S&P 500 1,126.21 -.07%
NASDAQ 1,994.22 -.32%
Leading Sectors
Airlines +2.24%
Fashion +1.36%
Hospitals +.80%
Lagging Sectors
Iron/Steel -.88%
Disk Drives -1.05%
Computer Boxmakers -1.28%
Other
Crude Oil 35.75 -.03%
Natural Gas 5.88 -.81%
Gold 427.70 -.14%
Base Metals 113.40 +1.0%
U.S. Dollar 87.61 -.93%
10-Yr. Long-Bond Yield 3.84% -1.52%
VIX 16.74 +2.83%
Put/Call 1.29 +111.48%
NYSE Arms 1.24 +63.16%
After-hours Movers
SUPG -24.7% after it reported disappointing study results on its Dacogen medicine for a bone-marrow disorder.
LSCP +13.50% saying that the Centers for Medicare and Medicaid Services moved its treatment for enlarged prostates to a new classification with double the reimbursement rate.
AEOS +5.75% after significantly raising 1Q estimates.
Recommendations
Cramer, of TheStreet.com says to Buy ADP ahead of the employment report. He thinks 250,000 jobs were created in March. QLTI cut to Underperform at Raymond James, target $22. CTX raised to Buy 1 at UBS. Goldman reiterated Outperform on BSX, BBY and KO. GS reiterated Underperform on TSG.
After-hours News
U.S. stocks finished lower Wednesday on weaker-than-expected economic reports, OPEC's production cut and QLogic's(QLGC) disappointing earnings report. After the close, Martha Stewart has asked for a new trial, alleging that one of the jurors who found her guilty concealed his arrest on assault charges.
BOTTOM LINE: The Portfolio was down slightly today as I cut market exposure to 75% net long on the close. While today wasn't a good day for the bulls, several positive developments occurred. The markets could have dropped a lot more considering the news. Oil prices dropped, notwithstanding the fire in Texas and the OPEC production cut. Best Buy(BBY), a good barometer of consumer spending, reported great earnings and rose almost 7% on huge volume. The Put/Call ratio soared, which is a good short-term contrary indicator. Finally, the market breadth was good on a down day.
Wednesday, March 31, 2004
Mid-day Update
S&P 500 1,125.98 -.09%
NASDAQ 1,993.51 -.36%
Leading Sectors
Airlines +2.75%
Fashion +1.36%
Hospitals +.72%
Lagging Sectors
Software -.63%
Disk Drives -1.0%
Computer Boxmakers -1.07%
Other
Crude Oil 35.05 -3.31%
Natural Gas 5.75 -.02%
Gold 427.20 +1.04%
Base Metals 113.40 +1.0%
U.S. Dollar 87.62 -.90%
10-Yr. Long-Bond Yield 3.87% -.54%
VIX 16.58 +1.97%
Put/Call .91 +49.18%
NYSE Arms .94 +23.68%
Market Movers
QLGC -21.2% after the company said 4Q sales missed its forecast.
BBY +8.0% after beating 4Q estimates and raising 1Q guidance.
CC +6.0% after meeting 4Q estimates and announcing the acquisition of ITN for $284M and privately held MusicNow.
TSG +18.1% after boosting 1Q and 04 estimates.
REDF +44.8% after announcing an agreement with YHOO to promote online shopping and content across both portals.
PLMO +11.58% after JP Morgan made positive comments.
USNA -8.4% after lowering 1Q estimates.
Economic Data
Chicago Purchasing Manager report for March was 57.6 versus a forecast of 61.0.
Factory Orders for February were +.3% versus a +1.5% estimate.
Recommendations
RDWR raised to Buy 2 at UBS, target $31. WDC raised to Overweight at Thomas Weisel. LLY raised to Buy at Merrill Lynch, target $80. ALKS added to Focus 1 list at Merrill, target $20. Bank of America said investors should sell bonds issued by European telecom companies as intensifying competition and regulation will dent earnings. XTO raised to Overweight at Prudential, target $31. ADSK price target raised to $38 at Pru. BBY raised to Buy at Legg Mason, target $65. TheStreet.com is recommending for-profit education stocks APOL, CECO, COCO, DV, EDMC, STRA, favorites are STRA and DV. TSC also recommending homebuilders DHI, KBH, LEN, PHM and SPF. Goldman Sachs reiterates Underperform on QLGC. Goldman reiterated Outperform on X, CCE, BBY, VZ, SBC and CCU. Citi Smith Barney said to Buy APCC ahead of quarter, $31 target. Citi upgraded LLY to 2M, target $72. Citi reiterated Buy on CCU and DIS.
