What Is Rule 51 And How Does It Affect You?

Stocks are slightly higher this last trading day of
2004.

If you’re wondering why the market is open today, it’s thanks to NYSE Rule
51, which states that the when a holiday occurs on a holiday on Saturday, the
market is closed on Friday, unless it’s the end of a monthly or yearly
accounting period. Today obviously closes out the year. And there you have it.

Eli Lilly
(
LLY |
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PowerRating) is lower after internal documents indicate
Prozac may be linked to aggressive behavior. The FDA is reviewing the documents,
which disappeared after a 1994 civil suit against the company. LLY is 56.81,
down 1.20.

The FDA approved Pfizer’s
(
PFE |
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PowerRating) Lyrica for treatment of Neuropathic
pain.

Boeing
(
BA |
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PowerRating) said Vietnam Air will buy 4 7E7 Dreamliners for a price
of $500 million. Earlier this week, Continental Airlines ordered 10
planes.

In a survey of traders, these were the top trading stories in 2004:

1. the election

2. China/commodities

3. weak dollar

4. too many hedge funds

5. lack of volatility

6. Eliot Spitzer

7. growth of ETFs/program trading

Two other big stories of 2004 were 1) Oil, which rose 33.7%; in November it closed
over $55. 2) The dollar fell 8% vs the euro. The Yen rose 4.4% vs the dollar. In
2003, the dollar fell 20%.

2004 Index Performance

Transports     +27%

Utilities          +26%

Russell 2000  +17%

S&P 500        +9%

Nasdaq          +9%

Dow               +4%

2004 World Index Performance

Great Britain    +7.5%

France            +7.4%

Germany         +7.3%

Japan             
+7.6%

Mexico            +47.5%

Strong sectors are:  Oil Services
(
OSX.X |
Quote |
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PowerRating) +0.41%,
Semis
(
SOX.X |
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PowerRating) +0.41%, Brokers
(
XBD.X |
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PowerRating) +0.34%

Weak sectors are:  Airlines
(
XAL.X |
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PowerRating) -0.64% Biotech
(
BTK.X |
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News |
PowerRating) -0.39%.

 

Brice Wightman