Thursday, April 01, 2004

Thursday Watch

Earnings Announcements
Company/Estimate
DLP/.24
PIR/.54
SCHN/.47

Splits
None of note.

Economic Data
Producer Price Index for February estimated +.3% vs. +.6% in January.
PPI Ex Food & Energy for February estimated +.1% vs. +.3% in January.
Initial Jobless Claims for last week estimated at 340K vs. 339K the prior week.
Continuing Claims estimated at 3008K vs. 3004K prior.
Construction Spending for February estimated unch. vs. -.3% in January.
ISM Manufacturing for March estimated at 59.5 vs. 61.4 in February.
ISM Prices Paid for March estimated at 82.0 vs. 81.5 in February.
Total Vehicle Sales for March estimated at 16.7M vs. 16.4M in February.
Domestic Vehicle Sales for March estimated at 13.4M vs. 13.2M in February.

Recommendations
Goldman Sachs reiterated Underperform on HUM. GS reiterated Outperform on PPL.

Late-Night News
Asian stocks are mixed as strength in Australian shares is offset by modest weakness in Hong Kong and Japan. Eliot Spitzer, NY's attorney general, asked state lawmakers to limit the amount auto dealers may mark up interest rates on consumer car loans, the WSJ reported. Sun Mirco's(SUNW) version of the Linux operating system is now available on personal computers sold on the Wal-Mart Web site, the AP reported. Sony sued Kodak over digital camera patents, Nikkei said. The Bank of Japan's Tankan survey showed sentiment among large manufacturers was the highest since 1997 and service companies became optimistic for the first time in 7 years as an export-led recovery spreads to consumers. Japan joined the U.S. and E.U complaint against China in the World Trade Organization over tax breaks that give Chinese chipmakers an unfair advantage in the world's fastest growing semiconductor market.

Late-Night Trading
Asian Indices -.25% to +.75%.
S&P 500 indicated +.11%.
NASDAQ indicated +.03%.

BOTTOM LINE: I expect U.S. stocks to rise modestly on light volume tomorrow ahead of Friday's employment report. I will use any strength to cut market exposure to 50% net long by the close. The numerous economic reports will likely result in above-average volatility.

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