Wednesday, August 11, 2004

Wednesday Watch

Earnings of Note

None of note.

Economic Data
Monthly Budget Statement for July estimated at -$61.8B versus -$54.2B in June.

Goldman Sachs reiterated Outperform on DELL.

Late-Night News
Asian indices are mixed after the U.S. Fed raised rates and Cisco Systems gave a disappointing outlook. U.S. merger and acquisition activity with France fell by 80% last year as acquisitions increased across the world, the Financial Times said. French wine production may rise by a fifth to a five-year high this year because of a larget grape harvest, adding to an excess of global supplies, Agence France-Presse said. The U.S. is considering stationing a second aircraft carrier in the Asia-Pacific region amid threats of nuclear weapons development by North Korea and potential conflict between Taiwan and China, Xinhua Financial News Service reported. Marsh & McLennan and Willis Group Holdings are being sued by a policyholder's group that argues the companies didn't properly disclose special commissions from insurers, the Wall Street Journal reported.

Late-Night Trading
Asian Indices are -.50% to +.75% on average.
S&P 500 indicated -.25%.
NASDAQ 100 indicated -.52%

BOTTOM LINE: I expect U.S. equities to open lower on weakness in networking and semiconductor stocks. I will closely monitor the market's reaction to Cisco's report to decide whether or not to decrease market exposure. The Portfolio is 100% net long heading into tomorrow.

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