<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD class=pageDate>Updated: 16-Jun-05 16:53 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:user="urn:www.briefing.com" xmlns:msxsl="urn:schemas-microsoft-com:xslt"><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: +12.28...
Nasdaq: +14.23... S&P: +4.35... </TD><TD class=rD with="60%">NYSE Vol: 1.4 bln.. Adv: 2197.. Dec: 1086
Nasdaq Vol: 1.8 bln.. Adv: 1993.. Dec: 1035</TD></TR><TR><TD height=3></TD></TR><TR class=sectionColor><TD class=rH>Moving the Market</TD><TD class=rL rowSpan=2>
</TD><TD class=rH>Sector Watch</TD></TR><TR vAlign=top><TD class=rD rowSpan=2>10-yr note +3/32 yielding 4.08%
Mixed economic data, Goldman misses Q2 forecasts but analysts out positive on stock, GM warns UAW about reducing health benefits</TD><TD class=rD>Strong: materials, energy, tech, financial, industrials, hardware, semi, networking, biotech, transportation, airline, brokerage, retail
Weak: telecom svc, utilities, consumer staples, drug, autos</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=2 width="100%" border=0 xmlns:user="urn:www.briefing.com" xmlns:msxsl="urn:schemas-microsoft-com:xslt"><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 +12.28 at 10578.65, Nasdaq +14.23 at 2089.15, S&P +4.35 at 1210.93</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] The stock market opened in split fashion amid mixed economic data, but leadership from a number of sectors and a rebound in bonds helped the indices close near session highs... Before the open, May housing starts checked in with a modest 0.2% to a 2.009 annual rate (consensus 2.050 mln) while May building permits also missed economists' forecasts, falling 4.6% to 2.050 mln (consensus 2.106 mln)... However, both of the Commerce Dept.'s reports still reflected strong growth in the housing sector, as homebuilders remain on pace to record their best year since 1978... Also providing a floor of support for stocks was benign unemployment data, as weekly jobless claims rose a statistically insignificant 1K to 333K (consensus 330K), marking the fifth straight week the data have been in the narrow range of 330-335K... Meanwhile, an unexpected decline in the June Philadelphia Fed index, which posted its first negative reading (-2.2) since May 2003 and came in well below expectations of 10.0, failed to corroborate the expansion evidenced in yesterday's NY Empire State Index and took some steam out of the market's already lackluster efforts... But since the Philly Fed doesn't provide a consistent read for the national ISM figure, coupled with a six-month outlook suggesting that the slowdown may be temporary and a rebound in bonds, buyers showed enough tenacity to close seven out of ten economic sectors closed higher... The benchmark 10-year note, which got an additional boost following comments from Kansas City Fed President Hoenig, closed up 3 ticks to yield 4.08%... Pacing the way higher for the second consecutive session was Energy, as crude oil futures ($56.58/bbl +$1.01) closed near their best levels of the day... Also surging more than 1.0% was the Materials sector, amid strong follow-through buying interest in gold, copper, aluminum and steel while upside Q2 guidance from Potash Corp. (POT 99.65 +3.31) provided a boost to the nonmetallic mineral mining group... Financial was the most influential leader to the upside, taking advantage of a 1.5% surge in the Brokerage group following Goldman Sachs' (GS 102.45 +3.26) Q2 report... Even though Goldman missed analysts' expectations by $0.19, several analysts - many of which expected profits to decline for the first time in about three years due to declines in trading volatility and slower investment management activity - were out positive on the stock and Goldman's growth prospects throughout the session... Also providing some spirited leadership was Technology, which was strong across the board... Hardware was the best performing sub-sector, surging amid reports that Michael Dell may be interested in licensing Apple Computer's (AAPL 37.98 +0.85) Mac Operating System... Semiconductor was also a focal point after Banc of America upgraded the analog chip sector to Overweight from Neutral and Integrated Device Technology (IDTI 11.51 -1.02) announced plans to acquire Integrated Circuit Systems (ICST 21.77 +2.03) for $1.7 bln... Consumer Discretionary also traded higher, as a 1.3% surge in Homebuilding helped overshadow a 2.1% decline in General Motors (GM 35.37 -0.97)... GM warned the UAW that it may reduce health benefits by as much as $2.0 bln over the next two years unless the UAW agrees to cut costs... Health Care, in focus all day after Pfizer (PFE 28.60 +0.17) announced plans to buy Vicuron Pharmaceuticals (MICU 28.21 +12.41) for $1.9 bln in cash, was also strong... Providing additional sector support was Wyeth (WYE 43.51 +0.32), which received FDA approved for its antibiotic Tygacil, AmerisourceBergen (ABC 68.02 +0.81), which affirmed its FY05 and FY06 EPS outlook, and a 2.4% surge in Biotech... Telecom Services, however, closed lower amid reports that several large MCI Inc. (MCIP 25.69 -0.01) shareholders will solicit proxy cards to vote against MCI's agreed-upon $8.44 bln acquisition by Verizon Communications (VZ 34.94 -0.22)... The Utilities sector was also weak, as valuation concerns sparked consolidation in several utility stocks (i.e. EXC, PEG and AEP) trading near 52-week highs, while Consumer Staples also showed relative