Monday Will Tell Us…
Bulls showed up to this abbreviated session
and stirred up a broad-based rally that lasted from start to close. The biggest
advancers were semiconductors, networking, Internet, computer technology, and
broker/dealers, as gold and silver was the only sector in the red.Â
Today’s rally was on
light volume due to the holiday, and will remain suspect until market players
return to action Monday.
The Dow Jones
Industrial Average
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$INDU |
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PowerRating) closed up 3.58% at 9379.85. The S&P 500
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$SPX |
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PowerRating) closed up 3.67% at 989.05. The Nasdaq
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$COMPQ |
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PowerRating) closed
up 4.93% at 1448.30.
U.S. Treasury
Bonds were down 1 ’02 at 102 ’21.
In economic news, the Labor Department reported that the
unemployment rate moved up to 5.9% for last month vs. May’s reading of 5.8%.
Market breadth
was positive, with NYSE advancing issues over declining issues by a ratio of
4.08, and up volume over down volume by a 15.13 ratio. Nasdaq advancing issues
over declining issues came in at 2.60, and up volume beat down volume by a 9.76
ratio. The
VIX was down 3.22 at 30.09. The
TRIN was down 0.44 at 0.29.
The top sectors
of the day were the Semiconductor Index
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$SOX.X |
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PowerRating), up 8.99% at
395.87, and the Networking Index
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$NWX.X |
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PowerRating), up 5.49% at 172.52.
The losing
sector of the day was the Gold and Silver Index
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$XAU.X |
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PowerRating), down
1.34% at 69..62.
Communications services company Qwest Communications
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Q |
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PowerRating), up 7.05%
at 1.82, is being reported by the Wall Street Journal to be under
investigation by the SEC over accounting practices, though the company said it
was not aware of any investigation at the time.
Merrill Lynch downgraded three
satellite communications stocks: Sirius Satellite (SIRI),
down 16.38% at 3.01, has been downgraded to near-term “reduce/sell” from
near-term “neutral”, and XM Satellite Radio (XMSR),
down 7.55% at 5.75, and Garmin Ltd (GRMN),
down 1.58% at 19.93, have been downgraded to near-term “neutral” from near-term
“buy”.
Conglomerate General Electric (GE),
up 6.41% at 29.69, received comments of caution from Goldman Sachs which claim
demand for industrial capital goods is weak and sees downward pressure on
earnings for the second half of the year.
Software company JDA Software (JDAS),
down 44.07% at 15.10, warned that its earnings will likely come in between 17
cents and 18 cents a share vs. the Multex consensus of 21 cents a share.
Broadcasting and cable TV company
EchoStar Communications (DISH),
up 12.15% at 17.99, announced that a federal court partially ruled in its favor
in a patent suit filed by Gemstar-TV Guide International Inc. (GMST),
up 3.00% at 5.15, over SuperGuide Corp.