The Market Today

The five-day rally came to an end. Alcoa’s (AA) lousy earnings weighed on the Dow as it slipped below 11000. This was the first down day of the year.
Once again, the energy sector led the market and most everything else was flat. The Energy Spyders (XLE) were up over 1%. A few other spyders were barely higher, but the non-energy sector had a rough day. The two-tiered market continues. We have energy, and everything else. The news out of Iran has been the latest catalyst for higher oil prices. I don’t see how it can last. As long as you steer clear of energy, you’ll have a good 2006.
Normally, when energy leads the market, the Buy List lags. Not today. This was a very good day for our Buy List. The S&P 500 dropped 0.04%, but we edged up 0.34%.
Of course, Home Depot (HD) did well for us. Also, Harley-Davidson (HDI) had a very nice day, and Golden West Financial (GDW) hit a new high.
By the way, one of our former Buy List stocks is now trading at a great price. Frontier Airlines (FRNT) fell all the way to $8.47 today. Last week, the company reported that its passenger count for December jumped by 12.8%, and passenger miles rose by 16.2%. The next earnings report will probably be pretty bad (the company has already lowered the bar for expectations), but I think the quarter after that could be very strong.
The big news from the tech sector came from Apple Computer (AAPL). The company unveiled its new computer with Intel’s (INTC) chips. The stock broke $80 a share today. Three years ago, you could have bought Apple for under $7. Apple will report next Wednesday, one day after Intel.
After the bell, Genentech (DNA) reported earnings that were inline with expectations. I was wrong. I thought they would easily beat the Street, but I was right that the stock would fall. Shares of DNA (love that symbol!) are trading lower after hours. Genetech was also named the best company to work for by Forbes.

Posted by on January 10th, 2006 at 5:43 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.