weakness, losing some ground after a German court ruled against parts of Wal-Mart's (WMT 49.35 -0.50) ethics code... ..DJTA +1.1%. ..DJUA -0.2%. ..SOX +0.5%. ..DOT +0.6%. ..XOI +1.3%. ..BTK +2.4%. ..Nasdaq 100 +0.5%. ..S&P Midcap 400 +0.9%. ..Russell 2000 +1.1%. ..NYSE Adv/Dec 2197/1086. ..NASDAQ Adv/Dec 1993/1035. </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 +15, Nasdaq +13, S&P +4.65</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Stocks continue to trade at improved levels going into the close, as the indices show resilience near key resistance levels... Even though volume on the NYSE has only recently surpassed 1.0 bln shares, blue chips continue to trade near 3-month highs, as the S&P is less than 1 point away from breakeven on the year... Meanwhile, a pick up in volume at the Nasdaq heading into options expiration tomorrow has provided a bit more conviction behind today's upside moves in technology, but even if the Nasdaq closes with a 0.6% gain, it will still be off about 4.0% for 2005... ..NYSE Adv/Dec 2070/1172. ..NASDAQ Adv/Dec 1860/1143. </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 +9, Nasdaq +10, S&P +3.43</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] More of the same for stocks, as the Nasdaq continues to outpace its blue chip counterparts to the upside... Hardware (+2.0%) remains technology's best performing sub-sector, as Apple Computer (AAPL 37.74 +0.61) holds onto solid gains fueled by reports that Michael Dell may be interested in licensing AAPL's Mac OS... Software (-0.2%), however, has been a weak spot for technology, as a loss in Electronic Arts (ERTS 57.69 -1.37) offsets a modest gain in Adobe Systems (ADBE 32.28 +0.28)... ERTS has sold off amid reports that Ubisoft Entertainment - 20% of which is owned by ERTS - wants to remain independent while ADBE has climbed ahead of its Q2 earnings report after the bell... ..NYSE Adv/Dec 1991/1220. ..NASDAQ Adv/Dec 1838/1137. </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 -5, Nasdaq +7, S&P +1.95</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices continue to trade in split fashion, as stocks drift sideways over the last 30 minutes... Bonds, however, have recently climbed to session highs following comments from Kansas City Fed President Hoenig... The 10-year note is now up 5 ticks to yield 4.08% as Hoenig calls for a wide 3.5% to 4.5% neutral fed funds rate and says inflation data should be watched "carefully."... At the high end (4.5%), such additional Fed tightening would result in six more 25-basis point rate hikes... ..NYSE Adv/Dec 1955/1242. ..NASDAQ Adv/Dec 1741/1221. </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 -6, Nasdaq +6, S&P +1.72</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Sellers show some tenacity within the last 15 minutes, knocking the Dow back below the flat line... Even though GM (-3.2%) continues to pace the declines on the Dow, Boeing (BA 63.78 -0.63) has also shown relative weakness following reports that Airbus has received the majority ($27.5 bln out of $40.0 bln) of new business at the Paris Air Show... Weakness in Caterpillar (CAT 97.97 -0.61), after CSFB downgraded the Capital Goods sector to Neutral, has also pressured the price-weighted index... ..NYSE Adv/Dec 1965/1218. ..NASDAQ Adv/Dec 1751/1183. </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 +5, Nasdaq +8, S&P +2.67</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Little changed since the last update as the major averages continue to vacillate in roughly the same ranges... Biotech, however, has gotten a recent boost amid new speculation that Genentech (DNA 81.26 +1.31) may make a bid for Biogen Idec (BIIB 35.85 +0.82)...While such a combination may appear attractive, as both companies receive royalties from Rituxan and BIIB's stock is still off nearly 50% from its mid-February highs, the potential distraction of DNA's management and dilution of Roche's ownership continue to make such a merger highly unlikely... ..BTK +1.8%. ..NYSE Adv/Dec 1874/1283. ..NASDAQ Adv/Dec 1693/1212. </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 +4, Nasdaq +8, S&P +2.66</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices improve their stance somewhat, as the Dow turns slightly positive and market internals still suggest a modestly upbeat sentiment... Advancers on the NYSE outpace decliners by 17 to 13 margin while advancing issues on the Nasdaq hold a 17 to 11 edge over declining issues... A 2-to-1 ratio of up to down volumes on both the Big Board and the Composite, however, underscores a more bullish bias... Meanwhile, the Dow, S&P and Nasdaq continue to trade well above initial support levels but modest buying interest have not been enough to push the major averages through resistance levels of 10609, 1213 and 2095, respectively... ..NYSE Adv/Dec 1773/1350. ..NASDAQ Adv/Dec 1712/1180. </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 -5, Nasdaq +6, S&P +1.45</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices spike lower following a disappointing read on regional manufacturing activity... At the top of the hour, the June Philadelphia Fed index checked in at -2.2, well below expectations of 10.0 and failing to add evidence that manufacturing is accelerating... Even though the very mixed read from the abutting regions of NY (Empire Index) and Philadelphia don't provide a consistent read for the national ISM figure, the first negative reading on the Philly