Stock Market Wrap-Up.....Wednesday.....June 15, 2005

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<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR vAlign=top><TD class=brf-header1>Stock Market Update</TD><TD class=brf-smalltext vAlign=baseline noWrap align=right>http://www.briefing.com/GeneralContent/Active/PrintPage/PrintPage.aspx?PageId=304</TD></TR><TR><TD>
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</TD></TR><TR vAlign=top><TD class=brf-smalltext>Analysis of market activity every half hour.</TD><TD class=brf-smalltext align=right>http://www.briefing.com/GeneralContent/Active/EmailThis/EmailThis.aspx</TD></TR><TR><TD>
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</TD></TR><TR vAlign=top><TD class=brf-smalltext colSpan=2>See also: Bond Market Update | Stock Quotes | Stock Charts</TD></TR><TR><TD>
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</TD></TR><TR><TD class=pageDate>Updated: 15-Jun-05 16:23 ET</TD><TD class=brf-smalltext align=right>Major Indices | Intraday Charts: Dow | Nasdaq | S&P500</TD></TR><TR><TD>
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</TD></TR><TR><TD vAlign=top><!-- Content Begin--><TABLE cellSpacing=0 cellPadding=1 width="100%" border=0 xmlns:msxsl="urn:schemas-microsoft-com:xslt" xmlns:user="urn:www.briefing.com"><TBODY><TR class=sectionColor><TD class=rH colSpan=3>The market at 16:20 ET</TD></TR><TR><TD class=rD vAlign=top width="40%" colSpan=2>Dow: +18.80...
Nasdaq: +5.88... S&P: +2.67... </TD><TD class=rD with="60%">NYSE Vol: 1.3 bln.. Adv: 1927.. Dec: 1329
Nasdaq Vol: 1.7 bln.. Adv: 1705.. Dec: 1316</TD></TR><TR><TD height=3></TD></TR><TR class=sectionColor><TD class=rH>Moving the Market</TD><TD class=rL rowSpan=2>
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</TD><TD class=rH>Sector Watch</TD></TR><TR vAlign=top><TD class=rD rowSpan=2>10-yr note -2/32 yielding 4.11%

CPI and core CPI check in better than expected, easing inflation concerns; Fed's Beige Book sees sees solid economic growth amid moderate inflation

Oil closes above $55.50/bbl after EIA oil report disappoints</TD><TD class=rD>Strong: energy, materials, financial, tech, telecom svc, banks, housing, hardware, software, brokerage, transportation, retail

Weak: utilities, health care, consumer staples, biotech, drug, airline, </TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=2 width="100%" border=0 xmlns:msxsl="urn:schemas-microsoft-com:xslt" xmlns:user="urn:www.briefing.com"><TBODY><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>16:20 ET </TD><TD class=storyTitle vAlign=top>Dow +18.80 at 10566.37, Nasdaq +5.88 at 2074.92, S&P +2.67 at 1206.58</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Even though the major indices traded in negative territory throughout most of the session, modest consolidation in oil futures and improved bond yields renewed late-day buying efforts, helping investors embrace upbeat economic reports and close seven out of ten economic sectors in positive territory... While yesterday's better than expected core-PPI figure mitigated inflation fears, today's encouraging core CPI - a better gauge of underlying inflation - further validated the possibility of an end to Fed tightening sooner rather than later... The overall May CPI surprisingly fell for the first time in nearly a year, declining 0.1% versus an expected rise of 0.1%, while core CPI, which excludes volatile energy and food costs, rose just 0.1% (consensus +0.2%)... Also providing some support for stocks were rebounds in regional manufacturing activity, as evidenced in the NY Empire State Index which rose to 11.7 in June (from -11.1 in May), and May industrial production, which rose 0.4% (consensus +0.2%)... Meanwhile, the release of the Fed's Beige Book to be used at the June 29-30 FOMC meeting failed to surprise the market, but noted expansion in all 12 districts, as labor markets improved and price pressures were moderate, coupled with consolidation in oil prices and late-day loss paring in Treasurys helped improve sentiment into the close... Crude oil futures ($55.57/bbl +$0.57) had surged as much as 3.1% intra-day, amid reports that OPEC agreed to boost daily production quotas by 500K barrels and disappointing inventories data... The EIA showed a larger than expected 1.78 mln barrel decline in crude oil supplies (consensus -1.0 mln) and an unexpected draw in gasoline stockpiles of 905K barrels, versus a forecasted build of 675K barrels... Despite the pullback in oil prices, Energy still paced the way higher while the Materials sector, also getting a boost from dollar weakness, benefited from oversold conditions in commodities like steel and aluminum... The greenback fell for the first time in five sessions against the euro (1.2106) after the Treasury Dept. posted its monthly TICS capital flow data for April... The report showed that international investors bought $47.4 bln in dollar-denominated assets, well below expectations of around $70.0 bln, suggesting that the real "soft