Friday, July 23, 2004

Friday Watch

Earnings of Note
Company/Estimate
AAII/-.20
ATN/.42
CCU/.41
CMI/1.34
FO/1.25
IT/.09
HAL/.33
LSCC/.03
ITT/1.15
MYG/.40
SLB/.49
WY/1.13
XRX/1.17

Splits
None of note.

Economic Data
None of note. 

Recommendations
Goldman Sachs reiterated Outperform on NUE, TPX, KO, VIAB, MCK, AMGN, SII, AA, CLS, LEA, DHR, IGT and SKYW.  Goldman reiterated Underperform on VC and FISV.

Late-Night News
Asian indices are mostly lower on continuing concerns that high energy prices will affect exporters.  ConocoPhillips is near an agreement to buy a 7.6% stake in Russia's OAO Lukoil for about $1.7 billion, the Wall Street Journal reported.  Acambis Plc said it could still win a third contract to supply smallpox vaccines for the U.S. government, the Telegraph said.  Huaneng Power plans to expand capacity by at least two-thirds in the next 4 years to meet China's expanding demand for electricity, the China Daily reported.  Fast-food chains including Burger King are losing their value as consumers turn away from food brands that don't endorse healthier menus, the London-based Times said.  Apple Computer starts a trade-in service for its iPod digital music player in Japan today to help prevent customers from switching to rival products, the Nikkei English News reported.  Shares of LG.Philips LCD, the world's second-largest marker of liquid crystal displays, slumped on their first day of trading in the U.S. on concern falling prices will slow earnings growth, Bloomberg reported.  The U.S. Congress approved an increase in defense spending to $416 billion next fiscal year, including $25 billion for military operations in Iraq.  The appropriations bill passed the Senate on a vote of 96-0 and passed the House of Representatives 410-12, Bloomberg reported.

Late-Night Trading
Asian Indices are -.75% to -.25% on average.
S&P 500 indicated -.08%.
NASDAQ 100 indicated -.43%

BOTTOM LINE:  I expect U.S. stocks to open modestly lower in the morning on weakness in technology shares.  The market will likely make another rally attempt tomorrow.  I will closely monitor the quality of any rally and decide whether or not to add market exposure.  My short-term trading indicators are still giving sell signals and the Portfolio is 50% net short heading into tomorrow.

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