The markets slowed worked higher through today's trading session and ahead of the long weekend. New US unemployment claims rose by 11,000, to 321,000 mostly inline with forecasts of 320,000. Kirk Kerkorian's made a 4.5 billion dollar offer for DaimlerChrysler (NYSE: DCX) lifting the auto sector.

The NYSE had volume of 2.3 billion shares with 1,993 shares advancing while 1,235 declined for a gain of 28.01 points to close at 9,426.57. On the NASDAQ, 1.5 billion shares traded, 1,680 advanced and 1,326 declined for a gain of 12.65 to 2,471.34.

Stocks moving today included: DaimlerChrysler (NYSE: DCX) which gained $3.73 (5%) to $84.80 on news that Kerkorian was offering $4.5 billion for Chrysler. Medicis Pharmaceutical Corporation (NYSE: MRX) moved $0.99 (3%) to $31.01. Arch Coal (NYSE: ACI) rose $1.56 (5%) to $33.93 as the coal sector rallied. Rackable Systems(NASDAQ: RACK) crashed $2.64 (-16%) to $14.24. after guiding lower.

In options there were 3.4 million puts and 4.4 million calls traded for a put/call open interest ratio of 0.76. Mirant (NYSE: MIR) saw heavy volume on the September 32.50 calls (MIRIZ) with over 50,000 contracts; the September 35 calls (MIRIG) with over 20,000 contracts and the September 42.50 calls (MIRIV) with over 40,000 options trading. Going further out in time there were 62,000 contracts traded on the January 40 calls (LGVAH). The stock has been on a strong uptrend -unusual for an electric company- but this seems to indicate some pending news or event between June and September that could affect the stock. Consol Energy (NYSE: CNX) saw heavy volume on the May 45 calls (CNXEI) with over 23,000 options trading likely as a result of the rally coal saw today. Altria Group (NYSE: MO) saw heavy volume on the January 85 calls (LLMAQ) with over 45,000 options trading. QualComm (NASDAQ: QCOM) saw heavy volume on the May 50 calls (AAOEJ) with over 31,000 options exchanged.


Kevin Kersten is an analyst with InvestorsObserver. DISCLOSURE NOTE: Mr. Kersten owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.