patch" during March and April was in net capital flows, not in the U.S. economy... The data also had a negative impact on the benchmark 10-year note, which was off as much as 10 ticks before closing down just 2 ticks to yield 4.11%... Even though weakness in the Treasury market lifted yields on the 10-year note to as much as 4.14%, Financial showed some resilience into the close... Providing support was strength in Bear Stearns (BSC 101.19 +0.86), which handily beat analysts' Q2 expectations, and a 3.8% surge in Golden West Financial (GDW 63.73 +2.31), which reported 6.0% growth in its mortgage origination business last month...Technology was also a bright spot, as upbeat comments out of Morgan Stanley about Apple Computer (AAPL 37.05 +1.05), boosted PC growth forecasts from Smith Barney and a turnaround in Semiconductor also lent support... Health Care, however, was the most influential leader to the downside, amid downside FY05 guidance from Chiron (CHIR 35.45 -2.50), after the biotech said it produce fewer FLUVIRIN vaccine doses than earlier anticipated, and continued profit-taking in HMOs... Utilities, a market leader of late, also closed lower, failing to shrug off rising bond yields... ..DJTA +0.5%. ..DJUA -0.4%. ..SOX +0.4%. ..DOT +0.3%. ..XOI +0.9%. ..BTK -0.4%. ..Nasdaq 100 +0.3%. ..S&P Midcap 400 +0.3%. ..Russell 2000 +0.4%. ..NYSE Adv/Dec 1927/1329. ..NASDAQ Adv/Dec 1705/1316. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>15:30 ET </TD><TD class=storyTitle vAlign=top>Dow +5, Nasdaq -1, S&P +0.76</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major averages show some resilience around the unchanged mark going into the close, as bonds close near their best levels of the session... However, even though the benchmark 10-year note (-2/32) closed lower for the sixth straight day to yield 4.11%, amid a slew of economic reports and discouraging TICS data, investors will again have their hands full tomorrow with the release of initial claims, housing starts, building permits and another read on regional manufacturing with the Philly Fed... ..NYSE Adv/Dec 1664/1585. ..NASDAQ Adv/Dec 1406/1598. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>15:00 ET </TD><TD class=storyTitle vAlign=top>Dow -5, Nasdaq -5, S&P -0.34</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Blue chip indices claw back into positive territory, as oil prices close near session lows, but slip below the flat line almost as fast... Even though crude oil futures have closed up more than 1.0% at $55.60/bbl (+$0.60), the Dow and S&P have recently inched above the unchanged mark for the first time since the EIA issued weaker than expected inventories data at 10:30 ET; however, the rebound appears short-lived... Dow components reversing course include MRK (31.84 +0.06), SBC (23.94 +0.04) and VZ (35.08 +0.07)... ..NYSE Adv/Dec 1656/1588. ..NASDAQ Adv/Dec 1388/1583. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>14:30 ET </TD><TD class=storyTitle vAlign=top>Dow -13, Nasdaq -6, S&P -1.16</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Buyers show some resolve following the recent release of the Fed's Beige Book... At the top of the hour, the Fed released its Beige Book to be used at the June 29-30 FOMC meeting, which noted expansion in all 12 districts as labor markets improved and price pressures were moderate... However, while the market has rebounded somewhat, not even further confirmation of eased inflation worries amid ongoing expansion has been enough to lift the indices into positive territory... ..NYSE Adv/Dec 1555/1661. ..NASDAQ Adv/Dec 1316/1656. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>14:00 ET </TD><TD class=storyTitle vAlign=top>Dow -29, Nasdaq -11, S&P -2.28</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices continue to chalk up losses in the absence of spirited leadership from a number of blue chips... Industrials like UTX (52.31 -0.63) and MMM (75.96 -0.70) continue to pace the way lower on the Dow, after weakening demand for short-cycle engineered products prompted ITW to cut its Q2 earnings outlook... Boeing (BA 63.66 +0.73), however, has surged after inking roughly $4.0 bln in new orders from lease companies while General Motors (GM 36.16 +0.29) has extended yesterday's gains, getting a lift after Calyon Securities raised their price target to $40 (from $35) related to expected UAW health-care concessions... ..NYSE Adv/Dec 1465/1744. ..NASDAQ Adv/Dec 1212/1738. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>13:30 ET </TD><TD class=storyTitle vAlign=top>Dow -32, Nasdaq -12, S&P -3.43</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] More of the same for equities, as selling remains widespread across most areas... Bucking the bearish bias, however, have been Energy and Materials... While rising oil prices has provided the bulk of buying interest in the former, selling pressure in the dollar has underpinned support for both sectors... The dollar has fallen for the first time in five sessions against the euro (1.2106) after the Treasury Dept. posted its monthly TICS capital flow data for April... The report has shown that international investors bought $47.4 bln in dollar-denominated assets, well below expectations of around $70.0 bln, suggesting that the real "soft patch" during March and April was in net capital flows, not in the U.S. economy... Separately, the Fed will release its Beige Book at 14:00 ET... ..NYSE Adv/Dec 1496/1686. ..NASDAQ Adv/Dec 1264/1676. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>13:00 ET </TD><TD class=storyTitle vAlign=top>Dow -31, Nasdaq -12, S&P -3.36</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Stocks improve their stance somewhat, getting a lift from a recovery effort in financial... Brokerage stocks (XBD +0.1%), in focus all morning following better than expected Q2 earnings from Bear Stearns (BSC 101.50 +1.17) and ahead of an anticipated strong report from Goldman Sachs (GS 99.50 +1.20) tomorrow, have recently turned positive... Banks (BKX +0.4%) have also shown relative strength, getting a boost from a 3.4% surge in shares of Golden West Financial (GDW 63.50 +2.08), which grew its mortgage origination business 6.0% last month... ..NYSE Adv/Dec 1446/1706. ..NASDAQ Adv/Dec 1225/1680. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>12:30 ET </TD><TD class=storyTitle vAlign=top>Dow -45, Nasdaq -15, S&P -4.50</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Little changed since the last update, as market internals still suggest a bearish bias... Decliners on the NYSE hold an 18 to 13 advantage over advancers while declining issues on the Nasdaq outpace advancing issues by a 17 to 11 edge... However, even though the ratio of down to up volume indicates an even more negative tone to trading on both the Big Board and the Composite, lighter than usual volume has provided little conviction behind today's broad-based move to the downside... Meanwhile, the Dow has found modest support above 10480 while the S&P and Nasdaq still struggle near key technical levels of 1195 and 2055, respectively... ..NYSE Adv/Dec 1318/1813. ..NASDAQ Adv/Dec 1150/1728. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>12:00 ET </TD><TD class=storyTitle vAlign=top>Dow -49, Nasdaq -15, S&P -4.95</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market remains under pressure midday, as early gains spurred by comforting economic data are offset by surging oil prices and rising bond yields... Earlier, investors received further validation that the Fed's current pace of rate hikes should be nearing its end, as May CPI fell 0.1% (consensus +0.1%) - for the first time since last July - and core-CPI checked in at just 0.1% (consensus +0.2%)... Eased inflation fears have also been accompanied by rebounds in regional manufacturing - the NY Empire Index rose to 11.7 in June (from -11.1 in May) - and May industrial production, which rose 0.4% (consensus +0.2%) versus a downwardly revised April read of -0.3%... However, a 2.8% surge in oil prices ($56.60/bbl +$1.60) amid disappointing inventories data and an expected 500K OPEC quota increase has so far stalled early follow-through buying interest and left only two out of ten economic sectors in positive territory... To that end, Energy has paced the way higher after crude oil supplies fell a larger than anticipated 1.78 mln barrels (consensus -1.0 mln) and gasoline inventories unexpectedly fell to 905K barrels (consensus +675K)... Also getting a lift from a weaker dollar, with particular strength coming from steel and aluminum, has been the Materials sector... Technology, however, remains the most influential leader to the downside due in large part to a 1.5% sell-off in Semiconductor and weakness in hardware... A UBS downgrade on Marvell Technology (MRVL 38.50 -0.98) has pressured chip stocks while reports that IT hardware spending could be hurt by weaker European economies has also weighed on tech... Interest-rate sensitive areas like Financial and Utilities have also been weak, losing ground amid widespread weakness in the Treasury market... Bonds have been weak all morning amid a combination of positive economic data and disappointing TICS data, as the 10-year note is off 4 ticks to yield 4.12%... Losses in biotech and drug have prevented Health Care from extending yesterday's modest gains while downside Q2 and FY05 guidance from Illinois Tool Works (ITW 80.99 -1.42) has weighed on the Industrials sector... ..DJTA -0.2%. ..DJUA -0.8%. ..SOX -1.5%. ..DOT -1.2%. ..XOI +0.6%. ..BTK +1.2%. ..Nasdaq 100 -0.9%. ..S&P Midcap 400 -0.4%. ..Russell 2000 -0.4%. ..NYSE Adv/Dec 1340/1770. ..NASDAQ Adv/Dec 1161/1705. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>11:30 ET </TD><TD class=storyTitle vAlign=top>Dow -24, Nasdaq -9, S&P -2.54</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices back off recent lows, following upbeat comments from President Bush on Energy, but stocks still trade in negative territory... However, while Bush has said, "We must take action now on causes of rising oil prices and be aggressive in finding alternative fuel sources," oil prices have only pulled back modestly, providing little enthusiasm for a more aggressive recovery effort... ..NYSE Adv/Dec 1265/1778. ..NASDAQ Adv/Dec 1099/1703. