3 Days, 300 Points, Plus, FDA Approval After The Close

Stocks rallied on tame inflation data and lower
crude oil. The major indices are traded to five-week highs. The Dow
made it 300+ points in three days. It was the best 3-day move since the November
elections. The Nasdaq traded at its best
levels since mid-March. Year to date, the Dow is off 2.9% and the Nasdaq is off
6.7%. Oil sank to its lowest levels since February.

The CPI for April was 0.5%; ex-food/energy, unchanged.
Year over year, it rose 2.2%, a little less than expectations. Crude inventories
rose 4.3 million barrels, much more than expected, and the highest level since
March 1999. Gas inventories also rose more than expected, +1.1 million barrels.

After the bell, Teva Pharmaceutical’s
(
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Biaxin was granted final approval by the FDA. Men’s Wearhouse
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beat by 0.16, guided higher and announced a 3:2 stock split. 

Hewlett Packard
(HPQ)
beat by a penny and revenues ($21.6 billion) also beat slightly. The company
lowered Q3 guidance.

Abercrombie & Fitch (ANF)
beat by 0.03. Q1 profit rose 38%.

Applied Materials
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down and lowered Q3. Profits fell 18% and new orders for the three months ending
May 1 fell 30%. CIBC downgraded the stock.

Yahoo
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allows free worldwide PC-to-PC calls without a phone.

Merrill Lynch upgraded technology to marketweight from underweight.

Pimco’s Bill Gross sees 10-year rates between 3 – 4.5% over the next
five years.

Federal Reserve Board Governor Ed Gramlich is resigning effective
August 31. Greenspan is planning to leave in January.

Strong sectors were:  Airlines 
(
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Homebuilders
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+2.50%  

Weak sectors were:   Oil Services  
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-0.66%   Insurance
(
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Nordstrom
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Intel
(
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Boise Cascade slashed the price of its IPO and now sees $17-$19, down
from $24-$26.

Yum Brands’
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expecting between 2-4%.

Honeywell
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Ross Stores
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