Earnings Announcements
Company/Estimate
CBK/.21
CKR/-.08
STZ/.54
DAB/.41
DNA/.32
YHOO/-.11
Splits
None of note.
Economic Data
Import Price Index estimated +.6% for March vs. +.4% prior month.
Recommendations
Goldman Sachs reiterated Underperform on EK. GS says they expect FLEX and PLXS to surprise on the upside and raise guidance. GS says CLS is favorite EMS company for long-run. GS reiterated Outperform on UTX and GDT.
Late-Night News
Asian stocks are slightly on quiet trading. An Iraqi armed force killed 12 U.S. soldiers west of Baghdad as Donald Rumsfeld said coalition forces isolated the city of Fallujah, Bloomberg reported. Japan's foreign currency government bond rating was raised to Aaa from Aa1 by Moody's Investors Service, Bloomberg reported. Oracle's loss of a deal to provide the U.S. Justice Department with as much as $24M of software to a small competitor has boosted its case against antitrust authorities in its hostile bid for Peoplesoft, the Wall Street Journal reported.
Late-Night Trading
Asian Indices unch. to +.50%.
S&P 500 indicated -.17%.
NASDAQ indicated -.27%.
BOTTOM LINE: Technology shares will likely open lower in the morning on Seagate's(STX) disappointing earnings guidance. Anxiety over violence in Iraq may pressure shares as well. I will closely monitor the market's response to the Seagate news and make a decision on whether or not to add exposure on weakness or add new shorts to cut exposure.
Wednesday, April 07, 2004
Tuesday, April 06, 2004
Tuesday Close
S&P 500 1,148.16 -.21%
NASDAQ 2,059.90 -.92%
Leading Sectors
Airlines +1.13%
Iron/Steel +.88%
Homebuilders +.83%
Lagging Sectors
Broadband +2.05%
Semis +2.05%
Wireless +2.06%
Other
Crude Oil 35.15 +.51%
Natural Gas 5.81 +.02%
Gold 420.20 +.10%
Base Metals 112.82 +.08%
U.S. Dollar 88.69 -.59%
10-Yr. Long-Bond Yield 4.15% -1.35%
VIX 15.32 +2.34%
Put/Call .82 +28.13%
NYSE Arms .91 +97.83%
After-hours Movers
MGM +6.98% on no news.
STX -12.76% on lowering 3Q forecast.
ESIO -13.88% on lower-than-expected 3Q revenues.
Recommendations
Goldman Sachs reiterated Outperform on WAG and IGT.
After-hours News
U.S. stocks finished lower on worries over technology sector earnings and profit-taking. General Electric(GE) and Rolls-Royce won contracts from Boeing to make engines for its 7E7 aircraft, the Wall Street Journal reported. Alcoa(AA), the world's largest maker of aluminum, said first-quarter profit more than doubled because of higher sales to automobile and airplane makers, higher prices for its products and lower costs.
BOTTOM LINE: The Portfolio was down today as my technology longs fell and shorts were unchanged. I took profits in several tech long positions into the close, leaving market exposure for the Portfolio at 50% net long. I will look to add exposure on any significant weakness related to violence in Iraq or short-term earnings worries.
NASDAQ 2,059.90 -.92%
Leading Sectors
Airlines +1.13%
Iron/Steel +.88%
Homebuilders +.83%
Lagging Sectors
Broadband +2.05%
Semis +2.05%
Wireless +2.06%
Other
Crude Oil 35.15 +.51%
Natural Gas 5.81 +.02%
Gold 420.20 +.10%
Base Metals 112.82 +.08%
U.S. Dollar 88.69 -.59%
10-Yr. Long-Bond Yield 4.15% -1.35%
VIX 15.32 +2.34%
Put/Call .82 +28.13%
NYSE Arms .91 +97.83%
After-hours Movers
MGM +6.98% on no news.
STX -12.76% on lowering 3Q forecast.
ESIO -13.88% on lower-than-expected 3Q revenues.
Recommendations
Goldman Sachs reiterated Outperform on WAG and IGT.