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>11:00 ET </TD><TD class=storyTitle vAlign=top>Dow -40, Nasdaq -13, S&P -4.54</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market spikes to session lows as oil prices surpass $56/bbl following disappointing oil inventories data... The EIA has reported a larger than expected 1.78 mln barrel decline in crude oil supplies (consensus -1.0 mln) and an unexpected draw in gasoline inventories of 905K barrels, versus an expected increase of 675K barrels... Even in the face of OPEC's fifth quota increase over the last 12 months - by 500K to 28 mln barrels a day - crude oil futures have now risen to a seven-week high near $56.50/bbl (+$1.50)... ..XOI +0.5%. ..NYSE Adv/Dec 1246/1720. ..NASDAQ Adv/Dec 1055/1650. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>10:30 ET </TD><TD class=storyTitle vAlign=top>Dow +5, Nasdaq -2, S&P +0.12</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices back off their best levels, spearheaded by renewed selling pressure in technology... Within the last 30 minutes, the Semi Index (+0.7%) has turned negative, due in large part to a 2.1% decline in Marvell Technology (MRVL 38.66 -0.82), which was downgraded to Neutral from Buy at UBS, and weakness in bellwether Intel (INTC 26.59 -0.11)... Also taking some steam out of the influential tech sector has been weakness in Disk Drive and reports that IT hardware spending could be hurt by weaker European economies... ..NYSE Adv/Dec 1456/1385. ..NASDAQ Adv/Dec 1300/1290. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>10:00 ET </TD><TD class=storyTitle vAlign=top>Dow +24, Nasdaq +5, S&P +2.24</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Equities are still on the offensive as the bulk of sector leadership remains positive... The Materials sector has paced the way higher, getting a lift from a declining dollar, while strength in software and hardware has helped Technology erase yesterday's losses... Financial and Industrials have also been influential leaders to the upside while Energy has shown relative strength as oil prices ($55.48/bbl +$0.48) climb ahead of the EIA's weekly inventories report (10:30 ET) - crude oil supplies (consensus -1.0 mln), gasoline stockpiles (consensus +675K) and distillates (consensus +1.5 mln)... Health Care, however, has traded lower amid weakness in biotech and drug while rising bond yields have weighed on Utilities... ..NYSE Adv/Dec 1628/899. ..NASDAQ Adv/Dec 1381/997. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:40 ET </TD><TD class=storyTitle vAlign=top>Dow +33, Nasdaq +9, S&P +3.30</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market opens on an upbeat note, getting a boost from another positive read on inflation... While core-CPI increases of 0.3% and 0.4% in February and March, respectively, had raised alarms about the trend in inflation, today's stronger than expected core-CPI read of 0.1% (consensus +0.2%), coupled with last month's unchanged reading, have confirmed that scattered increases in inflation data early this year were temporary... Further supporting the notion that the Fed's tightening action should be nearing its end, total CPI fell 0.1% (consensus +0.1%), for the first time since last July, knocking the year-over-year increase in total CPI to 2.8%, from 3.5% the prior month... ..NYSE Adv/Dec /. ..NASDAQ Adv/Dec /. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:17 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.9. Nasdaq futures vs fair value: +10.5. Futures trade holds relatively steady, following another batch of economic data... May industrial production has checked in at 0.4%, slightly above consensus, while capacity utilization of 79.4% - below the potentially dangerous 80% level historically consistent with bottlenecks and rising pricing pressures - has basically matched expectations </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:00 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.8. Nasdaq futures vs fair value: +10.5. Still shaping up to be a modestly higher open for the cash market, as futures indications hold steady above fair value... Aside from encouraging CPI data providing a floor of early buying support, better than expected Q2 earnings from Bear Stearns (BSC) have also helped investors deal with downside Q2 and FY05 guidance from Illinois Tool Works (ITW) and rising oil prices ($55.50/bbl +$0.50), which have climbed even in the face of OPEC's anticipated 500K bbl/day increase... Separately, May Industrial Production (consensus +0.2%) and Capacity Utilization (consensus 79.3%) will be released at 9:15 ET</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>08:34 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +3.6. Nasdaq