Mid-day News
U.S. stocks are modestly lower on weaker-than-expected economic reports. At last count, Wall Street firms have contributed $5.5 million to Bush's re-election campaign, compared with $1.2 million to John Kerry's campaign, according to the Center for Responsive Politics, a nonpartisan organization. A recent analysis by the center found that many of Kerry's biggest donors on Wall Street actually have given far more generously to Bush's re-election effort. Goldman Sachs says the number of dividend increases announced this year continues to run ahead of the record levels in 2003. Exelon and Entergy, the biggest U.S. nuclear-power generators, and five other companies will seek government funding for design and licensing of new reactors. The U.S. Homeland Security department's campaign to encourage the public to prepare for terrorism hasn't spurred the majority of Americans to act, USA Today reported. A recent poll by the Council for Excellence shows 21% of Americans believe a major terrorist attack on U.S. soil is likely in the next few months. OPEC agreed to reduce oil production quotas starting tomorrow by 4.1%, threatening to drive gas prices higher and impede world economic growth, reported Bloomberg. Crude Oil fell after the Energy Department reported that U.S. inventories surged to the highest level in 19 months.
BOTTOM LINE: The Portfolio is down slightly today as my longs are mixed and shorts are up. I have not made any trades today and net market exposure is still 100% long. It is positive that violence in Iraq, below-expectations economic reports, confirmation of OPEC production cuts and a fire at America's third largest oil refinery could not send shares significantly lower or oil prices higher. Thus, while it is hard to game the last day of the quarter, I expect a rally later in the day.
NASDAQ 1,993.51 -.36%
Leading Sectors
Airlines +2.75%
Fashion +1.36%
Hospitals +.72%
Lagging Sectors
Software -.63%
Disk Drives -1.0%
Computer Boxmakers -1.07%
Other
Crude Oil 35.05 -3.31%
Natural Gas 5.75 -.02%
Gold 427.20 +1.04%
Base Metals 113.40 +1.0%
U.S. Dollar 87.62 -.90%
10-Yr. Long-Bond Yield 3.87% -.54%
VIX 16.58 +1.97%
Put/Call .91 +49.18%
NYSE Arms .94 +23.68%
Market Movers
QLGC -21.2% after the company said 4Q sales missed its forecast.
BBY +8.0% after beating 4Q estimates and raising 1Q guidance.
CC +6.0% after meeting 4Q estimates and announcing the acquisition of ITN for $284M and privately held MusicNow.
TSG +18.1% after boosting 1Q and 04 estimates.
REDF +44.8% after announcing an agreement with YHOO to promote online shopping and content across both portals.
PLMO +11.58% after JP Morgan made positive comments.
USNA -8.4% after lowering 1Q estimates.
Economic Data
Chicago Purchasing Manager report for March was 57.6 versus a forecast of 61.0.
Factory Orders for February were +.3% versus a +1.5% estimate.
Recommendations
RDWR raised to Buy 2 at UBS, target $31. WDC raised to Overweight at Thomas Weisel. LLY raised to Buy at Merrill Lynch, target $80. ALKS added to Focus 1 list at Merrill, target $20. Bank of America said investors should sell bonds issued by European telecom companies as intensifying competition and regulation will dent earnings. XTO raised to Overweight at Prudential, target $31. ADSK price target raised to $38 at Pru. BBY raised to Buy at Legg Mason, target $65. TheStreet.com is recommending for-profit education stocks APOL, CECO, COCO, DV, EDMC, STRA, favorites are STRA and DV. TSC also recommending homebuilders DHI, KBH, LEN, PHM and SPF. Goldman Sachs reiterates Underperform on QLGC. Goldman reiterated Outperform on X, CCE, BBY, VZ, SBC and CCU. Citi Smith Barney said to Buy APCC ahead of quarter, $31 target. Citi upgraded LLY to 2M, target $72. Citi reiterated Buy on CCU and DIS.