Fed in roughly two years has taken some steam out of the market's already tepid efforts... Perhaps preventing the market from slipping even further, however, has been a rebound in Treasurys, as the 10-yr note has inched up 2 ticks in response to the weaker than expected data, knocking the benchmark yield down to 4.08%... ..NYSE Adv/Dec 1840/1279. ..NASDAQ Adv/Dec 1622/1195. </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 +20, Nasdaq +11, S&P +3.84</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market holds onto modest gains midday amid spirited industry leadership and encouraging economic data... May housing starts rose a modest 0.2% to 2.009 units (consensus 2.050 mln), but marked the fourth time in five months that starts have surpassed the 2.0 mln annual rate... May building permits also missed forecasts, falling 4.6% to 2.050 mln (consensus 2.106 mln) and below April's 22-year high of 2.148 mln, but were still above the level of starts, suggesting that starts will remain at high levels in the months ahead... Also, weekly jobless claims rose a modest 1K to 333K (consensus 330K), marking the fifth straight week the data have been in the narrow range of 330-335K... Meanwhile, of the seven economic sectors trading higher, the Materials sector has led the charge amid solid momentum in steel, gold and aluminum while upside Q2 guidance from Potash Corp. (POT 103.81 +7.47) has provided a boost to the nonmetallic mineral mining group... Energy has also been among the best performing sectors, benefiting from higher oil prices, while leadership in Semiconductor and Hardware have helped Technology post a respectable gain... Providing a lift to chip stocks has been Integrated Device Technology's (IDTI 11.81 -0.72) proposal to acquire Integrated Circuit Systems (ICST 22.15 +2.41) for $1.7 bln as well as Banc of America's upgrade on the analog chip sector to Overweight from Neutral... Consumer Discretionary has also traded higher, as a surge in Homebuilding (+1.1%) offsets a 2.7% decline in General Motors (GM 35.37 -0.97), which warned the UAW it may reduce health benefits... Financial has also been an influential leader to the upside, getting a lift from widespread gains in Brokerage... Even though Goldman Sachs' (GS 101.65 +2.46) Q2 earnings missed analysts' expectations by $0.19, many analysts had expected profits to decline for the first time in about three years and have since made positive comments about Goldman's outlook... The other interest-rate sensitive sector - Utilities - however, has been the worst performing sector as yields on the benchmark 10-year note (-3/32) have climbed (4.11%) in six of the last seven sessions ahead of the Philly Fed data and valuation concerns spark consolidation in several utility stocks trading near 52-week highs... Consumer Staples has also been under pressure, losing some ground after CSFB downgraded the tobacco sector to Neutral... ..DJTA +0.7%. ..DJUA -0.8%. ..SOX +0.7%. ..DOT +0.4%. ..XOI +0.8%. ..BTK +1.7%. ..Nasdaq 100 +0.5%. ..S&P Midcap 400 +0.5%. ..Russell 2000 +0.5%. ..NYSE Adv/Dec 1875/1197. ..NASDAQ Adv/Dec 1674/1108. </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 +11, Nasdaq +8, S&P +2.76</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices back off their best levels, as the Dow clings to modest gains... Providing much of the buying support, or roughly 11 points of the blue chip index's move to the upside, has been a 2.2% surge in shares of Alcoa (AA 28.17 +0.61) coupled with solid gains from the likes of HON (+1.0%), DD (+0.9%) and MMM (+0.9%)... Preventing a stronger performance, however, has been a 3.0% sell-off in shares of General Motors (GM 35.24 -1.10), which has warned the UAW it may reduce health benefits for UAW retirees by as much as $2.0 bln over two years unless the union agrees to cost-cutting concessions before contract expiration in 2007... Separately, the June Philadelphia Fed Index (consensus 10.0) will be released at 12:00 ET... ..NYSE Adv/Dec 1842/1162. ..NASDAQ Adv/Dec 1579/1143. </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 +21, Nasdaq +11, S&P +4.23</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Renewed buying interest, spearheaded by leadership in financial, lifts the major averages to session highs... In focus all week, amid better than expected earnings from Lehman Brothers (LEH 96.59 +1.15) and Bear Stearns (BSC 102.73 +1.39) as well as a Q2 profit warning from Morgan Stanley (MWD 51.88 +1.27), the financial sector has again made headlines following Goldman Sachs' (GS 101.19 +2.00) Q2 report... However, even though Goldman's Q2 earnings missed analysts' expectations by $0.19, the stock has surged 2.0%... While Goldman has attributed its quarterly miss to "challenging market conditions," the investment bank has stated that the economic outlook remains favorable, its client franchise remains broad and deep, and that it retains a leadership position in critical businesses... It appears investors have also taken into account the fact that many analysts expected Goldman, given its larger exposure to trading, to report its first decline in quarterly profit in about three years... ..NYSE Adv/Dec 1779/1114. ..NASDAQ Adv/Dec 1581/1068. </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 -2, Nasdaq +5, S&P +1.82</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Equities still fluctuate around the unchanged mark as investors find few catalysts to more aggressively move the indices