futures vs fair value: +8.5. Futures trade gets a boost following better than expected CPI data, and now suggests a higher open for the indices... Total CPI fell 0.1% (consensus +0.1%) and core CPI also checked in below expectations, rising just 0.1%, suggesting a favorable read on inflation... The Treasury market has inched higher amid eased inflationary pressures, as the 10-yr note, which was unchanged prior to the release, is now up 4 ticks to yield 4.08%... Also out, NY Empire State Index checks in at 11.7 (consensus 1.0) while April business inventories rose 0.3% (consensus +0.4%)</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>08:00 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: +2.5. Futures market versus fair value suggesting a flat to slightly higher open for the cash market ahead of key economic data... At 8:30 ET, investors will get another read on inflation with the release of May CPI (consensus +0.1%) and core CPI (consensus +0.2%)... Also out at the bottom of the hour will be the NY Empire State Index (consensus 1.0) and April business inventories (consensus +0.4%)</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:21 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art> [BRIEFING.COM] S&P futures vs fair value: +0.8. Nasdaq futures vs fair value: +3.0. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:21 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] FTSE...5047.30...+0.50...+0.0%. DAX...4595.88...+4.19...+0.1%.</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:21 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Nikkei...11415.88...+79.96...+0.7%. Hang Seng...13914.30...+9.49...+0.1%.</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>16:20 ET </TD><TD class=storyTitle vAlign=top>Dow +25.01 at 10547.57, Nasdaq +0.07 at 2069.03, S&P +3.09 at 1203.91</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Despite some notable economic data in the form of the Retail Sales and Producer Price Index reports for May, and better than expected earnings news from the likes of Best Buy (BBY 67.80, +8.68) and Lehman Bros. (LEH 96.05, +3.00), the major indices moved in laborious fashion Tuesday, holding close to the unchanged mark for the majority of the session... Altogether the trading action was uneventful and provided a firsthand glimpse at what the phrase "summer doldrums" means... The vapid showing was striking when taking into account that the combination of a worse than expected Retail Sales report and a better than expected PPI report provided a good economic mix of moderating growth and contained inflation that reinforced the notion that the Fed's tightening action should be nearing its end... Enthusiasm was held in check, however, by the realization that the Consumer Price Index - a more telling inflation report for Fed officials - was going to be released before Wednesday's open... Additionally, the market was buffeted by a lack of participation from the technology sector (-0.50%) and a lack of concerted buying interest in other economic sectors... Some exceptions in the latter regard included the Consumer Discretionary (+1.0%) and Health Care (+0.80%) sectors, which rode the coattails of Best Buy and Mylan Labs (MYL 19.58, +1.88), both of which increased their EPS outlook for the current fiscal year... Best Buy, in particular, generated a bid in a host of other retailers that spearheaded the Consumer Discretionary's sector's outperformance... Other standouts in that space included General Motors (GM 35.87, +1.42), which reportedly informed the UAW that an agreement to cut health care costs is needed by the end of this month, and Ford (F 10.82, +0.30), which jumped in response to Monday's late-breaking news its Hertz unit is planning an IPO... By and large, big moves in Tuesday's session were reserved for individual stocks like these and Lehman Bros.... The investment bank topped the Q2 (May) consensus EPS estimate of $2.23 by three cents and rallied as investors cheered the news, deeming it better than feared after Morgan Stanley's (MWD 50.60, -0.28) Q2 warning on Monday... Separately, the Treasury market spent most of its day on the defensive in a move that pundits attributed to a curve trade taking precedence over what would typically be considered to be supportive economic data... To that end, Retail Sales in May slipped 0.5% (consensus -0.2%) and sales, ex-auto, declined 0.2% (consensus +0.2%); meanwhile, PPI fell -0.6% (consensus -0.2%) while core-PPI, which excludes food and energy, increased just 0.1% (consensus +0.2%)... The 10-yr note shed 4 ticks, sending its yield up to 4.11%... As a reminder, the CPI report will be a focal point before Wednesday's open, but attention will eventually shift to OPEC's meeting in Vienna where it is expected the cartel will agree to a 500K barrel per day increase in production quotas... ..NYSE Adv/Dec 2058/1185. ..NASDAQ Adv/Dec 1739/1248. </TD></TR></TBODY></TABLE>
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