Wednesday, September 15, 2004

Wednesday Watch

Earnings of Note

None of note.

Economic Data
Empire Manufacturing for September estimated at 20.0 versus 12.57 in August.
Business Inventories for July estimated to rise .8% versus a .9% increase in June.
Industrial Production for August estimated to increase .5% versus a .4% rise in July.
Capacity Utilization for August estimated at 77.4% versus 77.1% in July.

Goldman Sachs reiterated Outperform on YHOO, RE, NKE, PMMAY, DNA, COH, LIZ and ENH. Goldman reiterated Underperform on PSS. NOK raised to Buy at UBS.

Late-Night News
Asian indices are mixed on strength in China and weakness in Japan. Taiwan's AU Optronics will delay indefinitely construction of a new plan to make liquid-crystal displays for televisions because of overcapacity, the Commercial Times said. China Central Television has arranged to have Chinese channels carried in the U.S. by the EchoStar satellite network, the South China Morning Post said. Apple Computer's iTunes music download service may be investigated by the U.K.'s Office of Fair Trading on concern it's charging U.K. customers more than French and German customers to buy tracks, the FT said. The U.S. is preparing to ask the UN for sanctions against Iran, aimed at halting its suspected nuclear weapons program, the Financial Times reported. Crude oil rose for a third day as Hurricane Ivan prompted Gulf of Mexico producers such as Royal Dutch/Shell Group to evacuate and shut platforms in the biggest disruptions of the region's output in at least two years, Bloomberg reported. Interest in the presidential election among the nation's youth is near the highest level since 18-to-20 year olds were given the right to vote in 1972, the NY Times said.

Late-Night Trading
Asian Indices are -.50% to +.25% on average, however China is rising 4.0%.
S&P 500 indicated -.14%.
NASDAQ 100 indicated -.38%

BOTTOM LINE: I expect U.S. equities to open modestly lower in the morning on rising energy prices, worries over damage from Hurricane Ivan and weakness in semiconductor shares. While stocks may come under slight pressure tomorrow, I do not expect a sharp decline. Software and internet shares should outperform in the technology sector. The Portfolio is 100% net long heading into tomorrow.

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