in either direction... One such piece of news having minimal impact on the market has been the latest read on initial claims... Jobless benefits rose a statistically insignificant 1K to 333K, marking the fifth straight week the data have been in the narrow range of 330-335K, while the steady trend in claims remains consistent with the 180K average gain in nonfarm payrolls recorded so far in 2005... ..NYSE Adv/Dec 1551/1252. ..NASDAQ Adv/Dec 1379/1132. </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 -17, Nasdaq +5, S&P +0.74</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices still trade in split fashion as the bulk of sector leadership remains mixed... The Materials sector has again paced early action to the upside, amid continued momentum in steel stocks, strength in diversified chemicals and upside Q2 guidance from Potash Corp. (POT 103.81 +7.47)... Technology has also traded higher, getting a boost from Semiconductor and Hardware, while Energy has extended yesterday's gains as oil prices continue to climb... Interest-rate sensitive areas like Financial and Utilities, however, have been unable to shrug off rising bond yields while Consumer Staples has been under pressure after CSFB downgraded the tobacco sector to Neutral... ..NYSE Adv/Dec 1242/1289. ..NASDAQ Adv/Dec 1331/997. </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 -11, Nasdaq +4, S&P +0.80</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market opens in lackluster fashion, as investors digest mixed economic data... May housing starts were up a fractional 0.2% to a 2.009 annual rate, slightly below forecasts of 2.050 mln, but marked the fourth time in five months that starts have surpassed the 2.0 mln annual rate... Another report under the microscope that has so far stalled early follow-through buying interest in homebuilding stocks (-0.2%) has been May building permits, which fell 4.6% to 2.050 mln (consensus 2.106 mln) but checked in above the level of starts, as has been the case in recent months... ..NYSE Adv/Dec /. ..NASDAQ Adv/Dec /. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:15 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: +1.5. Nasdaq futures vs fair value: +1.5. </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: +1.4. Nasdaq futures vs fair value: +1.5. Still shaping up to be a modestly higher start for the cash market... Meanwhile, Financial should be in focus after Goldman Sachs (GS) missed analysts' Q2 earnings forecasts for the first time in nine quarters... Autos should also garner attention following an upgrade on Ford Motor (F) at Deutsche Bank and reports that GM has warned the UAW it may reduce health benefits for retirees unless the union agrees to cost-cutting concessions</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: +1.0. Nasdaq futures vs fair value: +1.5. Futures trade holds relatively steady following economic data, still indicating a slightly higher open for the indices... May housing starts rose 0.2% to 2.009 mln units, slightly below expectations of 2.050 mln, while May building permits fell 4.6% to 2.050 mln units and initial claims rose 1K to 333K, relatively matching expectations... Bonds have also held relatively steady, as the 10-yr note is off 5 ticks to yield 4.11% </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: +2.3. Nasdaq futures vs fair value: +3.5. Futures market versus fair value suggesting a higher open for the cash market amid new M&A activity and ahead of key economic data... Pfizer (PFE) plans to buy Vicuron Pharmaceuticals (MICU) for $1.9 bln in cash while Integrated Device Technology (IDTI) has agreed to acquire Integrated Circuit Systems (ICST) for $1.7 bln in cash and stock... At 8:30 ET, initial claims (consensus 330K), May housing starts (consensus 2050K) and May building permits (consensus 2106K)</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:27 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] FTSE...5039.30...+19.80...+0.4%. DAX...4566.96...+18.54...+0.4%.</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:27 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Nikkei...11416.38...+0.50...0%. Hang Seng...13833.53...-80.77...-0.6%.</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 +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 a possible 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 a June NY Empire State Index reading of 11.7 (up 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 - and helped improve sentiment as oil prices consolidated and late-day losses were pared in the Treasury market... Crude oil futures 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, but closed up 1.0% at $55.57/bbl (+$0.57)... 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 (1.2111) 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 2/32 to yield 4.11%... Even though weakness in the Treasury market lifted yields on the 10-year note to as much as 4.14% intraday, the Financial sector 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 regarding overblown inventory concerns at Apple Computer (AAPL 37.05 +1.05), boosted PC growth forecasts from Smith Barney and a turnaround in Semiconductor lent support... Telecom Services also showed relative strength after a large MCI Inc.(MCIP 25.70 +0.21) shareholder - Deephaven Capital Management - said they would fight Verizon Communications' (VZ 35.16 +0.15) proposed $8.6 bln acquisition of MCI... 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 will 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></TBODY></TABLE>