After-hours News
U.S. stocks finished lower on worries over technology sector earnings and profit-taking. General Electric(GE) and Rolls-Royce won contracts from Boeing to make engines for its 7E7 aircraft, the Wall Street Journal reported. Alcoa(AA), the world's largest maker of aluminum, said first-quarter profit more than doubled because of higher sales to automobile and airplane makers, higher prices for its products and lower costs.
BOTTOM LINE: The Portfolio was down today as my technology longs fell and shorts were unchanged. I took profits in several tech long positions into the close, leaving market exposure for the Portfolio at 50% net long. I will look to add exposure on any significant weakness related to violence in Iraq or short-term earnings worries.
Mid-day Update
S&P 500 1,145.06 -.48%
NASDAQ 2,055.29 -1.15%
Leading Sectors
Airlines +1.62%
Homebuilders +.93%
Transports +.42%
Lagging Sectors
Broadband -1.99%
Wireless -2.15%
Semis -2.92%
Other
Crude Oil 34.55%
Natural Gas 5.75 -.93%
Gold 419.50 +.77%
Base Metals 112.82 +.08%
U.S. Dollar 88.69 -.59%
10-Yr. Long-Bond Yield 4.18% -.56%
VIX 15.38 +2.81%
Put/Call .80 +25.0%
NYSE Arms 1.09 +136.96%
Market Movers
NOK -18.6% after announcing 1Q sales shortfall on weakness in handset biz.
TXN -6.56% on NOK's weak handset sales and JP Morgan downgrade to Underweight.
NWS/A +6.2% on announcing plans to move headquarters from Australia to the U.S.
ANDW +15.0% after boosting 2Q guidance substantially.
BARZ +8.4% after announcing acquisition by Morgan Stanley.
CMI +6.42% after boosting 1Q, 2Q and 04 guidance.
BRKT -37.73% after missing 1Q sales estimates.
ZOLL -24.97% after lowering 2Q and 04 guidance.
SFNT -17.76% after lowering 1Q and 04 guidance.
OMCL -27.2% after lowering 1Q guidance.
Economic Data
None of note.
Recommendations
SBL rated Outperform at Thomas Weisel, target $18. FON raised to Buy at Merrill. ADVS rated Underweight at JP Morgan, DGIN rated Overweight. TXN cut to Underweight at JP Morgan. CHUX raised to Strong Buy at Raymond James. AMT and SSI rated Overweight at Lehman Brothers. Goldman Sachs says recent survey shows quarter-end acceleration in on-line advertising, increased estimates for YHOO, rated Outperform. GS says 1Q Non-life insurance results should underscore earnings recovery phase of current cycle, favorites are ALL and RE. Goldman said NOK network equipment revenues beat expectations, positive for CLS and SANM. GS rated GE Outperform. GS thinks ITT, TYC, EMR and CSL will raise guidance on quarterly reports. GS reiterated Outperform on FS, NAV, BSX, PH and DNA. Citi Smith Barney reiterated Buy on UPS, $80 target. Citi reiterated Buy on AV, $25 target. Citi reiterated Buy on YHOO, target $60. Citi reiterated Buy on FDRY, $32.50 target. Citi said Air Force issued the Network-Centric Solutions RFP worth $10B over 5 years, will benefit CSCO, AV, NT, JNPR, FDRY, EXTR, FFIV and ETS. Citi raised estimates on MCD, reiterated Buy. Citi initiated JBLU and DAL with Sell ratings, AMR and AAI with Buy ratings.
Mid-day News
U.S. stocks are lower mid-day on a weak technology sector as Nokia's disappointing report pressures the group. JP Morgan says a recent survey by bond investors shows they are the most bearish in 12 years. News Corp.(NWS), parent of the Fox television network, plans to shift its headquarters to the U.S. from Australia. Goldman Sachs expects semi equipment companies to report approximately 25% sequential order growth in the March quarter and to guide for approximately 10% sequential order growth in June quarter. Higher energy prices don't threaten growth in the U.S. economy or add much to inflation concerns, William Poole, president of the Federal Reserve Bank of St. Louis, said in an interview with USA Today. Furthermore, Poole said "There is no regular and reliable relationship between inflation in materials prices or goods at an early stage of processing and retail price inflation." Boeing may choose an engine maker this week for its 7E7 aircraft, a contract worth $40B over 25 years, GE and UTX are U.S. companies in the running.
