Tuesday, June 22, 2004

Mid-day Update

S&P 500 1,129.28 -.09%
NASDAQ 1,978.79 +.22%

Leading Sectors
Semis +2.46%
Networking +1.73%
Disk Drives +1.72%

Lagging Sectors
HMO's -.90%
Retail -.90%
Broadcasting -1.19%

Crude Oil 37.80 +.10%
Natural Gas 6.37 +.49%
Gold 395.50 +.25%
Base Metals 106.91 -2.66%
U.S. Dollar 89.44 +.21%
10-Yr. T-note Yield 4.70% +.42%
VIX 15.11 -.85%
Put/Call .80 +5.26%
NYSE Arms .82 -37.40%

Market Movers
PLMO +38.2% after beating 4Q estimates and raising 1Q forecast substantially.
GLYN +49.9% after Dick's Sporting Goods(DKS) agreed to buy it for $305 million is cash.
TBUS +17.9% after announcing it received an order for security-related equipment that will be used during the Olympic Games.
DKS +14.86% after saying GLYN acquisition will boost 04 earnings.
LABS +5.11% after saying it will be added to the S&P SmallCap 600.
ALOG -8.27% after saying it received notice that L-3(LLL) had filed suit against it.
MRX -6.42% after lowering 05 e.p.s. and raising 05 sales forecasts.
FRX -5.6% after the U.K. asked for details of an unpublished study of Celexa.

Economic Data
None of note.

Goldman Sachs reiterated Outperform on MRVL, DTV, KR, MCK, GLW, SYMC and SPG. Goldman reiterated Underperform on VRTX. Goldman expects AA to beat earnings estimates and AL to miss. Citi SmithBarney reiterated Buy on TYC, target $38. Citi reiterated Buy on ETN, target $78. Morgan Stanley cut TK to Underweight, target $38. Bank of America rated CRL Buy. QLGC raised to Buy at Merrill, target $34. NUVA rated Overweight at Lehman, target $16.

Mid-day News
U.S. stocks are quietly mixed today as strength in technology shares is being offset by weakness in retail and healthcare. The South Korean businessman being held hostage by an al-Qaeda linked militant group in Iraq was beheaded, CNBC reported. U.S. Commerce Secretary Donald Evans pressed Chinese Premier Wen Jiabao to float the yuan, curb government subsidies to industries and make clear the rules for imports and foreign investment, Bloomberg reported. The U.S. Senate passed a measure to stiffen fines against broadcasters that air indecent content, Bloomberg reported. A survey by E-Rewards found increasing problems with airlines' frequent-flier programs, 26% of respondents describing their recent experience in booking award travel as "much more difficult" or "virtually impossible," the NY Times reported. Donald Trump, who purchased 40 Wall Street for $1 million in 1995, may sell the 72-story, 1.3 million square foot building for $400 million or more, the NY Post reported. The United Auto Workers is cutting about 15% of its support staff, because of a decline in dues-paying members, the Detroit News reported. Tribune's LA Times cut about 160 positions at the newspaper, which faces lower-than-expected advertising sales, the Times reported. A recent report by UCLA forecasts the creation of 433,000 jobs in California through 05 on increased foreign trade and a rise in technology hiring, the LA Times reported. Iraq's transfer to a sovereign government next week will be an understated event because of security concerns, the Washington Times said. Iran is prepared to release eight British Royal Navy crew if the U.K. government apologizes for breaching Iranian sovereignty, Bloomberg reported. S&P 500 companies are very bullish, with positive-to-negative preannouncements at a record high according to Thomson First Call, IBD reported. Tradesports.com is showing a large jump in the chances of John Edwards being named the Democratic VP nominee.

BOTTOM LINE: The Portfolio is down slightly today as my longs are mostly lower and shorts are mixed. I have not traded today and the Portfolio is still 75% net long. Another quiet day as traders and investors remain apprehensive ahead of several market-moving events. Oil and interest rates are steady, however the ARMS Index is falling more than I would like to see. It is a positive that semis are outperforming. I expect stocks to remain mixed throughout the day.

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