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Nasdaq: +14.23... S&P: +4.35... </TD><TD class=rD with="60%">NYSE Vol: 1.4 bln.. Adv: 2197.. Dec: 1086
Nasdaq Vol: 1.8 bln.. Adv: 1993.. Dec: 1035</TD></TR><TR><TD height=3></TD></TR><TR class=sectionColor><TD class=rH>Moving the Market</TD><TD class=rL rowSpan=2>
Mixed economic data, Goldman misses Q2 forecasts but analysts out positive on stock, GM warns UAW about reducing health benefits</TD><TD class=rD>Strong: materials, energy, tech, financial, industrials, hardware, semi, networking, biotech, transportation, airline, brokerage, retail
Weak: telecom svc, utilities, consumer staples, drug, autos</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=2 width="100%" border=0 xmlns:user="urn:www.briefing.com" xmlns:msxsl="urn:schemas-microsoft-com:xslt"><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 +12.28 at 10578.65, Nasdaq +14.23 at 2089.15, S&P +4.35 at 1210.93</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] The stock market opened in split fashion amid mixed economic data, but leadership from a number of sectors and a rebound in bonds helped the indices close near session highs... Before the open, May housing starts checked in with a modest 0.2% to a 2.009 annual rate (consensus 2.050 mln) while May building permits also missed economists' forecasts, falling 4.6% to 2.050 mln (consensus 2.106 mln)... However, both of the Commerce Dept.'s reports still reflected strong growth in the housing sector, as homebuilders remain on pace to record their best year since 1978... Also providing a floor of support for stocks was benign unemployment data, as weekly jobless claims rose a statistically insignificant 1K to 333K (consensus 330K), marking the fifth straight week the data have been in the narrow range of 330-335K... Meanwhile, an unexpected decline in the June Philadelphia Fed index, which posted its first negative reading (-2.2) since May 2003 and came in well below expectations of 10.0, failed to corroborate the expansion evidenced in yesterday's NY Empire State Index and took some steam out of the market's already lackluster efforts... But since the Philly Fed doesn't provide a consistent read for the national ISM figure, coupled with a six-month outlook suggesting that the slowdown may be temporary and a rebound in bonds, buyers showed enough tenacity to close seven out of ten economic sectors closed higher... The benchmark 10-year note, which got an additional boost following comments from Kansas City Fed President Hoenig, closed up 3 ticks to yield 4.08%... Pacing the way higher for the second consecutive session was Energy, as crude oil futures ($56.58/bbl +$1.01) closed near their best levels of the day... Also surging more than 1.0% was the Materials sector, amid strong follow-through buying interest in gold, copper, aluminum and steel while upside Q2 guidance from Potash Corp. (POT 99.65 +3.31) provided a boost to the nonmetallic mineral mining group... Financial was the most influential leader to the upside, taking advantage of a 1.5% surge in the Brokerage group following Goldman Sachs' (GS 102.45 +3.26) Q2 report... Even though Goldman missed analysts' expectations by $0.19, several analysts - many of which expected profits to decline for the first time in about three years due to declines in trading volatility and slower investment management activity - were out positive on the stock and Goldman's growth prospects throughout the session... Also providing some spirited leadership was Technology, which was strong across the board... Hardware was the best performing sub-sector, surging amid reports that Michael Dell may be interested in licensing Apple Computer's (AAPL 37.98 +0.85) Mac Operating System... Semiconductor was also a focal point after Banc of America upgraded the analog chip sector to Overweight from Neutral and Integrated Device Technology (IDTI 11.51 -1.02) announced plans to acquire Integrated Circuit Systems (ICST 21.77 +2.03) for $1.7 bln... Consumer Discretionary also traded higher, as a 1.3% surge in Homebuilding helped overshadow a 2.1% decline in General Motors (GM 35.37 -0.97)... GM warned the UAW that it may reduce health benefits by as much as $2.0 bln over the next two years unless the UAW agrees to cut costs... Health Care, in focus all day after Pfizer (PFE 28.60 +0.17) announced plans to buy Vicuron Pharmaceuticals (MICU 28.21 +12.41) for $1.9 bln in cash, was also strong... Providing additional sector support was Wyeth (WYE 43.51 +0.32), which received FDA approved for its antibiotic Tygacil, AmerisourceBergen (ABC 68.02 +0.81), which affirmed its FY05 and FY06 EPS outlook, and a 2.4% surge in Biotech... Telecom Services, however, closed lower amid reports that several large MCI Inc. (MCIP 25.69 -0.01) shareholders will solicit proxy cards to vote against MCI's agreed-upon $8.44 bln acquisition by Verizon Communications (VZ 34.94 -0.22)... The Utilities sector was also weak, as valuation concerns sparked consolidation in several utility stocks (i.e. EXC, PEG and AEP) trading near 52-week highs, while Consumer Staples also showed relative weakness, losing some ground after a German court ruled against parts of Wal-Mart's (WMT 49.35 -0.50) ethics code... ..DJTA +1.1%. ..DJUA -0.2%. ..SOX +0.5%. ..DOT +0.6%. ..XOI +1.3%. ..BTK +2.4%. ..Nasdaq 100 +0.5%. ..S&P Midcap 400 +0.9%. ..Russell 2000 +1.1%. ..NYSE Adv/Dec 2197/1086. ..NASDAQ Adv/Dec 1993/1035. </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 +15, Nasdaq +13, S&P +4.65</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Stocks continue to trade at improved levels going into the close, as the indices show resilience near key resistance levels... Even though volume on the NYSE has only recently surpassed 1.0 bln shares, blue chips continue to trade near 3-month highs, as the S&P is less than 1 point away from breakeven on the year... Meanwhile, a pick up in volume at the Nasdaq heading into options expiration tomorrow has provided a bit more conviction behind today's upside moves in technology, but even if the Nasdaq closes with a 0.6% gain, it will still be off about 4.0% for 2005... ..NYSE Adv/Dec 2070/1172. ..NASDAQ Adv/Dec 1860/1143. </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 +9, Nasdaq +10, S&P +3.43</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] More of the same for stocks, as the Nasdaq continues to outpace its blue chip counterparts to the upside... Hardware (+2.0%) remains technology's best performing sub-sector, as Apple Computer (AAPL 37.74 +0.61) holds onto solid gains fueled by reports that Michael Dell may be interested in licensing AAPL's Mac OS... Software (-0.2%), however, has been a weak spot for technology, as a loss in Electronic Arts (ERTS 57.69 -1.37) offsets a modest gain in Adobe Systems (ADBE 32.28 +0.28)... ERTS has sold off amid reports that Ubisoft Entertainment - 20% of which is owned by ERTS - wants to remain independent while ADBE has climbed ahead of its Q2 earnings report after the bell... ..NYSE Adv/Dec 1991/1220. ..NASDAQ Adv/Dec 1838/1137. </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 -5, Nasdaq +7, S&P +1.95</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices continue to trade in split fashion, as stocks drift sideways over the last 30 minutes... Bonds, however, have recently climbed to session highs following comments from Kansas City Fed President Hoenig... The 10-year note is now up 5 ticks to yield 4.08% as Hoenig calls for a wide 3.5% to 4.5% neutral fed funds rate and says inflation data should be watched "carefully."... At the high end (4.5%), such additional Fed tightening would result in six more 25-basis point rate hikes... ..NYSE Adv/Dec 1955/1242. ..NASDAQ Adv/Dec 1741/1221. </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 -6, Nasdaq +6, S&P +1.72</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Sellers show some tenacity within the last 15 minutes, knocking the Dow back below the flat line... Even though GM (-3.2%) continues to pace the declines on the Dow, Boeing (BA 63.78 -0.63) has also shown relative weakness following reports that Airbus has received the majority ($27.5 bln out of $40.0 bln) of new business at the Paris Air Show... Weakness in Caterpillar (CAT 97.97 -0.61), after CSFB downgraded the Capital Goods sector to Neutral, has also pressured the price-weighted index... ..NYSE Adv/Dec 1965/1218. ..NASDAQ Adv/Dec 1751/1183. </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 +5, Nasdaq +8, S&P +2.67</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Little changed since the last update as the major averages continue to vacillate in roughly the same ranges... Biotech, however, has gotten a recent boost amid new speculation that Genentech (DNA 81.26 +1.31) may make a bid for Biogen Idec (BIIB 35.85 +0.82)...While such a combination may appear attractive, as both companies receive royalties from Rituxan and BIIB's stock is still off nearly 50% from its mid-February highs, the potential distraction of DNA's management and dilution of Roche's ownership continue to make such a merger highly unlikely... ..BTK +1.8%. ..NYSE Adv/Dec 1874/1283. ..NASDAQ Adv/Dec 1693/1212. </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 +4, Nasdaq +8, S&P +2.66</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices improve their stance somewhat, as the Dow turns slightly positive and market internals still suggest a modestly upbeat sentiment... Advancers on the NYSE outpace decliners by 17 to 13 margin while advancing issues on the Nasdaq hold a 17 to 11 edge over declining issues... A 2-to-1 ratio of up to down volumes on both the Big Board and the Composite, however, underscores a more bullish bias... Meanwhile, the Dow, S&P and Nasdaq continue to trade well above initial support levels but modest buying interest have not been enough to push the major averages through resistance levels of 10609, 1213 and 2095, respectively... ..NYSE Adv/Dec 1773/1350. ..NASDAQ Adv/Dec 1712/1180. </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 -5, Nasdaq +6, S&P +1.45</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices spike lower following a disappointing read on regional manufacturing activity... At the top of the hour, the June Philadelphia Fed index checked in at -2.2, well below expectations of 10.0 and failing to add evidence that manufacturing is accelerating... Even though the very mixed read from the abutting regions of NY (Empire Index) and Philadelphia don't provide a consistent read for the national ISM figure, the first negative reading on the Philly Fed in roughly two years has taken some steam out of the market's already tepid efforts... Perhaps preventing the market from slipping even further, however, has been a rebound in Treasurys, as the 10-yr note has inched up 2 ticks in response to the weaker