Tuesday, April 06, 2004

Tuesday Watch

Earnings Announcements
Company/Estimate
AA/.42
BCF/.80
ESIO/.12
INTV/.09
UTIW/.32

Splits
DKS 2-for-1
FCFS 3-for-2

Economic Data
None of note.

Recommendations
Goldman Sachs recommended selling GAS and buying ATG. GS reiterated Buy on BSX.

Late-Night News
Asian stocks are mostly higher as investors speculate recent strong economic reports in the U.S. point to sustainable worldwide growth. Taser International(TASR) said police forces are ordering more of its electrical stun guns even as deaths related to the weapon rise. Taser's backlog is at 12 weeks and the gun has been responsible for 40 deaths. Most police agencies using the guns report fewer shootings, deaths and injuries, CBS reported. China's ports and rail system are clogged by surging shipments of coal, iron ore, and other raw materials, forcing up prices of the materials, the China Daily reported. Plans to allow U.K. casinos with more than 40 gaming tables to install unlimited numbers of slot machines may be restricted to a limited number of machines per casino, the Financial Times said. The SEC and U.S. lawmakers are in the middle of an unprecedented drive to clean up the country's mutual-fund industry, the Wall Street Journal reported.

Late-Night Trading
Asian Indices -.50% to +2.25%.
S&P 500 indicated -.10%.
NASDAQ indicated -.07%.

BOTTOM LINE: I expect U.S. stocks to move modestly higher tomorrow. The strength of the late-day rally, strong Asian markets, a stabilizing bond market and weaker oil prices should boost U.S. shares tomorrow. The Portfolio is 100% net long and I will continue to rotate out of recent winners and into stocks with great fundamentals, low valuations and improving technicals. The market seems unconcerned by the recent spate of violence in Iraq. I will closely monitor this situation and cut market exposure on any signs that investors are beginning to focus their attention on geopolitical issues once again.

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