Holding the market up were the Consumer Discretionary (XLY +0.38%) and Financials (XLF +0.30%) sectors. The worst hit sectors were Energy (XLE -2.5%) and Basic Materials (XLB -1.3%).

On the macro front, the ICSC reported a 1.7% increase in comparable store sales last week, largely due to spending of the income tax rebate checks. At 2:00pm ET today, the May Treasury Budget will be reported. The Consensus Forecast is for a deficit of -$155.0 billion. Over the past 10 years, Econoday points out that the average deficit for May has been $47.4 billion, but we are likely to see a surge in the deficit due to the mailing of income tax rebate checks.

Also, the US trade balance in April widened sharply to $60.90 billion as imports (+4.5%) rose faster than exports (+3.3%). This was primarily due to a run up in oil prices. The Consensus Forecast had been for a $59.5 billion deficit. There March deficit was revised to $56.5 billion deficit.

In corporate M&A news, Japan's Daiichi Sankyo announced the agreement to purchase 50.1% of India's Ranbaxy Laboratories for $4.6 billion. XTO Energy (XTO) will buy Hunt Petroleum for $2.6 billion in cash and 23.5 million shares of XTO stock, in a deal worth $4.19 billion.

Hawkish talk from the Fed and from Treasury Secretary Paulson firmed the US Dollar again. That led to profit-taking in the oil and gold commodities and equities. The Oil stocks ($XOI -2.6%) and Goldminers ($XAU -4.5%) sagged. For the commodities, $WTIC Crude Oil futures dropped -$3.04/bbl (-2.26%) to 131.31, while $GOLD futures closed down -$26.90 (-3.00%) to 871.20.

US Treasury selling accelerated as the 10-year yield closed up to 4.099%, and the 30-year T-Bond sank -0.86% to 113.95.

Cara 100 winners on the day were KO +3.8% and DIS +2.0%--both DJIA components, which says to me that the DJIA is being pushed. Also higher were SBUX and OXPS each up +1.8%.

Losers were commodity related: CCJ -7.8%, ABX -6.8% and GG -6.6%.

This morning, the $USD futures are weaker with the Euro futures up to 1.5511 and precious metal prices are modestly higher: at 8:31am ET, the Gold, Palladium, Platinum and Silver spot prices are: 877.9, 425, 2019, and 16.70 respectively.

Crude oil prices are way up again (+2.415/bbl) to 133.725.

The equity futures are up +32 to 12308. Overnight, in Asia-Pacific equity markets, Australia gained +0.32% to 5561.9, Shanghai lost -1.57% to 3024.24, Hong Kong was down -0.21% to 23327.6, while India’s Sensex gained +1.99% to 15185.32 and the Japanese Nikkei was up +1.16% to 14183.5.

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Comments & Outlook

Inflation in Japan hit a 27 year high. Inflation has become an issue everywhere in the world, while economic slowdown doesn’t appear to be as bad as anticipated. That is not a good mix for lower interest rates. The consensus is growing that rates have bottomed and may rise later this year.

Wal-Mart (WMT) traded at a 52-week high of $59.95, closing at $59.78. We issued a Sell Alert on 2008-06-06 at $58.37. The stock should have been bought last September into weakness in the low 40’s and sold this week into strength in the high 50’s.

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Links & Charts

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International Economics Review

US Economic Calendar.

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Knobias Cara100 Tables

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Cara 100 Daily RSI-7 Charts

At least one RSI value >70:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
PBR	66.29	92.17	58.14	39.13
GGB	49.86	88.41	81.63	52.31
ATVI	33.80	85.45	89.55	54.46	Sell alert (trig. 1 days ago [on 2008-06-10 at $33.80, +0.00% chg], after a 1 day DZ)
ECA	91.04	84.16	65.58	49.42
WMT	59.78	80.92	80.74	67.17	Sell alert (trig. 3 days ago [on 2008-06-06 at $58.37, +2.42% chg], after a 1 day DZ)
SYT	61.85	79.99	59.36	45.77	Sell alert (trig. 3 days ago [on 2008-06-06 at $63.52, -2.63% chg], after a 1 day DZ)
SU	66.05	77.43	69.04	43.15
TT	46.49	76.65	65.62	56.92
RIMM	134.95	75.25	65.24	50.41
EXC	88.84	73.49	65.57	55.64
TS	63.23	72.85	78.47	57.91	Sell alert (trig. 1 days ago [on 2008-06-10 at $63.23, +0.00% chg], after a 3 day DZ)
PDA	56.45	71.70	53.56	31.09	Sell alert (trig. 7 days ago [on 2008-06-02 at $63.80, -11.52% chg], after a 3 day DZ)
STO	37.06	70.57	63.73	41.46
QCOM	47.42	68.07	70.26	49.75	Sell alert (trig. 8 days ago [on 2008-05-30 at $48.54, -2.31% chg], after a 1 day DZ)
DELL	23.60	52.83	75.64	64.62
DNA	74.35	48.96	56.47	73.53