than expected data, knocking the benchmark yield down to 4.08%... ..NYSE Adv/Dec 1840/1279. ..NASDAQ Adv/Dec 1622/1195. </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 +20, Nasdaq +11, S&P +3.84</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market holds onto modest gains midday amid spirited industry leadership and encouraging economic data... May housing starts rose a modest 0.2% to 2.009 units (consensus 2.050 mln), but marked the fourth time in five months that starts have surpassed the 2.0 mln annual rate... May building permits also missed forecasts, falling 4.6% to 2.050 mln (consensus 2.106 mln) and below April's 22-year high of 2.148 mln, but were still above the level of starts, suggesting that starts will remain at high levels in the months ahead... Also, weekly jobless claims rose a modest 1K to 333K (consensus 330K), marking the fifth straight week the data have been in the narrow range of 330-335K... Meanwhile, of the seven economic sectors trading higher, the Materials sector has led the charge amid solid momentum in steel, gold and aluminum while upside Q2 guidance from Potash Corp. (POT 103.81 +7.47) has provided a boost to the nonmetallic mineral mining group... Energy has also been among the best performing sectors, benefiting from higher oil prices, while leadership in Semiconductor and Hardware have helped Technology post a respectable gain... Providing a lift to chip stocks has been Integrated Device Technology's (IDTI 11.81 -0.72) proposal to acquire Integrated Circuit Systems (ICST 22.15 +2.41) for $1.7 bln as well as Banc of America's upgrade on the analog chip sector to Overweight from Neutral... Consumer Discretionary has also traded higher, as a surge in Homebuilding (+1.1%) offsets a 2.7% decline in General Motors (GM 35.37 -0.97), which warned the UAW it may reduce health benefits... Financial has also been an influential leader to the upside, getting a lift from widespread gains in Brokerage... Even though Goldman Sachs' (GS 101.65 +2.46) Q2 earnings missed analysts' expectations by $0.19, many analysts had expected profits to decline for the first time in about three years and have since made positive comments about Goldman's outlook... The other interest-rate sensitive sector - Utilities - however, has been the worst performing sector as yields on the benchmark 10-year note (-3/32) have climbed (4.11%) in six of the last seven sessions ahead of the Philly Fed data and valuation concerns spark consolidation in several utility stocks trading near 52-week highs... Consumer Staples has also been under pressure, losing some ground after CSFB downgraded the tobacco sector to Neutral... ..DJTA +0.7%. ..DJUA -0.8%. ..SOX +0.7%. ..DOT +0.4%. ..XOI +0.8%. ..BTK +1.7%. ..Nasdaq 100 +0.5%. ..S&P Midcap 400 +0.5%. ..Russell 2000 +0.5%. ..NYSE Adv/Dec 1875/1197. ..NASDAQ Adv/Dec 1674/1108. </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 +11, Nasdaq +8, S&P +2.76</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Indices back off their best levels, as the Dow clings to modest gains... Providing much of the buying support, or roughly 11 points of the blue chip index's move to the upside, has been a 2.2% surge in shares of Alcoa (AA 28.17 +0.61) coupled with solid gains from the likes of HON (+1.0%), DD (+0.9%) and MMM (+0.9%)... Preventing a stronger performance, however, has been a 3.0% sell-off in shares of General Motors (GM 35.24 -1.10), which has warned the UAW it may reduce health benefits for UAW retirees by as much as $2.0 bln over two years unless the union agrees to cost-cutting concessions before contract expiration in 2007... Separately, the June Philadelphia Fed Index (consensus 10.0) will be released at 12:00 ET... ..NYSE Adv/Dec 1842/1162. ..NASDAQ Adv/Dec 1579/1143. </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 +21, Nasdaq +11, S&P +4.23</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Renewed buying interest, spearheaded by leadership in financial, lifts the major averages to session highs... In focus all week, amid better than expected earnings from Lehman Brothers (LEH 96.59 +1.15) and Bear Stearns (BSC 102.73 +1.39) as well as a Q2 profit warning from Morgan Stanley (MWD 51.88 +1.27), the financial sector has again made headlines following Goldman Sachs' (GS 101.19 +2.00) Q2 report... However, even though Goldman's Q2 earnings missed analysts' expectations by $0.19, the stock has surged 2.0%... While Goldman has attributed its quarterly miss to "challenging market conditions," the investment bank has stated that the economic outlook remains favorable, its client franchise remains broad and deep, and that it retains a leadership position in critical businesses... It appears investors have also taken into account the fact that many analysts expected Goldman, given its larger exposure to trading, to report its first decline in quarterly profit in about three years... ..NYSE Adv/Dec 1779/1114. ..NASDAQ Adv/Dec 1581/1068. </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 -2, Nasdaq +5, S&P +1.82</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Equities still fluctuate around the unchanged mark as investors find few catalysts to more aggressively move the indices in either direction... One such piece of news having minimal impact on the market has been the latest read on initial claims... Jobless benefits rose a statistically insignificant 1K to 333K, marking the fifth straight week the data have been in the