Greenspan: No Housing Bubble, Plus, China Shifts Policy

Stocks were mixed on option expiration Friday as the
market digested recent gains. A broker call weighed on the Dow after
Smith Barney recommended switching out of 3M and into GE. The Nasdaq made it six
up-days in a row–up 4% during the rally. The Dow and S&P snapped multi-day
rallies. It was, however, the best week for both indices in six months.

Homebuilders were hit after Greenspan said the market is
showing some signs of froth, but doesn’t see a housing bubble. At the Economic
Club of New York, he said: “We don’t perceive that there is a national bubble
but it’s hard not to see … that there are a lot of local bubbles.”

China is raising the tariff on textile exports–1 yuan per unit (about
0.12). This means Chinese companies would have to pay more to export to the
U.S.–and that American consumers will ultimately pay more. retailers This could
be a negative for companies like Wal-Mart
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as well as Nike
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Jones
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US Air and
America West are merging. The combined company–creating the nation’s
sixth largest carrier–will be called US Airways and run by America West’s’
Douglas Parker.

Gap Inc.
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Ford’s debt is still investment grade, per Fitch.

Sharper Image (SHRP)
beat by a penny but was light on revenues. The company guided lower and closed
down 10%.

OPEC said it may decrease output if global inventories rise too fast.

The dollar traded to a 7-month high vs. the euro.

Fund flows: last week saw the biggest outflows since January 2000; energy was
the biggest loser.

The Star Wars first day ticket sales topped $50 million.

Strong sectors were:  Semis
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Biotech
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+0.42%

Weak sectors were:  Gold
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Chemicals
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-0.61%  

Autodesk (ADSK)
beat by 0.2 and guided higher.

Time Warner
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Carmax
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Maytag is going private–being acquired by Ripplewood Holdings for
$1.25 billion or $14/share

Marvell (MRVL)
beat by 0.02.

Brocade (BRCD)
was in-line, ex-items.