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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was also slightly better as low interest rates helped fixed income trading.

General Motors
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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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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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$HMO.X |
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Homebuilders
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Weak sectors were:   Gold
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-1.73%    Software
(
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 Semis
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Pier One
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Cigna
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CI |
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Target
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forecast.

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

GE Commercial Aviation ordered 20 Boeing
(
BA |
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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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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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vaccine.

Sirius
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