RETURNS WEDS 4/20/05

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20APR05 G-$10.82 F-$10.50 C-$12.18 S-$13.72 I-$15.19

That is no change for the G, F & I Funds.No movement in I-fund ishard to believe because the EAFE fund went down 1.28% today.


The C-Fund lost $0.16 down 1.29% and S-Fund lost $0.18 also down 1.29%
 
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Dow, S&P 500 Hit 6-Month Lows



1 hour, 55 minutes ago[/i]


The blue-chip Dow average and the broad Standard & Poor's 500 sank on Wednesday to six-month lows as a jump in March consumer prices fanned fears of inflation and steeper interest-rate increases ahead.

Those inflation concerns overshadowed better-than-expected earnings from bellwether companies such as Caterpillar Inc. (NYSE:CAT - news) and Intel Corp. (Nasdaq:INTC - news).

The Dow tumbled to just a whisker above the 10,000 mark, closing at its lowest since Oct. 28, as stocks resumed a steep decline that started last week. The S&P 500 closed at its lowest since Nov. 2.

The Dow Jones industrial average (^DJI - news) was down 115.05 points, or 1.14 percent, to end at 10,012.36. The Standard & Poor's 500 Index (^SPX - news) was down 15.28 points, or 1.33 percent, to close at 1,137.50. The Nasdaq Composite Index (^IXIC - news) was down 18.60 points, or 0.96 percent, to finish at 1,913.76.

Late in the session, the Dow tumbled as low as 10,000.46. It has not fallen below the 10,000 level since October 2004. Its lifetime high was 11,750.28, reached in January 2000.

Concern about inflation "blindsided" the market, said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co.

"People were getting really hammered on the inflation side today, to the point where they started bailing in the end of the day," Pado said. "I think the earnings news will prevail in the long haul. But in the short term, people just got smacked around too much in the last few trading days and just didn't want to take any more."

The Standard & Poor's 500 Retail Index (^RLX - news) fell 1.73 percent, reflecting investors' worries that higher prices were keeping shoppers away. Apparel stocks slid, with Gap Inc. (NYSE:GPS - news) off 2.8 percent, or 60 cents, at $20.77, while home improvement retailer Home Depot (NYSE:HD - news) dropped 2.4 percent, or 86 cents, to $35.60.

About three stocks fell for every one that rose on the New York Stock Exchange, while declining stocks outnumbered advancing ones by about seven to three on the Nasdaq.

Overall, trading was heavy, with 1.85 billion shares changing hands on the New York Stock Exchange, above the 1.46 billion daily average for last year. About 2.10 billion shares were traded on Nasdaq, above the 1.81 billion daily average last year.

BIG NEWS FROM THE BIG BOARD

Wall Street got some news just before the closing bell that will change the landscape of trading. The New York Stock Exchange, known as the Big Board, announced it will merge with electronic market operator Archipelago Holdings Inc. (AX.P) in a $400 million transaction.

The deal will transform the NYSE, founded in 1792, into a publicly traded company and help it break into electronic trading -- the domain of Nasdaq, its arch rival.

After the closing bell, the shares of Motorola Inc. (NYSE:MOT - news) rose to $15.35 from its NYSE close at $14.93 after the world's second-largest maker of cell phones said it expected higher revenue, operating profit and market share during the current second quarter. Motorola's first-quarter earnings rose and beat analysts' forecasts.

Shares of eBay Inc. (Nasdaq:EBAY - news) advanced after hours to $33.22 on the Inet electronic brokerage network from its Nasdaq close at $33.11 after the Web marketplace reported a first-quarter net profit that beat Wall Street's expectations. Earlier in extended-hours trading, eBay stock rose 1 percent.

RISING CPI AND OIL PRICES

Soaring energy costs helped drive the U.S. Consumer Price Index up in March by 0.6 percent, the sharpest monthly gain since October. The core CPI, which excludes volatile food and energy costs, jumped 0.4 percent -- twice the gain expected by economists polled by Reuters. This was the sharpest monthly increase the core CPI in 2-1/2 years.

Federal Reserve Vice Chairman Roger Ferguson told reporters the U.S. central bank is wary of emerging price pressures.
The Fed's "beige book" of economic reports from its 12 regional Fed district banks cited growing unease over rising energy costs.
Oil prices weighed on the stock market, ending higher after a U.S. government report showed domestic commercial crude stockpiles fell last week. U.S. light crude for May delivery rose 15 cents to settle at $52.44 a barrel; the May contract expired at the close of trading.
Interest-rate-sensitive stocks such as banks fell. The Philadelphia KBW Bank Index(^BKX - news) lost 1.44 percent. Bank of America Corp.(NYSE:BAC - news) was down 70 cents at $44.23.
EARNINGS TAKE A BACK SEAT
The inflation fears outweighed a number of strong earnings reports from Dow components and other big companies.
Heavy equipment manufacturer Caterpillar, a Dow component, rose $3.09, or 3.6 percent, to $88.04 after it reported higher first-quarter results.
Intel Corp. (INTC.O) and Yahoo Inc. (Nasdaq:YHOO - news) both reported results after Tuesday's closing bell that beat Wall Street estimates. Intel edged up 3 cents to $22.66, while Yahoo gained $1.43, or 4.3 percent, to $34.65, both in Nasdaq trading.
But the biggest weight on the Dow average was International Business Machines Corp.(NYSE:IBM - news), which has not risen a single day so far this month. IBM's stock fell 4.6 percent, or $3.47, to $72.01, a 2-1/2-year low. During the regular session, IBM slid as low as $71.87.
 
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greg wrote:
20APR05 G-$10.82 F-$10.50 C-$12.18 S-$13.72 I-$15.19

That is no change for the G, F & I Funds.No movement in I-fund ishard to believe because the EAFE fund went down 1.28% today.



Itis surprisingthat the I Fund didn't budge today. However, the Nikkei is down about 2.3% as I write this, soI wouldn't be surprised if the "I"takes a hit tomorrow.

Of course, ifthe Dollar continues to fall it will counteract some of the hit. I'm 100% F Fundand was happy--and a little surprised--tosee thebond market hold steady today after the CPI numbers and Biege Book releases suggested inflationary concerns. Apparently the market doesn't thinkthe Fed is willing tofight inflationtoo aggressively right now. If thisholds true,and we don'tgetreally aggressive rate hikes, it should bode well for bonds and "anti-dollar" investments (international stocks, gold, etc.).

Remember, though--international stocks (especially EAFE-based) are strongly correlated with U.S. stocks. A declining dollarmay not be enough to sustain them if U.S. stocks continue to tank.

ST
 
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