BOTTOM LINE: The Portfolio is down today on weakness in technology shares. I have not traded, leaving the Portfolio 100% net long, and will make a decision on whether or not to cut market exposure in the final hour. I think Nokia's(NOK) disappointing guidance is stock-specific and the market is over-reacting to the news. They actually raised guidance in their network equipment division. Traders were looking for a reason to take profits after the recent rally and are using NOK as the excuse. I would be a buyer of semis/equipment on weakness unrelated to Nokia's disappointing handset sales.
NASDAQ 2,055.29 -1.15%
Leading Sectors
Airlines +1.62%
Homebuilders +.93%
Transports +.42%
Lagging Sectors
Broadband -1.99%
Wireless -2.15%
Semis -2.92%
Other
Crude Oil 34.55%
Natural Gas 5.75 -.93%
Gold 419.50 +.77%
Base Metals 112.82 +.08%
U.S. Dollar 88.69 -.59%
10-Yr. Long-Bond Yield 4.18% -.56%
VIX 15.38 +2.81%
Put/Call .80 +25.0%
NYSE Arms 1.09 +136.96%
Market Movers
NOK -18.6% after announcing 1Q sales shortfall on weakness in handset biz.
TXN -6.56% on NOK's weak handset sales and JP Morgan downgrade to Underweight.
NWS/A +6.2% on announcing plans to move headquarters from Australia to the U.S.
ANDW +15.0% after boosting 2Q guidance substantially.
BARZ +8.4% after announcing acquisition by Morgan Stanley.
CMI +6.42% after boosting 1Q, 2Q and 04 guidance.
BRKT -37.73% after missing 1Q sales estimates.
ZOLL -24.97% after lowering 2Q and 04 guidance.
SFNT -17.76% after lowering 1Q and 04 guidance.
OMCL -27.2% after lowering 1Q guidance.
Economic Data
None of note.
Recommendations
SBL rated Outperform at Thomas Weisel, target $18. FON raised to Buy at Merrill. ADVS rated Underweight at JP Morgan, DGIN rated Overweight. TXN cut to Underweight at JP Morgan. CHUX raised to Strong Buy at Raymond James. AMT and SSI rated Overweight at Lehman Brothers. Goldman Sachs says recent survey shows quarter-end acceleration in on-line advertising, increased estimates for YHOO, rated Outperform. GS says 1Q Non-life insurance results should underscore earnings recovery phase of current cycle, favorites are ALL and RE. Goldman said NOK network equipment revenues beat expectations, positive for CLS and SANM. GS rated GE Outperform. GS thinks ITT, TYC, EMR and CSL will raise guidance on quarterly reports. GS reiterated Outperform on FS, NAV, BSX, PH and DNA. Citi Smith Barney reiterated Buy on UPS, $80 target. Citi reiterated Buy on AV, $25 target. Citi reiterated Buy on YHOO, target $60. Citi reiterated Buy on FDRY, $32.50 target. Citi said Air Force issued the Network-Centric Solutions RFP worth $10B over 5 years, will benefit CSCO, AV, NT, JNPR, FDRY, EXTR, FFIV and ETS. Citi raised estimates on MCD, reiterated Buy. Citi initiated JBLU and DAL with Sell ratings, AMR and AAI with Buy ratings.
Mid-day News
U.S. stocks are lower mid-day on a weak technology sector as Nokia's disappointing report pressures the group. JP Morgan says a recent survey by bond investors shows they are the most bearish in 12 years. News Corp.(NWS), parent of the Fox television network, plans to shift its headquarters to the U.S. from Australia. Goldman Sachs expects semi equipment companies to report approximately 25% sequential order growth in the March quarter and to guide for approximately 10% sequential order growth in June quarter. Higher energy prices don't threaten growth in the U.S. economy or add much to inflation concerns, William Poole, president of the Federal Reserve Bank of St. Louis, said in an interview with USA Today. Furthermore, Poole said "There is no regular and reliable relationship between inflation in materials prices or goods at an early stage of processing and retail price inflation." Boeing may choose an engine maker this week for its 7E7 aircraft, a contract worth $40B over 25 years, GE and UTX are U.S. companies in the running.