Mid-day News
U.S. stocks are modestly lower on weaker-than-expected economic reports. At last count, Wall Street firms have contributed $5.5 million to Bush's re-election campaign, compared with $1.2 million to John Kerry's campaign, according to the Center for Responsive Politics, a nonpartisan organization. A recent analysis by the center found that many of Kerry's biggest donors on Wall Street actually have given far more generously to Bush's re-election effort. Goldman Sachs says the number of dividend increases announced this year continues to run ahead of the record levels in 2003. Exelon and Entergy, the biggest U.S. nuclear-power generators, and five other companies will seek government funding for design and licensing of new reactors. The U.S. Homeland Security department's campaign to encourage the public to prepare for terrorism hasn't spurred the majority of Americans to act, USA Today reported. A recent poll by the Council for Excellence shows 21% of Americans believe a major terrorist attack on U.S. soil is likely in the next few months. OPEC agreed to reduce oil production quotas starting tomorrow by 4.1%, threatening to drive gas prices higher and impede world economic growth, reported Bloomberg. Crude Oil fell after the Energy Department reported that U.S. inventories surged to the highest level in 19 months.
BOTTOM LINE: The Portfolio is down slightly today as my longs are mixed and shorts are up. I have not made any trades today and net market exposure is still 100% long. It is positive that violence in Iraq, below-expectations economic reports, confirmation of OPEC production cuts and a fire at America's third largest oil refinery could not send shares significantly lower or oil prices higher. Thus, while it is hard to game the last day of the quarter, I expect a rally later in the day.
Wednesday Watch
Earnings Announcements
Company/Estimate
AM/.64
BBBY/.44
BBY/1.39
CC/.36
MANU/.03
MON/.57
VXGN/-.15
Splits
GGG 3-for-2
IDSA 2-for-1
WRI 3-for-2
Economic Data
Chicago Purchasing Manager for March estimated at 61.0 vs. 63.6 last month.
Factory Orders for February estimated +1.5% vs. -.5% in January.
Recommendations
Goldman Sachs reiterated Outperform on CCU.
Late-Night News
Asian stocks are mixed as strength in China is being offset by weakness in Japan and Hong Kong. Honda filed a lawsuit against Shuanghuan Automobile, alleging the Chinese company infringed its copyright on a sport utility vehicle, the Beijing Times reported. Wal-Mart suppliers will miss the January deadline set by the world's largest retailer for equipping shipments with radio-frequency tags, the Wall Street Journal reported. Aluminum producers in China have shuttered 350,000 tons a year of production capacity as efforts by the government to slow growth in the industry take effect, reported Bloomberg. Chinese steel producers are preparing to set up steel mills in the U.S., Brazil and Australia, from where they will ship the metal back to their home country, the Wall Street Journal reported. Kmart has sued almost 500 U.S. towns, cities and counties because the discount retailer claims its tax bills are too high, the WSJ reported. Crude oil in NY surged as much as 1.2% after reports of a fire in a refinery in Texas raised concern of gasoline shortages ahead of the peak demand season in the third-quarter.
Late-Night Trading
Asian Indices -.25% to +1.00%.
S&P 500 indicated -.18%.
NASDAQ indicated -.35%.
BOTTOM LINE: U.S. stocks will likely open weaker as gasoline in New York climbed to its highest price in 18 years after the explosion at the third largest refinery in the U.S. As of now, it is not clear if this was an act of terrorism or an accident. If the explosion was in fact an accident, U.S. shares will likely rally after early morning weakness. The Portfolio is 100% net long and I will look to trim market exposure into Friday's employment report. If terrorism was responsible, U.S. shares will fall significantly on the open. Under this scenario, I will wait for a bounce to reduce exposure significantly.
