time better by 57 points, ended up 14.06 points, or 0.1%, at 13,521.34. The S&P 500 rose 2.38 points, or 0.2%, to 1518.11, and the Nasdaq was higher by 14.87 points, or 0.6%, at 2572.06.

Any traders worried that the long holiday weekend might slow the torrid pace of merger-and-acquisition activity awoke to find those fears misplaced, as once again dealmaking was dominating the headlines.

The biggest potential combination had a group led by Royal Bank of Scotland saying it will pursue the acquisition of ABN Amro (ABN:) for more than $95 billion. The offer exceeds a competing bid from Barclays.

Elsewhere, Tishman Speyer Properties and Lehman Brothers (LEH:) are going after the real estate investment trust Archstone-Smith (ASN:) in a takeover worth more than $22 billion.

Meanwhile, a combination of two engineering firms has also been set, with URS (URS:) agreeing to acquire Washington Group (WNG:) for $2.6 billion. And Avaya (AV:) , whose market value is around $6.1 billion, is considering selling all or part of the company, reports indicate.

One of the biggest stock movers was Peru Copper (CUP:NYSE) , which slumped almost 20% after the company said a deal couldn't be reached with a potential buyer. The mining concern will continue to evaluate its alternatives.

Economic data were light, but one report was out that showed positive attitudes among consumers. The Conference Board said its consumer confidence index for May rose to 108 from 104 the prior month.

The consensus estimate called for a reading of 104.5.

Among the Day's ratings changes, Merrill Lynch cut three Internet names, downgrading eBay (EBAY:Nasdaq) , Yahoo! (YHOO:Nasdaq) and Expedia (EXPE:NYSE) to neutral from buy.

HSBC upgraded Merck (MRK:NYSE) to neutral from underweight and lifted its price target to $57.75 from $45.

Energy prices were on the decline. Crude was down $2.05 at $63.15 a barrel, and gasoline was off 11 cents at $2.29 a gallon. Precious metals rose, including a $2 advance for gold to $663.40 an ounce.

Yields were rising on government bonds. The 10-year was down 7/32 in price, yielding 4.89%, and the 30-year was weaker by 7/32, yielding 5.02%.

Overseas, stocks were mixed. Tokyo's Nikkei added 0.5% to 17,673, but Hong Kong's Hang Seng eased 0.3% to 20,470. London's FTSE and Frankfurt's DAX each tacked on 0.5%, while the Cac in Paris declined 0.3%.

S&P Gets Its Record.......


5/30/2007


Both the S&P 500 and the Dow Jones Industrial Average ended at all-time highs Wednesday, as the assumption that the Federal Reserves next rate move would be a cut propelled blue chips upward.

After falling as many as 64 points earlier, the Dow turned around and finished ahead by 111.74 points, or 0.83%, at 13,633.08, its 25th record of the year....

Only five of the Dow's 30 components finished with losses. Among the winners were Caterpillar (CAT:) , up 3.6%, and Alcoa (AA:) , higher by 2.2%.

The S&P 500 rose 12.12 points, or 0.8%, to 1530.23, finally topping the record of 1527.46 set in March 2000. The broad blue-chip index had flirted with the new high several times over the past week, but each time had failed to push through to a record close.

The Nasdaq, meanwhile, gained 20.53 points, or 0.8%, to 2592.59.

The major indices'' climb came after the 2 p.m. EDT release of the Federal Open Market Committee minutes from its May 9 meeting. At that gathering, policymakers left the fed funds target rate -- the rate banks use to charge each other interest for overnight loans -- unchanged at 5.25% for the seventh consecutive meeting.

The Fed's minutes indicated that members of the FOMC judged that the risks to economic activity were weighted to the downside, "although with turmoil in the subprime market appearing to have remained relatively well contained and business spending indicators suggesting a more encouraging outlook, these downside risks were judged to have diminished slightly."

The FOMC also reiterated inflation concerns, saying that "considerable uncertainty attended the prospects for inflation, and the risk that inflation would fail to moderate as desired remained the Committee's predominant concern," and that members felt "that it was appropriate to emphasize that core inflation remained somewhat elevated."

After taking a few minutes to digest the remarks, traders decided that on balance, the Fed is poised to lower rates the next time it makes a change.

Treasury prices relinquished most of their early gains following the release of the minutes. The 10-year note edged up 1/32 in price to yield 4.88%, having fallen to a yield of 4.86% earlier, and the 30-year bond added 4/32 to yield 5.01%.

"There is a lot of liquidity in this market, so selloffs have become buying opportunities," said Jay Suskind, head of institutional equity trading with Ryan Beck & Co. "We're more concerned about the economic numbers still to come this week, and their effect on interest rates."

