NASDAQ 2,068.62 +.36%
Leading Sectors
Homebuilders +2.86%
Iron/Steel +2.34%
Oil Service +1.85%
Lagging Sectors
Broadcasting -.51%
Restaurants -.55%
Biotech -.72%
Other
Crude Oil 47.42 unch.
Natural Gas 7.19 -.64%
Gold 438.90 +.80%
Base Metals 118.30 +1.47%
U.S. Dollar 83.74 -.64%
10-Yr. T-note Yield 4.18% -1.63%
VIX 13.10 +.54%
Put/Call .78 +9.86%
NYSE Arms .85 -8.60%
Market Movers
DELL +7.2% after meeting 3Q estimates and reiterating 4Q outlook.
A -13.7% after missing 4Q estimates, lowering 1Q guidance and multiple downgrades.
PSS +16.3% after beating 3Q estimates and raising 4Q outlook.
PIXR +4.5% after substantially beating 3Q estimates and boosting 04 outlook.
DRIV +10.5% on no news.
VRSN +6.8% on continued optimism over VOIP security product.
CPO +5.4% on Citi upgrade to Buy.
GTIV -15.4% on negative WSJ article and Fulcrum downgrade to Neutral.
MATK -9.8% after saying the European Patent Office revoked its European DHA/ARA Oil Blends patent.
ZBRA -4.0% after denying rumors that it lost a significant client.
Economic Data
Advance Retail Sales for October rose .2% versus estimates of a .1% gain and a 1.6% rise in September.
Retail Sales Less Autos for October rose .9% versus estimates of a .6% rise and a .8% gain in September.
Preliminary Univ. of Mich. Consumer Confidence for November was 95.5 versus estimates of 93.1 and a reading of 91.7 in October.
Business Inventories for September rose .1% versus estimates of a .5% increase and a .7% rise in August.
Recommendations
-Goldman Sachs reiterated Outperform on KSS, SBC, GCI, DEX, AGN and DELL. Goldman reiterated Underperform on BVF and FRX. Goldman reiterated Attractive view of Metals, favorites are AL, N, FCX and NEM.
-Citi SmithBarney upgraded CPO to Buy, target $57. Citi reiterated Buy on GE, target $38. Citi reiterated Buy on TPX, target $24. Citi reiterated Buy on DHI, target $55. Citi reiterated Buy on DELL, target $43. Citi reiterated Sell on PGR, target $79. Citi reiterated Sell on ABT, target $39. Citi reiterated Buy on JNJ, target $71. Citi reiterated Buy on NT, target $5. Citi reiterated Buy on HD, target $46.50. Citi reiterated Buy on LOW, target $70. Citi reiterated Buy on BEAS, target $11.50. Citi rated JNJ Buy, target $71.
-JP Morgan added DOW to Focus List, target $60. CEY cut to Underweight at JP Morgan.
-UBS rated WPSC Reduce, target $29.
-Bank of America cut A to Sell, target $16.75. BofA cut CEC to Sell, target $33. BofA raised TEN to Buy, target $19.
-CSFB cut JNY to Underperform, target $30.
Mid-day News
U.S. stocks are higher mid-day on better-than-expected economic reports and another decline in energy prices. Connecticut Attorney General Blumenthal has subpoenaed 42 insurance companies and brokerages seeking information about fraudulent activity, the Wall Street Journal reported. AOL has started telling customers in nine U.S. Southern sates that they must find a new high-speed Internet access provider by Jan. 17, the AP reported. The Coca-Cola Co. increased its annual spending on advertising by as much as $400 million yesterday, joining several large companies that are spending more to stimulate growth, the NY Times reported. U.S. election officials and a report by two universities said electronic voting machines used on Election Day performed well and didn't produce inaccurate outcomes, the NY Times reported. AOL plans to buy a minority stake in Kayak Software to add online travel services, the AP reported. NY Democratic Attorney General Spitzer will sue Universal Life Resources, a health-benefits consultant based in California, CNBC reported. Palestinian leader Arafat's widow will receive $22 million/year from Palestinian Authority funds while the people live in poverty, the Italian paper Corriere della Sera reported. Junk bond prices are expensive with yields at their lowest in seven years and may be poised to drop as appetite for high-risk, high-yield debt wanes, according to Moody's Investors Service. Dell shares rose after CEO Rollins said demand for computers and printers is "quite healthy," keeping the company ahead of schedule on a plan to reach $60 billion in sales by 2007, Bloomberg reported. FedEx said it will have $48 million in costs in its fiscal second quarter to account for repaying the federal government for payments made after the 2001 terrorist attacks, Bloomberg reported. Sales at U.S. retailers rose .9% in October, excluding auto purchases, the biggest increase in five months, Bloomberg said. U.S. consumer confidence rose more-than-expected in November as President Bush won re-election, stocks rose, energy prices fell and job creation surged, Bloomberg reported.
Bottom Line: The Portfolio is substantially higher mid-day on strength in my steel, homebuilding and internet longs. I have not traded today and the Portfolio is still 125% net long. The underlying tone of the market remains very healthy as many leaders are rising substantially on good volume, notwithstanding small gains in the major indices. I continue to believe oil will fall to around $35-40/bbl. within the next few months, providing further stimulus to the global economy. I also anticipate GDP growth to approach 5% during 4Q, making for a better-than-expected holiday season. I expect U.S. stocks to rise modestly into the close on short-covering, bargain-hunting, falling energy prices and accelerating U.S. economic growth.
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