Here’s Why ‘5’ Years Are Important

Stocks were lower, with the Nasdaq just off a 3 1/2
year high and the SOX at its 200-day moving average.

Standard & Poor’s said that 1/2 the companies in the S&P 500 are
expected to raise their dividends in 2005. Among the likely candidates are: MMM,
ABT, CB, LOW, MCD and LLY.

The EIA reported that crude inventories fell by 800,000 barrels;
distillates fell by the same amount. Gasoline inventories rose 900,000.

Existing home sales for November rose a better-than-expected +2.7% to an
annual rate of 6.9 million units.

Seven insiders at Martha Stewart Living have sold 4 million shares
recently for $90 million; Martha herself sold about $8 million.

According to Peter Eliades in a CNBC interview, the fifth year of a decade is
usually up, and there has never been a down “5” year (a year ending with the
number 5) in the Dow. Also interesting is that in these “5” years, the Dow
usually makes its low in January.

Compare that with Investor’s Intelligence, which
reports that bulls are 62.9%–an 18-year high. Bears are 19.6%, the first time
since July the figure has been below 20. At the August lows, the AAII bearish
reading was 40%–now 27%.

bebe stores
(
BEBE |
Quote |
Chart |
News |
PowerRating)
is splitting 3:2 after the close.

Strong sectors were:  Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating)
+1.39%,
Semis

(
SOX.X |
Quote |
Chart |
News |
PowerRating)
+0.88%, Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating)
+0.64%.

Weak sectors were: Brokers
(
XBD.X |
Quote |
Chart |
News |
PowerRating)
-0.54%., Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating)

-0.42%, Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating)
-0.28%.

 

Dow -25.35 10,829.19
S&P 500 -0.09 1213.45
Nasdaq -0.19 2,177.00

The dollar was +0.24 at
80.92

Crude Oil was +1.98 at
43.64

Gold was -7.2 to 436.10

ce=”Arial” size=”2″ face=”Arial”>Volume was 926 million on the NYSE and
1.5 billion on the Nasdaq.

Market breadth was mixed.

NYSE Issues
Advancing 1896 Up Vol 500
Declining 1420 Down Vol 363
Ratio 1.33 1.37
Nasdaq
Advancing 1452 Up Vol 809
Declining 1676 Down Vol 655
Ratio 1.15 1.23

Stocks in the News

Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating)
had a new childhood leukemia drug, Clolar,
approved.

Boeing
(
BA |
Quote |
Chart |
News |
PowerRating)
may see some weakness on a report that China doesn’t
plan on approving new airline purchases next year, attempting to slow growth in
the aviation sector.

Wet Seal
(
WTSLA |
Quote |
Chart |
News |
PowerRating)
will close 150 (25%) underperforming stores and
lay off 2000 employees.

Lockheed Martin
(
LMT |
Quote |
Chart |
News |
PowerRating)
will be in focus as the Pentagon plans to
cut back the FA-22 fighter jet program.

Plato Learning
(
TUTR |
Quote |
Chart |
News |
PowerRating)
announced a $2.15 million agreement with
the Salt Lake City School District.

Kongzhong
(
KONG |
Quote |
Chart |
News |
PowerRating)
will invest $500,000 in eFriendsNet.

This Day in History

1862  bowling ball invented

1867  first telegraph ticker used by brokerage house 

1972  Life Magazine stopped weekly publication

Brice Wightman