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
BC	13.34	19.98	26.26	30.84	Buy alert (trig. 1 days ago [on 2008-06-10 at $13.34, +0.00% chg], after a 2 day AZ)
UBS	23.45	21.17	21.20	32.88	Buy alert (trig. 1 days ago [on 2008-06-10 at $23.45, +0.00% chg], after a 1 day AZ)
GOL	12.92	25.43	28.75	19.69	Accumulation Zone (for 1 days)
ERJ	31.90	25.51	16.66	12.38	Accumulation Zone (for 6 days)
BDK	61.34	26.24	29.57	32.80
BMY	20.11	26.89	29.37	19.04	Accumulation Zone (for 1 days)
WFMI	28.45	28.43	32.44	41.85
DB	95.85	28.67	19.69	11.48	Accumulation Zone (for 1 days)
SBUX	17.84	28.74	53.51	53.74
GE	30.33	32.34	28.40	40.89
GSK	41.72	32.66	36.26	23.47
GFI	11.94	32.87	29.38	20.78
SNDK	25.50	33.08	39.82	26.13
KB	59.11	33.30	36.45	26.49
IBN	34.17	33.59	29.22	25.17
WHR	69.12	35.39	26.43	33.65
NOK	25.80	35.55	26.05	23.54
BA	73.67	35.83	31.24	19.09
HDB	83.71	38.48	28.87	23.50
ERTS	46.16	39.70	34.51	25.04
ABV	64.92	42.00	26.93	22.92
UTX	67.08	42.41	30.42	26.38
BBBY	29.99	42.45	40.02	27.08
CHA	59.92	44.82	33.75	23.08
CCJ	37.44	45.69	46.80	29.39
CHL	69.15	47.40	31.91	22.89
HBC	81.78	49.62	45.74	27.15
TEF	80.55	49.72	31.27	21.71
VIP	30.96	54.78	42.57	26.45
RIO	35.25	62.12	41.84	24.45
BHP	80.64	63.42	49.05	27.78
ABB	30.40	67.24	54.84	23.73

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International Equity Markets Review

Europe

Here is the latest session data for the bourses of Europe.

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Here is the latest session data for the London stock exchange FTSE.

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Here is the latest session data for the German DAX.

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Here is the latest session data for the French CAC 40.

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Here is the latest session data for the Milan Italy stock exchange MIBTEL.

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Here is the latest session data for the Swiss market index.

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Asia-Pacific

Here is the latest session data for the Asia-Pacific stock exchanges.

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Here is the latest chart for the Japanese Nikkei 225 index.

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Here is the latest chart for the Singapore index .

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Here is the latest chart for the Shanghai Composite index .

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Here is the latest chart for the Hong Kong Hang Seng index .

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Here is the latest chart for the India BSE 30 index .

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Here is the latest chart for the Australian All Ordinaries index .

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US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

Table 14: Dow 30 List

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
AA	42.72	0.55	1.30%	7.88%	5.79%	2.67%	18.24%	19.87%	12.87%	7.72%
MCD	59.77	0.46	0.78%	3.84%	2.86%	-1.81%	2.87%	11.10%	-3.44%	16.26%
WMT	59.78	0.21	0.35%	3.48%	5.99%	3.03%	27.46%	22.37%	20.94%	19.37%
HPQ	47.57	-0.06	-0.13%	2.88%	4.09%	1.97%	-4.50%	1.84%	-8.47%	3.91%
KO	58.01	2.15	3.85%	2.85%	-0.99%	2.85%	-5.04%	-1.11%	-8.31%	12.27%
XOM	87.89	-1.18	-1.32%	2.54%	-2.13%	-1.46%	-6.01%	6.59%	-4.50%	6.30%
MSFT	27.89	0.18	0.65%	2.12%	-1.93%	-7.00%	-20.81%	-0.57%	-19.76%	-7.19%
DIS	33.83	0.65	1.96%	1.96%	0.56%	-2.70%	6.25%	11.06%	4.57%	-1.08%
PG	66.66	0.59	0.89%	1.91%	2.44%	2.00%	-7.81%	1.37%	-10.32%	5.69%
CVX	98.78	-2.42	-2.39%	0.94%	-0.80%	1.46%	5.69%	16.58%	7.70%	22.42%
VZ	37.52	-0.42	-1.11%	0.43%	0.37%	-1.42%	-13.17%	9.16%	-17.27%	-12.89%
AXP	44.35	0.24	0.54%	0.09%	-3.38%	-11.21%	-13.11%	10.76%	-22.98%	-29.65%
MMM	76.00	0.18	0.24%	-0.30%	-0.22%	-2.15%	-8.11%	0.69%	-12.38%	-11.57%
GE	30.33	0.27	0.90%	-0.43%	-0.23%	-6.39%	-17.49%	-4.32%	-18.93%	-18.73%
INTC	22.68	-0.08	-0.35%	-1.13%	-3.90%	-4.06%	-10.53%	12.72%	-18.36%	3.89%
HD	26.71	0.17	0.64%	-1.40%	-2.09%	-6.74%	2.30%	6.84%	-9.73%	-29.62%
IBM	125.94	0.08	0.06%	-1.49%	-1.08%	0.56%	20.30%	10.46%	15.13%	22.19%
JNJ	65.62	-0.01	-0.02%	-1.71%	0.72%	-1.63%	-0.44%	6.99%	-3.20%	5.62%
DD	45.72	-0.49	-1.06%	-1.97%	-2.72%	-7.79%	4.53%	3.42%	-4.13%	-10.58%
CAT	80.10	-0.71	-0.88%	-2.81%	-1.72%	-4.44%	13.41%	16.56%	4.60%	2.01%
UTX	67.08	-0.47	-0.70%	-3.84%	-5.25%	-10.04%	-10.81%	1.28%	-14.91%	-4.49%
T	37.22	-0.34	-0.91%	-4.02%	-4.15%	-4.83%	-9.22%	7.42%	-1.79%	-7.55%
GM