Company/Estimate
AM/.64
BBBY/.44
BBY/1.39
CC/.36
MANU/.03
MON/.57
VXGN/-.15
Splits
GGG 3-for-2
IDSA 2-for-1
WRI 3-for-2
Economic Data
Chicago Purchasing Manager for March estimated at 61.0 vs. 63.6 last month.
Factory Orders for February estimated +1.5% vs. -.5% in January.
Recommendations
Goldman Sachs reiterated Outperform on CCU.
Late-Night News
Asian stocks are mixed as strength in China is being offset by weakness in Japan and Hong Kong. Honda filed a lawsuit against Shuanghuan Automobile, alleging the Chinese company infringed its copyright on a sport utility vehicle, the Beijing Times reported. Wal-Mart suppliers will miss the January deadline set by the world's largest retailer for equipping shipments with radio-frequency tags, the Wall Street Journal reported. Aluminum producers in China have shuttered 350,000 tons a year of production capacity as efforts by the government to slow growth in the industry take effect, reported Bloomberg. Chinese steel producers are preparing to set up steel mills in the U.S., Brazil and Australia, from where they will ship the metal back to their home country, the Wall Street Journal reported. Kmart has sued almost 500 U.S. towns, cities and counties because the discount retailer claims its tax bills are too high, the WSJ reported. Crude oil in NY surged as much as 1.2% after reports of a fire in a refinery in Texas raised concern of gasoline shortages ahead of the peak demand season in the third-quarter.
Late-Night Trading
Asian Indices -.25% to +1.00%.
S&P 500 indicated -.18%.
NASDAQ indicated -.35%.
BOTTOM LINE: U.S. stocks will likely open weaker as gasoline in New York climbed to its highest price in 18 years after the explosion at the third largest refinery in the U.S. As of now, it is not clear if this was an act of terrorism or an accident. If the explosion was in fact an accident, U.S. shares will likely rally after early morning weakness. The Portfolio is 100% net long and I will look to trim market exposure into Friday's employment report. If terrorism was responsible, U.S. shares will fall significantly on the open. Under this scenario, I will wait for a bounce to reduce exposure significantly.
Tuesday, March 30, 2004
Tuesday Close
S&P 500 1,127.00 +.40%
NASDAQ 2,000.63 +.40%
Leading Sectors
Homebuilders +2.47%
Oil Service +2.44%
Energy +1.97%
Lagging Sectors
Drugs -.18%
Gaming -.58%
Airlines -1.28%
Other
Crude Oil 36.17 -.22%
Natural Gas 5.76 +.23%
Gold 422.60 -.05%
Base Metals 112.28 +.02%
U.S. Dollar 88.41 -.24%
10-Yr. Long-Bond Yield 3.89% +.15%
VIX 16.28 -1.33%
Put/Call .61 -6.15%
NYSE Arms .76 +117.14%
After-hours Movers
TKR +10.13% after raising 1Q guidance.
ONNN -5.81% after saying it is going to issue convertible bonds.
USNA -8.62% after lowering 1Q guidance.
Recommendations
TheStreet.com is recommending ASE.
After-hours News
U.S. stocks finished higher Tuesday on strength in energy-related shares and strong earnings reports from Accenture(ACN) and Autodesk(ADSK). Investors are the most bearish on U.S. Treasury notes than they've been in almost 7 years, according to a poll by JP Morgan. The European Union has warned China it must stop restrictions on the export of coking coal designed to protect the Chinese steel industry, the Financial Times reported. Trump Hotels & Casino Resorts' auditor Ernst & Young raised doubts about the ability of Donald Trump's casino company to survive because of increased competition and losses. The NYSE will give federal regulators its detailed plan for automated stock trading within a few weeks in a bid to win status as a "fast" market, NYSE CEO John Thain said.
BOTTOM LINE: The Portfolio finished unchanged on the day as my shorts rose and my longs finished mixed. I did not make any changes in the afternoon as my short-term models gave buy signals. Thus, the Portfolio is 100% net long heading into the last day of the quarter. The above-mentioned JP Morgan poll is significant as rates may not rise as much as I had anticipated on a much better-than expected jobs report. Bond investors extreme bearishness implies that a lot of investors have already sold or are short, thus providing fuel for future bond gains and falling interest rates.
