Quote of the Day

"Rule No. 1: Never Lose Money. Rule No. 2: Never forget Rule No. 1." -- Warren Buffet

Morning News of Note:

• G: Judge Orders Gillette To Cease Campaign Of Hair-Raising Ads Gillette Co. must cease advertising its vibrating M3Power razor as being capable of raising hairs so that they can be sliced more effectively, a federal judge ruled. Rival razor maker Energizer Holdings Inc. had sought a preliminary injunction in U.S. District Court in Connecticut that would force Gillette to change some of its advertising and promotional materials. U.S. District Judge Janet C. Hall agreed in part to Energizer's request, saying that the Boston company would need to stop claiming that the M3Power could "change the angle of hair in relation to the skin" or "extend or lengthen hair" in a significant way. (Full Story) WSJ
• Wireless Households: Cutting the Phone Cord Isn't as Popular as Once Predicted Two years ago, when Frank Roberts moved into a new home in Somerville, Mass., he figured his family no longer would need a traditional fixed-line phone. He thought the cellphones he and his wife used all the time would be more than sufficient. He guessed wrong. The couple, who have an 18-month-old son, quickly ran over their monthly allotment of cellphone minutes. Worse, their grandparents could never understand them when they called, because of echoes and choppy connections on the cellular network. (Full Story) WSJ
• EBAY SHOP: EBay Agrees to Purchase Shopping.com EBay, the online marketplace, said on Wednesday that it had agreed to buy Shopping.com, an online comparison shopping site, for $620 million. The move comes amid a slowdown in eBay's revenue growth, especially in the United States and is seen as a way for the company to increase traffic and sales on its site. EBay said it would pay $21 a share for Shopping.com, a 20 percent premium to its closing price of $17.44. (Full Story) NY Times
• Geopolitical Summary: President Bush will nominate Rep Christopher Cox (R, CA) as Chairman to SEC replacing Donaldson (AP)... Blair urged not to scrap EU Constitution vote after the Netherlands and France rejected the new framework (Bloomberg)... Commerce Secretary Gutierrez made his first trip to China saying that protection of intellectual property rights are "not up for negotiation"... Three separate bombings in Iraq kill at least 20, including top municipal council leader... Israel frees 398 Palestinians as part of cease-fire deal.
• US Economy: MNST May employment index 134 from 131 in Apr, new all time high; rising comser need for social services and child care

Market Commentary: The market rallied yesterday on the weak prices paid component of the ISM Survey as well as Dallas Fed Pres. Fisher's remarks on CNBC that the Fed is in the "8th inning" of this rate hike cycle. I still have some long exposure to the market, but not in a meaningful way. I would like to see us work off the current overbought condition a little more. But I continue to scan for breakouts, which seem to be popping up more and more. Happy Trading--