IPO Update: This Brand Name Is Coming To Market Soon

Stocks were higher after wholesale prices fell to a
level not seen in two years.
The PPI fell -0.6%, more than
expected. Core PPI rose 0.1%, which was slightly weaker than expected. 
Energy prices
fell 3.5%, the biggest drop since April 2003. Retail sales
for May fell -0.5%; ex-auto, -0.2%. U.S. chain store sales rose 0.6% last
week compared with a 0.4% gain the prior week. Warmer weather in the Eastern
part of the country is cited as a reason.

The S&P has been stuck near 1200 on light volume and in a trading range for
some time.

Lehman Bros.
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reported $2.26 for Q2, beating by 0.03. Revenue
was also slightly better as low interest rates helped fixed income trading.

General Motors
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gave the UAW a deadline of the end of the month
on healthcare concessions. GM gained 4%.

Susquehanna sees a flat Q2 (“not a blow-out quarter”) for Google
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but maintained a positive outlook longer-term.

Best Buy
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beat for Q1–reporting 0.51 vs a 0.30 estimate–and
raised 2006 guidance. Profits jumped 49%.

S&P downgraded Northwest Airlines’ long-term debt to CCC+ from B and
its short-term debt to C from B-3..

OPEC ministers are gathering in Vienna for their meeting Wednesday.
OPEC President Al-Sabah said the cartel must work to drive high oil prices to a
“more reasonable” level, saying “Whenever it’s over $50, we have to react.”
Iranian Oil Minister Zanganeh said he was concerned about the high price of oil,
but feared that OPEC could do nothing about it. OPEC–already operating above
quotas–is expected to increase production by 500K barrels this week. Oil is at
a 7-week high. OPEC produces 40% of the world’s crude. The cartel anticipates an
additional 1.5 million barrel per day demand in Q4.

Premium Standard Farms (PORK) debuted today in its IPO. The company is
the #6 pork producer in the US. It priced at $12.50, the low end of a revised
range; the initial range was $15-$17. In other IPO news, 2005 has been a rough
year. Of the 71 priced this year, 23 were priced below the range. The average
IPO is down 1.2% for the year, in-line with the S&P 500. Finally, Hertz
filed for a $100 million IPO. Hertz–a division of Ford–earned $493 million
pretax in 2004. Ford–which first acquired a stake in Hertz in 1987–will divest
its remaining equity ownership in the company after the IPO. Proposed symbol:
NYSE: HTZ.

Strong sectors were:   Retail
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+1.89%    Healthcare Providers
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+1.27%   
Homebuilders

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+1.36%

      

Weak sectors were:   Gold
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-1.73%    Software
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-0.45%   
 Semis

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-0.48% 

Dow +25.32 10,547.88
Nasdaq +0.07 2069.03
S&P 500 +3.13 1203.95

The dollar was +0.31 at
89.28

Crude Oil was -0.85 at
55.97

Gold was +0.20 at 426.50

ce=”Arial” size=”2″ face=”Arial”>Volume was 1.17 billion on the NYSE and
1.42 billion on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 1991 Up Vol 960
Declining 1270 Down Vol 526
1.56 1.82
Nasdaq
Advancing 1657 Up Vol 498
Declining 1351 Down Vol 781
1.22 1.56

Stocks in the News

Pier One
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missed by a penny and warned of a possible Q2 loss.

Cigna
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affirmed its 2005 forecast.

Target
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said June earnings should be at the high end of the
forecast.

Blackstone will acquire Wyndham in a cash deal worth $3.24
billion.

GE Commercial Aviation ordered 20 Boeing
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737s. Indian carrier
Jet Airways also ordered 20 planes, making a total of 40 planes ordered so far
from the company at the Paris Air Show.

Mylan Labs
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announced a $1.25 billion stock buyback. The
company also boosted guidance and doubled its dividend to 0.24.

IBM will open a fifth software development center in India and plans
to hire 1000 programmers by year-end.

Vical
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received FDA orphan drug designation for its DNA
vaccine.

Sirius
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signed a deal to offer its programming to Sprint.

Brice Wightman