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From Briefing.com: 4:20 pm : The market took a breather Thursday as investors, looking a bit fatigued, lacked the data needed to support the best three-day percentage gain on the S&P 500 since April 2003. It also wasn't surprising to see the Nasdaq, fresh off its largest percentage gain (+2.0%) since last October, as becoming ripe for a pullback. The Dow finished to the upside, but its 0.22% gain was nothing to write home about and still left it shy of turning positive for the year.

Before the bulls could even find room to rationalize a rally fueled by a revised Fed policy statement that didn't indicate any imminent rate cut a day earlier, they were greeted with some negative news in a Tech sector whose earnings potential is already under the microscope. Last night, Motorola (MOT 17.52 -1.22) warned of a loss for this quarter and forecasted the company's first sales decline in four years. That news trumped a blowout quarter from Oracle (ORCL 18.51 +0.34) two days ago and questioned the sustainability of Technology's recent recovery.

The absence of leadership in a Financials sector that has been a significant driver behind gains on all three major averages in five of the prior six sessions acted as an even larger overhang on the market. Thrifts & Mortgage (-1.3%), already one of this year's biggest disappointments (-7.0%) amid overblown concerns about subprime mortgage woes spilling over into the broader economy, was the sector's weakest link today. As if a Fed official saying that some borrowers are clearly experiencing "significant financial and personal challenges" wasn't enough Countrywide Financial (CFC 36.36 -0.59) followed by saying its foreclosures on 2006 subprime mortgages may top 2000's 9.9%, becoming the worst year yet.

Also stalling follow-through momentum were soaring oil prices. Crude for May delivery surged 3.5% to $61.69/bbl, its biggest one-day gain in six weeks, amid growing concerns that gasoline supplies remain inadequate to meet upcoming summer driving demand. Fortunately for the bulls, the Energy sector tacking a 1.8% advance onto yesterday's strong 1.7% gain helped to offset some of the commodity's inflationary potential. Exxon Mobil (XOM 74.34 +1.11), the most heavily weighted constituent on the S&P 500, climbed 1.5% in response to oil's advance.

Fellow Dow component Procter & Gamble (PG 63.85 +0.89), the blue-chip index's second best performer, gained 1.4% after being upgraded at Bear Stearns on valuation. P&G's gain, along with General Mills (GIS 58.32 +0.44) topping expectations and raising its full-year outlook, helped the Consumer Staples garner added attention for its defensive characteristics. BTK +0.37% DJ30 +13.62 DJTA -0.04% DJUA +0.11% DOT -0.16% NASDAQ -4.18 NQ100 -0.37% R2K +0.03% SOX -1.26% SP400 +0.23% SP500 -0.50 XOI +1.59% NASDAQ Dec/Adv/Vol 1449/1578/1.89 bln NYSE Dec/Adv/Vol 1633/1619/1.50 bln

4:05PM Palm beats on top and bottom line; issues in line Q4 EPS guidance, light rev guidance (PALM) 17.74 1.71 : Reports Q3 (Feb) earnings of $0.16 per share, excluding non-recurring items, $0.04 better than the Reuters Estimates consensus of $0.12. Co issues Q4 guidance, sees EPS of $0.13-0.16 vs. $0.15 consensus; sees Q4 revs of $400-410 mln vs. $416.84 mln consensus. "We delivered solid results in the third fiscal quarter and continue to expand our global market presence," said Ed Colligan, Palm president and chief executive officer. "Treo smartphone sell-through and revenue reached record levels, and Palm products were available to smartphone customers through seven of the top 10 carriers in the world."

4:01PM M-Wave managers submit letter of intent to purchase existing business (MWAV) 3.22 -0.11 : Co announces its special committee of its board of directors has received a non binding letter of intent from Joseph Turek, its Chairman and COO, and Robert Duke, president of its Electro-Mechanical Group division, to purchase substantially all of the assets of the EMG division. Mr. Turek and Mr. Duke together currently own approx 20% of M-Wave's outstanding common stock. The special committee of the board of directors has elected to study the LOI and leave open the potential for additional offers prior to making a decision whether to accept or reject the offer. In furtherance of that objective, the special committee re-engaged the investment banking firm of B-Riley to advise the board regarding the fairness of the offer and any other offers that may be made for the EMG division.

3:59PM Market View: Mixed trade near recovery highs (TECHX) : The indices began the day on a roll as they were up the last three in a row and five out of six (+5% Nasdaq Comp, +4.5% Dow and +5.4% S&P 500 low to high). Early attempts to build on the advance generated no follow through interest but like most of the sessions over the last week or so, no selling pressure was evident leaving the indices confined modestly below yesterday/opening session highs. Energy paced the way on the upside (Coal +2.5%, Oil Service HOLDRs +1.5%, Energy SPDR +1.8%, Oil +1.5%, Natural Gas +1.3%) with Airline -2.7% Computer-Hardware -1.6%, Networking -1.1%, Semi HOLDRs -1% and Home Construction -1% topping the sector losers list.