U.S. indices opened lower after equities in Asia endured a punishing session their last time out. Worst hit was Shanghai, where the benchmark stock measure sank 6.5%. The pullback came after word from officials there that they would dramatically increase the taxes on trading.

The decline in China's markets did spill over -- Hong Kong's Hang Seng fell 0.9% and Tokyo's Nikkei lost 0.5% -- but the damage was somewhat contained, because the reason for China's weakness owed to what was perceived as an onerous regulatory decision rather than concerns about economic growth.

Markets in Europe were also in red, with London's FTSE and the Paris Cac each giving back about 0.9%. Frankfurt's DAX surrendered 1%.

"The news from China is irrelevant to the U.S. market, so we had a knee-jerk reaction down and then we snapped back," said Phillip Roth, chief technical market analyst with Miller Tabak. "It's a little over 1% swing from down to up, which isn't an extraordinary movement. This is telling us that there is a bid underneath. There wasn't anything surprising in what the Fed had to say, so it'll take something big to knock us out of this trend higher."

Edgar Peters, chief market strategist with Pan Agora, said that investors are comfortable looking past China, as U.S. stocks already managed to rally back following a 9% drop in the Shanghai index in late February.

"It seems as though there is a lot of complacency after the market came back after Shanghai markets fell apart the first time," said Peters. "Meanwhile, the Fed really hasn't changed its message. The report today wasn't good news, but there's so much liquidity thanks to mergers and acquisitions."

About 2.93 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by a 2-to-1 margin. Volume on the Nasdaq reached 2.03 billion shares, with winners outpacing decliners 8 to 7.

The day brought word of news of more deals, including a takeout for technology products reseller CDW (CDWC:) , which will be acquired by private-equity firm Madison Dearborn for $7.3 billion. CDW added $2.06, or 2.5%, to $85.17.

Elsewhere, bond dealer Cantor Fitzgerald said it will join its BGC Partners and eSpeed (ESPD:) divisions in a merger that's valued at $1.22 billion. eSpeed closed higher by 4 cents, or 0.4%, to $9.23.

Also in the headlines was Ford (F:) , which told Reuters that it expects sales in the U.S. to have risen in May. Ford tacked on 10 cents, or 1.2%, to $8.50.

Earnings have slowed to a crawl, but a few retailers are still posting their quarterly numbers. Among them, Williams-Sonoma (WSM:) said its profits for the latest quarter beat estimates. Revenue, however, was a bit light, and the company lowered its forecast for the current period. Shares eased by 43 cents, or 1.3%, to $33.53.

Energy prices were mixed. The front-month July contract finished higher by 34 cents to $63.49 a barrel while gasoline was off by 2.5 cents at $2.27 a gallon.

Metals prices lost ground. Gold was down $4.10 to $653.10 an ounce and silver shed a fraction of a penny to $13.22 an ounce.

Quote from: setravis on May 28, 2007, 12:40:59 PM
On the way to 14000.......
Last time we hit the 13-day MA we started back up.
Doesn't look like sellers are banging down the exit doors.
The other indices look good.The Chinese don't give a s#*# what Alan thinks.

DOW in a new up trend
Even though it could have the possibility to return to some 12900 or even 12000, it has started a new journey to the north.
What say yoy ?



Stocks Run to New Records.......


6/1/2007


The Dow Jones Industrial Average and the S&P 500 again reached new records Friday, as stocks rose following a flood of positive data on the U.S. economy.

At the close of trading, the Dow had a gain of 40.47 points, or 0.3%, at 13,668.11, marking its 26th record of the year. A 3.9% rise in Wal-Mart (WMT:) led the way.

The S&P hit a third consecutive all-time high, tacking on 5.72 points, or 0.37%, to 1536.34. The Nasdaq was better by 9.40 points, or 0.36%, at 2613.92.

For the holiday-shortened week, the Dow rose 1.2%, rebounding from a loss the previous week. The S&P 500 climbed 1.4% over the four sessions, and the Nasdaq ended higher by 2.2%.

About 2.95 billion shares changed hands on the New York Stock Exchange, with advancers beating decliners by a 2-to-1 margin. Volume on the Nasdaq reached 1.92 billion shares, and winners outpaced losers 3 to 2.

"The economy is doing better, so we have higher interest rates, but we're flush with liquidity, and equities keep going higher." said Jay Suskind, head of institutional equity trading with Ryan Beck & Co.

Enthusiasm sprang from the closely watched monthly jobs report, which showed that 157,000 workers were added to U.S. payrolls in May. Economists had expected 135,000 positions to have been created.

Additionally, the unemployment rate remained at 4.5%, and average hourly earnings, a key inflation metric, rose 0.3%. Both matched consensus estimates.

Meanwhile, job growth for the prior two months was revised downward. The government now says 10,000 fewer employees were put to work in March and April than had been first thought.

