NYSE Merger!

Stocks were lower in a failed rally attempt, sending
the Dow down in triple digits–the 4th 100-point plus loss in the Dow
in six sessions. Concerns over higher inflation and a slower economy trumped
good earnings reports. The Dow bounced at the close at the 10,000 level and
closed at the lows for the year, as did the S&P 500. The SPX failed twice at
200-day moving average in as many days. Year-to-date, the Dow is off 7.1% and
the Nasdaq is down 12%.

The CPI for March rose +0.6%; core was +0.4%, double the expectations. Crude
oil and gas had drawdowns this past week. Crude inventories fell by 1.8 million
barrels and gas inventories fell by 1.5 million barrels. Both were expected to
show a build.

The market took a turn for the worse after the release of the Beige Book at 2
PM ET. The report mentioned price pressures.

The NYSE and Archipelago are merging; the new company will be a
for-profit public company called NYSE Group. Archipelago owners will own
30% of the new company, while NYSE owners will own 70%.

After the close, eBay EBAY beat by 0.02, reporting 0.20 pro-forma
(0.19 GAAP); revenues were in-line. The company guided slightly higher for Q2. 
Motorola
(
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million.  Qualcomm
(
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for ’05.  

Trader talk: can Q1 earnings overcome some inflation? IPO activity has been
weak and pricings are lower.

Intel
(
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expected at $9.4 billion. Net income rose 25%. The company raised its cap-ex
guidance.

Yahoo
(
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profit more than doubled; online ad revenue rose to more than $1 billion.

Google
(
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Thursday

GOOG (0.92), T (0.59)  MCD (0.43)

Friday

EK (0.33), HAL (0.44), IP (0.33), MYG (0.20)

Two-thirds of firms that have provided Q2 guidance have guided lower.
Thompson Financial says that Q1 earnings growth could be 11-12%.

Weak sectors were:  Brokers
(
$XBD.X |
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PowerRating) -2.73%   
Healthcare Providers
(
$HMO.X$ |
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-2.28%   Homebuilders
(
$HGX.X |
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PowerRating) -2.43% 

Stocks in the News

Cymer
(
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St. Jude
(
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