NASDAQ 2,000.63 +.40%
Leading Sectors
Homebuilders +2.47%
Oil Service +2.44%
Energy +1.97%
Lagging Sectors
Drugs -.18%
Gaming -.58%
Airlines -1.28%
Other
Crude Oil 36.17 -.22%
Natural Gas 5.76 +.23%
Gold 422.60 -.05%
Base Metals 112.28 +.02%
U.S. Dollar 88.41 -.24%
10-Yr. Long-Bond Yield 3.89% +.15%
VIX 16.28 -1.33%
Put/Call .61 -6.15%
NYSE Arms .76 +117.14%
After-hours Movers
TKR +10.13% after raising 1Q guidance.
ONNN -5.81% after saying it is going to issue convertible bonds.
USNA -8.62% after lowering 1Q guidance.
Recommendations
TheStreet.com is recommending ASE.
After-hours News
U.S. stocks finished higher Tuesday on strength in energy-related shares and strong earnings reports from Accenture(ACN) and Autodesk(ADSK). Investors are the most bearish on U.S. Treasury notes than they've been in almost 7 years, according to a poll by JP Morgan. The European Union has warned China it must stop restrictions on the export of coking coal designed to protect the Chinese steel industry, the Financial Times reported. Trump Hotels & Casino Resorts' auditor Ernst & Young raised doubts about the ability of Donald Trump's casino company to survive because of increased competition and losses. The NYSE will give federal regulators its detailed plan for automated stock trading within a few weeks in a bid to win status as a "fast" market, NYSE CEO John Thain said.
BOTTOM LINE: The Portfolio finished unchanged on the day as my shorts rose and my longs finished mixed. I did not make any changes in the afternoon as my short-term models gave buy signals. Thus, the Portfolio is 100% net long heading into the last day of the quarter. The above-mentioned JP Morgan poll is significant as rates may not rise as much as I had anticipated on a much better-than expected jobs report. Bond investors extreme bearishness implies that a lot of investors have already sold or are short, thus providing fuel for future bond gains and falling interest rates.
Mid-day Update
S&P 500 1,121.43 -.09%
NASDAQ 1,985.91 -.33%
Leading Sectors
Oil Service +2.59%
Energy +1.85%
Fashion +1.48%
Lagging Sectors
Gaming -1.12%
Airlines -1.22%
Semis -1.50%
Other
Crude Oil 36.25 +2.26%
Natural Gas 5.71 +4.16%
Gold 423.10 +1.17%
Base Metals 112.28 +.02%
U.S. Dollar 88.30 -.37%
10-Yr. Long-Bond Yield 3.87% -.49%
VIX 16.67 +1.09%
Put/Call .54 -16.92%
NYSE Arms 1.08 +211.43%
Market Movers
VASC +53.86% after the maker of products that help doctors control patients' bleeding said a new version of one of its bandages received approval from the FDA.
NPSP +9.68% after saying its main experimental drug, Preos, was effective in a study that may lead to U.S. marketing approval.
INGR +17.31% after INTC said it would pay it $225M to settle a patent-infringement dispute over the Itanium chip.
ALDN +17.84% after raising 1Q guidance.
NSSC +13.88% after announcing a 2-for-1 split.
KVHI -9.72% after downgrade to Market Perform at CE Unterberg Towbin.
MATR -6.02% after lowering 1Q guidance.
Economic Data
Conference Board's Consumer Confidence for March was 88.3 vs. expectations of 86.0.
Recommendations
Goldman Sachs reiterated Outperform on MCH, PEP and ACN. GS cut S to Underperform. GS upgraded FD to Outperform. GS reiterated Underperform on SCS. Citi Smith Barney reiterated Buy on PEP. Citi removed MCH and CALD from focus list and adding EXTR. SWIR price target raised to $40.00 at CIBC. ATRX raised to Sector Outperform at CIBC. EMC rated Buy at Bank of America. MRO raised to Overweight at Lehman, target $40. TheStreet.com recommended ASYT. Cramer, of TheStreet.com, likes ERTS as MSFT left the video sports game biz.