BOTTOM LINE: The Portfolio is down today on weakness in technology shares. I have not traded, leaving the Portfolio 100% net long, and will make a decision on whether or not to cut market exposure in the final hour. I think Nokia's(NOK) disappointing guidance is stock-specific and the market is over-reacting to the news. They actually raised guidance in their network equipment division. Traders were looking for a reason to take profits after the recent rally and are using NOK as the excuse. I would be a buyer of semis/equipment on weakness unrelated to Nokia's disappointing handset sales.
Tuesday Watch
Earnings Announcements
Company/Estimate
AA/.42
BCF/.80
ESIO/.12
INTV/.09
UTIW/.32
Splits
DKS 2-for-1
FCFS 3-for-2
Economic Data
None of note.
Recommendations
Goldman Sachs recommended selling GAS and buying ATG. GS reiterated Buy on BSX.
Late-Night News
Asian stocks are mostly higher as investors speculate recent strong economic reports in the U.S. point to sustainable worldwide growth. Taser International(TASR) said police forces are ordering more of its electrical stun guns even as deaths related to the weapon rise. Taser's backlog is at 12 weeks and the gun has been responsible for 40 deaths. Most police agencies using the guns report fewer shootings, deaths and injuries, CBS reported. China's ports and rail system are clogged by surging shipments of coal, iron ore, and other raw materials, forcing up prices of the materials, the China Daily reported. Plans to allow U.K. casinos with more than 40 gaming tables to install unlimited numbers of slot machines may be restricted to a limited number of machines per casino, the Financial Times said. The SEC and U.S. lawmakers are in the middle of an unprecedented drive to clean up the country's mutual-fund industry, the Wall Street Journal reported.
Late-Night Trading
Asian Indices -.50% to +2.25%.
S&P 500 indicated -.10%.
NASDAQ indicated -.07%.
BOTTOM LINE: I expect U.S. stocks to move modestly higher tomorrow. The strength of the late-day rally, strong Asian markets, a stabilizing bond market and weaker oil prices should boost U.S. shares tomorrow. The Portfolio is 100% net long and I will continue to rotate out of recent winners and into stocks with great fundamentals, low valuations and improving technicals. The market seems unconcerned by the recent spate of violence in Iraq. I will closely monitor this situation and cut market exposure on any signs that investors are beginning to focus their attention on geopolitical issues once again.
Company/Estimate
AA/.42
BCF/.80
ESIO/.12
INTV/.09
UTIW/.32
Splits
DKS 2-for-1
FCFS 3-for-2
Economic Data
None of note.
Recommendations
Goldman Sachs recommended selling GAS and buying ATG. GS reiterated Buy on BSX.
Late-Night News
Asian stocks are mostly higher as investors speculate recent strong economic reports in the U.S. point to sustainable worldwide growth. Taser International(TASR) said police forces are ordering more of its electrical stun guns even as deaths related to the weapon rise. Taser's backlog is at 12 weeks and the gun has been responsible for 40 deaths. Most police agencies using the guns report fewer shootings, deaths and injuries, CBS reported. China's ports and rail system are clogged by surging shipments of coal, iron ore, and other raw materials, forcing up prices of the materials, the China Daily reported. Plans to allow U.K. casinos with more than 40 gaming tables to install unlimited numbers of slot machines may be restricted to a limited number of machines per casino, the Financial Times said. The SEC and U.S. lawmakers are in the middle of an unprecedented drive to clean up the country's mutual-fund industry, the Wall Street Journal reported.
Late-Night Trading
Asian Indices -.50% to +2.25%.
S&P 500 indicated -.10%.
NASDAQ indicated -.07%.
BOTTOM LINE: I expect U.S. stocks to move modestly higher tomorrow. The strength of the late-day rally, strong Asian markets, a stabilizing bond market and weaker oil prices should boost U.S. shares tomorrow. The Portfolio is 100% net long and I will continue to rotate out of recent winners and into stocks with great fundamentals, low valuations and improving technicals. The market seems unconcerned by the recent spate of violence in Iraq. I will closely monitor this situation and cut market exposure on any signs that investors are beginning to focus their attention on geopolitical issues once again.
