IBD's Top 10 - Friday

Stocks Rise Broadly; Volume Up
1 The Nasdaq led with a 1.1% jump, making a new high for the year. Goldman Sachs (OOTC:GSGRP) (NYSE:GS) ' upgrade of Intel (NASDAQ:INTC) boosted chip stocks and other techs. The NYSE composite rose 0.9% and the S&P 500 0.7%. Volume surged on quadruple witching. Another tame inflation report helped stocks. It also took the yield on the 10-year Treasury to 5.15%, down 7 basis points.
Core Inflation Continues To Fall
2 May core consumer prices rose 0.1% vs. April. Year over year, core CPI climbed 2.2%. That's still above the Fed's 1%-2% comfort zone, but it's the lowest in 14 months and down from 2.9% last Sept. Overall consumer prices rose 0.7% after April's 0.4% gain, led by rising energy costs. It was the biggest gain since Sept. 2005. Prices were up 2.7% vs. May last year.
Immigration Bill Back On Track
3 Legislation to strengthen border security while bestowing legal status on millions of illegal immigrants is showing signs of life, with Senate leaders saying they'll bring it back for a vote as soon as this week. "Each day our nation fails to act, the problem only grows worse," President Bush said. He lobbied hard to rescue the bill after many Republicans withheld their support.
Hamas Killings Continue In Gaza
4 Hamas mocked Fatah rivals on its first day in full control of Gaza, offering a few Fatah leaders amnesty but also tossing a Fatah fighter to his death from a rooftop. Hamas supporters ransacked President Mahmoud Abbas' home in Gaza City. In the West Bank, where Fatah maintains control, Abbas appointed a new gov't. The U.S., U.N., Egypt and Jordan pledged to support Abbas.
Gates Tours Iraq; F-16 Crashes
5 Defense Secretary Robert Gates backed Gen. David Petraeus' criticism that previous Iraq commanders gave overly optimistic assessments of progress in the war. Gates went to Baghdad, which has been under a strict curfew after a recent mosque bombing. Meanwhile, the Air Force said one of its F-16 fighter jets crashed in Iraq. The pilot's fate is unknown.
Penn Nat'l Gaming OKs Buyout
6 The casino operator agreed to be acquired by Fortress Investment Group and Centerbridge Partners for $8.9 bil in cash. Under the deal, shareholders will receive $67 a share. Penn rose 21.5% to 62.12. Penn National Gaming's (NASDAQ:PENN) PENN CEO and CFO are expected to stay on. The buyout lift gaming stocks, with MGM Mirage (NYSE:MGM) surging 4.2%.
Monsanto Raises EPS Outlook
7 The biggest seed company raised its '07 earnings outlook to $1.75-$1.80 a share, above views of $1.69. Monsanto (NYSE:MON) MON said it had strong sales of its corn seeds -- fueled by growing demand for ethanol -- as well as its herbicides. It also said Q3 results were expected to be about $1 per share on an ongoing and reported basis. Views are 76 cents.
NATO Targets Cyberterrorism
8 Defense ministers at a gathering of 26 NATO nations in Belgium agreed that there's an "urgent need" to develop protections against "cyberattacks" that could destabilize international markets or even disrupt military communications. Experts have long warned such assaults are inevitable. Last month, an Internet-based attack crippled some bank operations in Estonia.
N. Korea Warns On Missile Plan
9 North Korea warned it may strengthen its "self-defense deterrent," seen as a reference to its nuclear program, in response to U.S. and NATO plans to build a missile shield in Eastern Europe. North Korea just recently started to start dismantle a nuclear plant in return for an easing of sanctions and access to its funds overseas.
Foreign Money Flows Into U.S.
10 International investors bought a net $111.8 bil in U.S. securities in April, up from $30.1 bil in March, the Treasury Dept. said. Net April long-term capital inflows, excluding swaps, rose to $84.1 billion from $51.2 billion in net purchases recorded for March. The U.S. needs to attract nearly $2 bil a day to help cover its trade deficit. Newstex ID: IBD-0001-17510491
Originally published in the June 15, 2007 version of Investor's Business Daily.