Mid-day News
U.S. stocks are mostly lower mid-day on rising energy prices and profit-taking. Autodesk(ADSK) management said, "We are seeing increased demand across all geographies and industries, particularly in our Design Solutions Group." Russia's oil exports rose 22% from the start of the year to March 29, as the country's producers boosted output, said OAO Transneft. Crude oil futures rose after OPEC ministers said the group should reduce production targets as planned next month to prevent prices from sliding during the second quarter. U.S. House lawmakers proposed legislation to speed installation of airliners defenses against shoulder-fired missiles, saying the devices remain one of the greatest threats to aviation security, Bloomberg reported. Elaine Garzarelli told CNBC her models show that U.S. stocks are the cheapest they have been since before the 90's bull run, taking into account interest rates and profits.
BOTTOM LINE: The Portfolio is down today on weakness in airline and technology positions. I have taken profits in a few longs, bringing market exposure down to 100%. I will likely reduce this further on any strength in the afternoon. I don't want to have too much exposure into Friday's employment report.
NASDAQ 1,985.91 -.33%
Leading Sectors
Oil Service +2.59%
Energy +1.85%
Fashion +1.48%
Lagging Sectors
Gaming -1.12%
Airlines -1.22%
Semis -1.50%
Other
Crude Oil 36.25 +2.26%
Natural Gas 5.71 +4.16%
Gold 423.10 +1.17%
Base Metals 112.28 +.02%
U.S. Dollar 88.30 -.37%
10-Yr. Long-Bond Yield 3.87% -.49%
VIX 16.67 +1.09%
Put/Call .54 -16.92%
NYSE Arms 1.08 +211.43%
Market Movers
VASC +53.86% after the maker of products that help doctors control patients' bleeding said a new version of one of its bandages received approval from the FDA.
NPSP +9.68% after saying its main experimental drug, Preos, was effective in a study that may lead to U.S. marketing approval.
INGR +17.31% after INTC said it would pay it $225M to settle a patent-infringement dispute over the Itanium chip.
ALDN +17.84% after raising 1Q guidance.
NSSC +13.88% after announcing a 2-for-1 split.
KVHI -9.72% after downgrade to Market Perform at CE Unterberg Towbin.
MATR -6.02% after lowering 1Q guidance.
Economic Data
Conference Board's Consumer Confidence for March was 88.3 vs. expectations of 86.0.
Recommendations
Goldman Sachs reiterated Outperform on MCH, PEP and ACN. GS cut S to Underperform. GS upgraded FD to Outperform. GS reiterated Underperform on SCS. Citi Smith Barney reiterated Buy on PEP. Citi removed MCH and CALD from focus list and adding EXTR. SWIR price target raised to $40.00 at CIBC. ATRX raised to Sector Outperform at CIBC. EMC rated Buy at Bank of America. MRO raised to Overweight at Lehman, target $40. TheStreet.com recommended ASYT. Cramer, of TheStreet.com, likes ERTS as MSFT left the video sports game biz.
Mid-day News
U.S. stocks are mostly lower mid-day on rising energy prices and profit-taking. Autodesk(ADSK) management said, "We are seeing increased demand across all geographies and industries, particularly in our Design Solutions Group." Russia's oil exports rose 22% from the start of the year to March 29, as the country's producers boosted output, said OAO Transneft. Crude oil futures rose after OPEC ministers said the group should reduce production targets as planned next month to prevent prices from sliding during the second quarter. U.S. House lawmakers proposed legislation to speed installation of airliners defenses against shoulder-fired missiles, saying the devices remain one of the greatest threats to aviation security, Bloomberg reported. Elaine Garzarelli told CNBC her models show that U.S. stocks are the cheapest they have been since before the 90's bull run, taking into account interest rates and profits.
BOTTOM LINE: The Portfolio is down today on weakness in airline and technology positions. I have taken profits in a few longs, bringing market exposure down to 100%. I will likely reduce this further on any strength in the afternoon. I don't want to have too much exposure into Friday's employment report.
Tuesday Watch
Earnings Announcements
Company/Estimate
ACN/.25
KMX/.21
Splits
AMG 3-for-2
APH 2-for-1
XTEX 2-for-1
Economic Data
None of note.
