Mid-day Scoreboard

Indices
S&P 500 1,177.11 -.90%
DJIA 10,441.28 -.64%
NASDAQ 1,981.76 -1.17%
Russell 2000 604.91 -1.32%
DJ Wilshire 5000 11,586.50 -.93%
S&P Barra Growth 568.20 -.82%
S&P Barra Value 604.37 -1.0%
Morgan Stanley Consumer 585.65 -.15%
Morgan Stanley Cyclical 731.76 -1.55%
Morgan Stanley Technology 446.57 -1.37%
Transports 3,563.20 -2.28%
Utilities 367.55 -.62%
Put/Call .79 -33.05%
NYSE Arms 1.45 +50.50%
Volatility(VIX) 12.42 +9.91%
ISE Sentiment 183.00 +16.56%
US Dollar 84.45 +.01%
CRB 300.51 -.69%

Futures Spot Prices
Crude Oil 50.25 -3.10%
Unleaded Gasoline 148.20 -3.44%
Natural Gas 7.02 -1.04%
Heating Oil 143.90 -1.79%
Gold 431.10 +.42%
Base Metals 125.38 -3.26%
Copper 145.70 -2.61%
10-year US Treasury Yield 4.39% +.79%

Leading Sectors
Drugs +1.26%
Tobacco +.33%
Hospitals +.26%

Lagging Sectors
Transports -2.14%
Semis -2.15%
Steel -3.33%

BOTTOM LINE: US stocks are lower mid-day on worries over slowing growth and a bounce in long-term interest rates. The Portfolio is slightly lower on losses in my Homebuilding, Tech and Financial longs. I exited a number of Tech and Homebuilding longs this morning, thus leaving the Portfolio’s market exposure 50% net long. The tone of the market is negative as the advance/decline line is weak, almost every sector is lower and volume is modest. Measures of investor anxiety are mixed. Today’s overall market action is negative, considering the decline in commodity prices, the market’s oversold state and its inability to add to yesterday’s gains. Investors appear to be factoring in the possibility of a recession sooner than I had anticipated. With commodity prices breaking down and economic data coming in bellow expectations, Fed comments will become even more important. Any sign that the pace of rate hikes will slow should spur equities. I believe this will occur over the coming weeks. I continue to expect lower energy prices, low interest rates and modestly improving employment prospects to boost economic growth in the second half. I expect US stocks to trade mixed into the close as lower energy prices offset worries over slowing growth.

Today's Headlines

Bloomberg:
- ASML Holding NV, Europe’s largest maker of equipment used to make semiconductors, forecast a drop in orders this quarter from the previous three months.
- Abu Dhabi, holder of the world’s fifth-largest oil reserves, will offer stakes in its five biggest fields to foreign companies such as Exxon Mobil to boost output capacity by 25%.
- The OECD plans to cut its growth estimates for this year and next because of weaker-than-expected economies in Japan and Europe.
- Joseph Perella and Terry Meguid, Morgan Stanley’s top two investment bankers, plan to resign as the exodus of senior managers from the world’s No. 2 securities firm gathers pace.
- Siebel Systems said Michael Lawrie stepped down as CEO, less than a year after raking the reins from Thomas Siebel.
- Merck said it probably earned first-quarter profit of 62 cents a share, more than the company had forecast.
- Crude oil is falling more than $1 a barrel to a seven-week low after an Energy Dept. report showed that US inventories climbed for a ninth consecutive week as OPEC boosted production.

Wall Street Journal:
- California officials expect the state to be able to handle summer electricity demand if temperatures are normal, but a hot season could mean shortages in the south of the state.
- A food workers’ union said it filed claims of unfair labor practices against Wal-Mart Stores to press the retailer to release documents.
- The US Congress is due to start a debate today on the Central American Free Trade Agreement.
- The House Energy and Commerce Committee gave federal regulators primary authority over the location of liquefied natural gas terminals on US coasts.
- The SEC will postpone the deadline for requiring companies to start expensing employee stock options.
- Amazon.com had an injunction imposed against it lifted by a state appellate court in a dispute with Toys “R” Us over exclusivity rights.

Dow Jones:
- Brijot Imaging Systems, a security company that has licensed millimeter-wave technology from Lockheed Martin, plans to deliver camera systems that can spot weapons on people from 45 feet.

NY Times:
- The rising cost of steel is forcing US developers to scale back or drop projects.
- Yahoo! said it will give free Web sites to small businesses.
- US companies reported about a 12% average return on pension investments last year.

Metal Bulletin:
- Copper production at a mine in Chile owned by Anglo American Plc and Falconbridge Ltd. dropped to 65% of capacity because of technical problems.

San Francisco Chronicle:
- A California legislative committee approved a bill that would allow terminally ill patients in the state to hasten their death.

Tehran Times:
- Iran is China’s third-largest supplier of crude oil, after Saudi Arabia and Angola.

Economic Releases

- Advance Retail Sales for March rose .3% versus estimates of a .8% increase and a .5% gain in February.
- Retail Sales for March rose .1% versus estimates of a .5% increase and a .6% gain in February.
- Summary of Weekly Petroleum Data for the Week Ending April 8, 2005.

Morning Buy/Sell Recommendations

Goldman Sachs:
- Reiterated Outperform on MUR and AMLN.

Smith Barney:
- Said to Buy SSCC on weakness, target $23.
- Reiterated Buy on ENN, target $12.25.
- Reiterated Buy on KPA, target $15.25.
- Reiterated Sell on IMCL, target $29.
- Reiterated Buy on BIIB, target $42.
- Reiterated Buy on MXRE, target $28.50.
- Reiterated Buy on FDRY, target $11.
- Reiterated Buy on AMTD, target $13.25.

Morgan Stanley:
- Rated IMCL Overweight, target $52.
- Reiterated Overweight on GSF, target $49.

Lehman Brothers:
- Lowered HDI to Underweight.
- Reiterated Overweight on JOYG, target $50.
- Reiterated Overweight on BUCY, target $44.

CSFB:
- Raised EYET to Outperform, target $40..
- Raised BWA to Outperform, target $55.
- Rated ENZN Underperform, target $10.
- Reiterated Outperform on GCI, target $97.
- Reiterated Outperform on UTX, target $107.

Thomas Weisel:
- Raised BWNG to Outperform.

Raymond James:
- Rated SVM Strong Buy, target $17.50.

UBS:
- Raised APPB to Buy, target $33.
- Raised GOL to Buy, target $36.

Deutsche Bank:
- Rated BLC Buy, target $28.

Links of Interest

Links of Interest
Market Internals
Movers & Shakers
I-Watch Sector Overview
NYSE Unusual Volume
NASDAQ Unusual Volume
NASDAQ 100 Heatmap
DJIA Quick Charts
Chart Toppers
Hot Spots
Option Dragon
Real-time Intraday Chart/Quote