Up $12 After Hours!

Stocks were sharply higher–with the Dow up by
triple digits–on a host of good earnings, guidance and good economic data.
The Dow had its best day in almost two years. Not only were earnings strong, the
tone of the guidance was strong, and no negative economic news came out to spoil
the party. Interestingly, economic news that is not normally
market-moving–moved the market. The Dow gained 2%, the Nasdaq 2.5% and he
Transports gained 3.46%.

Jobless claims for the week of 4/16 fell 26,000 to 296,000, the consensus was
325K. It was the largest one-week drop in three years. The 4-week moving average
fell 8500 to 330,250. Leading indicators fro March fell 0.4%. The Philly Fed was
stronger than expected, which spiked the market at Noon ET.

In remarks before the Senate Budget Committee, Greenspan said stagflation was
unlikely.

After the close, Google
(
GOOG |
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PowerRating) reported 1.12, beating by 0.20. In
the same period last year the company earned 0.24. After hours, the stock traded
to $215. Amgen
(
AMGN |
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PowerRating) missed by a penny at 0.67. Revenue was $2.7
billion. The company increased its full-year guidance.

The NYSE and Archipelago are merging. The new company, called the NYSE
Group–will be for-profit and will be publicly traded. 70% of the company
will be held by NYSE members; 30% will be held by Archipelago. NYSE seat
holders–numbering 1366–will receive a cash payout of $300,000. Some traders
are wondering about the NYSE valuation in the deal. NYSE Group plans to move
into derivatives and other products. The deal–which requires shareholder and
regulatory approval–is expected to close in Q4.  NYSE head John Thain said
the deal would not mean the end of the auction system. The debate over an
earlier NYSE open may get put on the back burner.

A NYSE seat sold for $1.8 million today. In January, a seat sold for $975,
000. Bid: $2.2 million. Ask $5 million.

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
(
MOT |
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PowerRating) beat by 0.03 at 0.22, net income rose 14% to $692
million. 

Qualcomm
(
QCOM |
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McDonald’s
(
MCD |
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PowerRating) beat by 0.03; revenues, at $4.8 billion, beat
estimates.

Friday Earnings

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

Strong sectors were: Airlines
(
$XAL.X |
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PowerRating) +3.68%  
Internet
(
$GIN.X |
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PowerRating) +3.38%   Computer Tech
(
$XCI.X |
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PowerRating)
+3.35%

Weak sectors were: Gold
(
$XAU.X$ |
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PowerRating)
-1.08%      

Stocks in the News

Merck
(
MRK |
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PowerRating) beat estimates and guided in-line. Profits were lower due
to the Vioxx recall.

Nokia
(
NOK |
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Schering Plough
(
SGP |
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PowerRating) posted better-than-expected results.

Ingersoll Rand
(
IR |
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PowerRating) beat by 0.10 and lifted its 2005 outlook.

United Parcel Service
(
UPS |
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Yum Brands
(
YUM |
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PowerRating) beat by a penny and guided lower

Ryland
(
RYL |
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PowerRating) beat by 0.02 and guided lower.