narrow range of 330-335K, while the steady trend in claims remains consistent with the 180K average gain in nonfarm payrolls recorded so far in 2005... ..NYSE Adv/Dec 1551/1252. ..NASDAQ Adv/Dec 1379/1132. </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 -17, Nasdaq +5, S&P +0.74</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Major indices still trade in split fashion as the bulk of sector leadership remains mixed... The Materials sector has again paced early action to the upside, amid continued momentum in steel stocks, strength in diversified chemicals and upside Q2 guidance from Potash Corp. (POT 103.81 +7.47)... Technology has also traded higher, getting a boost from Semiconductor and Hardware, while Energy has extended yesterday's gains as oil prices continue to climb... Interest-rate sensitive areas like Financial and Utilities, however, have been unable to shrug off rising bond yields while Consumer Staples has been under pressure after CSFB downgraded the tobacco sector to Neutral... ..NYSE Adv/Dec 1242/1289. ..NASDAQ Adv/Dec 1331/997. </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 -11, Nasdaq +4, S&P +0.80</TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Market opens in lackluster fashion, as investors digest mixed economic data... May housing starts were up a fractional 0.2% to a 2.009 annual rate, slightly below forecasts of 2.050 mln, but marked the fourth time in five months that starts have surpassed the 2.0 mln annual rate... Another report under the microscope that has so far stalled early follow-through buying interest in homebuilding stocks (-0.2%) has been May building permits, which fell 4.6% to 2.050 mln (consensus 2.106 mln) but checked in above the level of starts, as has been the case in recent months... ..NYSE Adv/Dec /. ..NASDAQ Adv/Dec /. </TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>09:15 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: +1.5. Nasdaq futures vs fair value: +1.5. </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: +1.4. Nasdaq futures vs fair value: +1.5. Still shaping up to be a modestly higher start for the cash market... Meanwhile, Financial should be in focus after Goldman Sachs (GS) missed analysts' Q2 earnings forecasts for the first time in nine quarters... Autos should also garner attention following an upgrade on Ford Motor (F) at Deutsche Bank and reports that GM has warned the UAW it may reduce health benefits for retirees unless the union agrees to cost-cutting concessions</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: +1.0. Nasdaq futures vs fair value: +1.5. Futures trade holds relatively steady following economic data, still indicating a slightly higher open for the indices... May housing starts rose 0.2% to 2.009 mln units, slightly below expectations of 2.050 mln, while May building permits fell 4.6% to 2.050 mln units and initial claims rose 1K to 333K, relatively matching expectations... Bonds have also held relatively steady, as the 10-yr note is off 5 ticks to yield 4.11% </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: +2.3. Nasdaq futures vs fair value: +3.5. Futures market versus fair value suggesting a higher open for the cash market amid new M&A activity and ahead of key economic data... Pfizer (PFE) plans to buy Vicuron Pharmaceuticals (MICU) for $1.9 bln in cash while Integrated Device Technology (IDTI) has agreed to acquire Integrated Circuit Systems (ICST) for $1.7 bln in cash and stock... At 8:30 ET, initial claims (consensus 330K), May housing starts (consensus 2050K) and May building permits (consensus 2106K)</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:27 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] FTSE...5039.30...+19.80...+0.4%. DAX...4566.96...+18.54...+0.4%.</TD></TR><TR><TD height=14></TD></TR><TR><TD class=st-Time vAlign=baseline noWrap>06:27 ET </TD><TD class=storyTitle vAlign=top>Market is Closed </TD></TR><TR><TD></TD><TD class=st-Art>[BRIEFING.COM] Nikkei...11416.38...+0.50...0%. Hang Seng...13833.53...-80.77...-0.6%.</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 +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 a possible 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 a June NY Empire State Index reading of 11.7 (up 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 - and helped improve sentiment as oil prices consolidated and late-day losses were pared in the Treasury market... Crude oil futures 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, but closed up 1.0% at $55.57/bbl (+$0.57)... 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 (1.2111) 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 2/32 to yield 4.11%... Even though weakness in the Treasury market lifted yields on the 10-year note to as much as 4.14% intraday, the Financial sector 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 regarding overblown inventory concerns at Apple Computer (AAPL 37.05 +1.05), boosted PC growth forecasts from Smith Barney and a turnaround in Semiconductor lent support... Telecom Services also showed relative strength after a large MCI Inc.(MCIP 25.70 +0.21) shareholder - Deephaven Capital Management - said they would fight Verizon Communications' (VZ 35.16 +0.15) proposed $8.6 bln acquisition of MCI... 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 will 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></TBODY></TABLE>
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