Recommendations
Goldman Sachs says it sees a brighter outlook for IT spending as capital expenditure estimates among tech's 3 key end markets(financials, communications and manufacturing) have been moving higher. GS says EMC, DELL, IBM, BRCD, HPQ, LXK, NTAP and VRTSE will benefit. GS reiterated Outperform on DHR. Lehman Brothers recommended investors lower the duration of U.S. bond portfolios amid "ubiquitous" signs of rising interest rates, including faster inflation and employment growth that is poised to accelerate.
Late-Night News
Asian stocks are mostly higher, led by strength in Hong Kong shares on strong earnings reports. Japan sold about a third less yen in the second half of the past month compared with the previous two weeks because an improving economy made it harder to justify a weaker yen, JP Morgan said. The SEC is investigating whether some businesses have been awarding employees stock options before announcing information that boosts the shares, the Wall Street Journal reported. U.S. companies' politically controversial practice of sending technology industry work outside the country results in the creation of twice as many jobs in the U.S. and some wage increases, the Wall Street Journal said. PepsiCo(PEP) boosted its annual dividend by 44% after saying its quarterly and annual profit will be at the high end of forecasts. AT&T will allow New Jersey and Texas customers to make phone calls over the internet starting today, the WSJ reported. U.S. restaurants are beginning to rebound with the largest chains reporting sales growth of up to 6% in January and February, the WSJ reported.
Late-Night Trading
Asian Indices -.25% to +1.75%.
S&P 500 indicated -.12%.
NASDAQ indicated -.24%.
BOTTOM LINE: The Portfolio is 125% net long and I will use any strength in the next few days to reduce market exposure ahead of Friday's employment report. A rise in the yield of the 10-yr. T-note through 4.21% from its current level of 3.87% would break its short-term downtrend. This will likely happen on a much better-than-expected employment report. However, I expect an in-line to slightly better-than-expected report which shouldn't result in a significant rise in rates.
Company/Estimate
ACN/.25
KMX/.21
Splits
AMG 3-for-2
APH 2-for-1
XTEX 2-for-1
Economic Data
None of note.
Recommendations
Goldman Sachs says it sees a brighter outlook for IT spending as capital expenditure estimates among tech's 3 key end markets(financials, communications and manufacturing) have been moving higher. GS says EMC, DELL, IBM, BRCD, HPQ, LXK, NTAP and VRTSE will benefit. GS reiterated Outperform on DHR. Lehman Brothers recommended investors lower the duration of U.S. bond portfolios amid "ubiquitous" signs of rising interest rates, including faster inflation and employment growth that is poised to accelerate.
Late-Night News
Asian stocks are mostly higher, led by strength in Hong Kong shares on strong earnings reports. Japan sold about a third less yen in the second half of the past month compared with the previous two weeks because an improving economy made it harder to justify a weaker yen, JP Morgan said. The SEC is investigating whether some businesses have been awarding employees stock options before announcing information that boosts the shares, the Wall Street Journal reported. U.S. companies' politically controversial practice of sending technology industry work outside the country results in the creation of twice as many jobs in the U.S. and some wage increases, the Wall Street Journal said. PepsiCo(PEP) boosted its annual dividend by 44% after saying its quarterly and annual profit will be at the high end of forecasts. AT&T will allow New Jersey and Texas customers to make phone calls over the internet starting today, the WSJ reported. U.S. restaurants are beginning to rebound with the largest chains reporting sales growth of up to 6% in January and February, the WSJ reported.
Late-Night Trading
Asian Indices -.25% to +1.75%.
S&P 500 indicated -.12%.
NASDAQ indicated -.24%.
BOTTOM LINE: The Portfolio is 125% net long and I will use any strength in the next few days to reduce market exposure ahead of Friday's employment report. A rise in the yield of the 10-yr. T-note through 4.21% from its current level of 3.87% would break its short-term downtrend. This will likely happen on a much better-than-expected employment report. However, I expect an in-line to slightly better-than-expected report which shouldn't result in a significant rise in rates.
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