"On the positive side, the economy continues to show it can add jobs," said Michael Sheldon, chief market strategist with Spencer Clarke LLC. "There were some negatives, in that the economy continues to lose manufacturing and retail jobs. Temporary employment declined for the fourth straight month.

"However, this was generally a reassuring report, and it's unlikely this report will bring the Federal Reserve in off the sidelines to take any sort of action," he added.

Traders also welcomed more positive inflationary data, after the Commerce Department said that personal income eased 0.1% in April, compared with estimates of a 0.3% increase. Personal spending was up 0.5%, slightly above expectations.

Excluding food and energy, the personal consumption expenditure price index is now higher by 2% over the past year, down from 2.1% in March. The number is now within the Fed's comfort zone range of 1% to 2%.

"When you consider the Fed minutes from earlier this week, it looks like they are likely to remain on hold for some time," said Sheldon. "The key factors that will lead the Fed to cut rates will be accelerated weakness in the housing market, a rise in the unemployment rate, as well as a decline in income."

At 10 a.m. EDT, the Institute for Supply Management said its manufacturing index rose to a reading of 55.0 in May from 54.7 in April. Economists expected a slight decline to 54.0.

"It does now appear there has been a real improvement in the state of the manufacturing sector," said Ian Shepherdson, chief economist with High Frequency Economics. "Whether this can last in the face of rising inventory and slowing retail sales growth is another question, but for now the sector looks much healthier than in the early part of the year."

Also after the opening bell, the University of Michigan said its consumer sentiment index was revised to 88.3 from a previous reading of 87.1, slightly better than estimates. On the downside, the National Association of Realtors said pending home sales unexpectedly fell 3.2% in April.

Treasury prices dropped after the economic reports. The 10-year note tumbled 16/32 to yield 4.96%, and the 30-year bond fell 23/32 in price, yielding 5.06%. The dollar rallied against the world's major currencies.

Helping boost tech shares was a 1.5% increase in Dell (DELL:) , which said after the last close that it would cut 10% of its employees. At the same time, the PC Maker's quarterly numbers were better than had been expected.

Also on the rise was publisher Dow Jones (DJ:) , whose stock jumped 14.8% to $61.20 following word that the company's controlling family would be willing to hold talks with News Corp. (NWS:) and other potential acquirers. The announcement was a turnaround for the Bancrofts, a majority of whom had been opposing a $5 billion offer from News.

Several firms were altering ratings on stocks. Among upgrades, UBS raised its rating for auto-parts maker Lear (LEA:) to neutral from reduce. Elsewhere, Lehman Brothers downgraded Nasdaq Stock Market (NDAQ:) to equal-weight from overweight.

Lear tacked on 7 cents, or 0.2%, to finish the week at $35.74. Shares of Nasdaq eased 7 cents, or 0.2%, to $33.21.

Automakers posted vehicle sales results for May. Ford (F:) said sales fell 6.8% last month, while DaimlerChrysler (DCX:) posted a 3.9% rise. General Motors (GM:) reported a 9.6% gain in sales.

Crude oil jumped $1.07 to $65.08 a barrel. Precious metals also moved ahead. Gold advanced $10.20 to $676.90 an ounce.

Overseas, stocks were mostly stronger. Tokyo's Nikkei was up 0.5%, but Hong Kong's Hang Seng eased 0.2%. The FTSE in London added 0.8%, and the Frankfurt DAX climbed

Gold made a good move Friday.
The trend sure seems up!

Stocks rally looks like it's got legs.......
Next week's menu of U.S. economic statistics is not expected to pose any great challenges for U.S. stocks, suggesting that momentum can carry market indexes to still more record highs...

Absent any exogenous shocks, it seems like the market is still going to march higher.
There isn't anything (in the coming week's data) that would heavily impact the market in my opinion.

"Brandon Thomas,chief investment officer at Envestnet Asset Management in Chicago.
believes the U.S. economy is reasonably healthy, inflation is benign and corporate profitability is good, a combination that suggests the Fed will continue to leave interest rates where they are".

Better-than-expected profits, along with a wave of buyout activity, have been driving the U.S. stock market to record levels this spring.
it wouldn't be a surprise to see more buyout deals announced on Monday.
But for now, equity investors seem to be in a "don't worry, be happy" frame of mind...

Is this irrational exuberance? Remember, Greenspan was a little early with this observation. And don't forget, it takes awhile before the cab driver and shoeshine guy get caught up in the Tulip mania.

I'm trying to avoid getting greedy.
I added a little to cash yesterday. June and the weekend are here, but I will sleep peacefully tonight.
I should really have a martini tonight.

Wine is fine,
But a martini is fini.

Good trading to all.