Monday, April 05, 2004
Monday Close
S&P 500 1,150.57 +.77%
NASDAQ 2,079.12 +1.07%
Leading Sectors
HMO's +4.56%
Nanotechnology +3.29%
Gaming +2.53%
Lagging Sectors
I-Banks -.50%
Broadcasting -.60%
Homebuilders -1.73%
Other
Crude Oil 34.27 -.32%
Natural Gas 5.76 -.50%
Gold 416.80 +.12%
Base Metals 112.73 -1.78%
U.S. Dollar 89.22 +.80%
10-Yr. Long-Bond Yield 4.20% +1.52%
VIX 14.97 -4.28%
Put/Call .64 -3.03%
NYSE Arms .46 -8.00%
After-hours Movers
NCEN +6.83% after announcing its board voted to convert the company to a REIT.
ARRY +13.83% after announcing the commencement of a drug discovery collaboration with Takeda Chemical.
K +5.12% after boosting 1Q and 04 estimates.
BRKT -28.70% after cutting 1Q sales forecast.
OMCL -21.80% after cutting 1Q sales and earnings forecasts.
SFNT -11.57% after cutting 1Q and 04 forecast.
Recommendations
Goldman Sachs reiterated Outperform on GDT, VZ, SBC, FDC, LEA, Goldman says REITs have 10-15% more downside on interest rate risk. Cody Willard, of TheStreet.com, told CNBC he likes JNPR and AFCI the most in the telecom equipment sector.
After-hours News
U.S. stocks finished solidly higher on positive earnings reports and a very strong ISM Non-manufacturing report. Interest-rate sensitive groups remained under pressure as the yield on the 10-yr. T-note rose to 4.21%. After the close, the Financial Times said that internet criminals are accessing files stored on laptop computers through Wi-Fi networks. A magnitude 6.5 earthquake hit Islamabad, the capital of Pakistan, the AP reported. The U.S. dollar rose to a 4-month high vs. the euro as the major economies of Europe sputter and U.S. growth is set to rise in 04 at the fastest pace in over 20 years, Bloomberg reported. A recent study shows that 55% of the mercury emitted into the world's atmosphere comes from volcanoes and forest fires, 22% from Chinese power plants and less than 1% from U.S. power plants, reported CNBC.
BOTTOM LINE: The Portfolio had another good day today. I took profits in a couple of recent winners and added some new long positions in healthcare technology, leaving market exposure at 100% net long. One of the new additions to the Portfolio is eResearch Technology(ERES). I am keeping a $27.60 stop-loss on this position. I was surprised by the strength of the late-day rally today. I had anticipated the negative geopolitical news over the weekend, rising interest rates and profit-taking would lead to short-term weakness. This is a big positive for the bulls and shows the market's underlying strength. Good earnings reports and relatively little important economic data should allow stocks to rally modestly throughout the rest of this holiday-shortened week. The shorts are really taking a beating right now. Short-covering should keep any near-term sell-off in check.
NASDAQ 2,079.12 +1.07%
Leading Sectors
HMO's +4.56%
Nanotechnology +3.29%
Gaming +2.53%
Lagging Sectors
I-Banks -.50%
Broadcasting -.60%
Homebuilders -1.73%
Other
Crude Oil 34.27 -.32%
Natural Gas 5.76 -.50%
Gold 416.80 +.12%
Base Metals 112.73 -1.78%
U.S. Dollar 89.22 +.80%
10-Yr. Long-Bond Yield 4.20% +1.52%
VIX 14.97 -4.28%
Put/Call .64 -3.03%
NYSE Arms .46 -8.00%
After-hours Movers
NCEN +6.83% after announcing its board voted to convert the company to a REIT.
ARRY +13.83% after announcing the commencement of a drug discovery collaboration with Takeda Chemical.
K +5.12% after boosting 1Q and 04 estimates.
BRKT -28.70% after cutting 1Q sales forecast.
OMCL -21.80% after cutting 1Q sales and earnings forecasts.
SFNT -11.57% after cutting 1Q and 04 forecast.
Recommendations
Goldman Sachs reiterated Outperform on GDT, VZ, SBC, FDC, LEA, Goldman says REITs have 10-15% more downside on interest rate risk. Cody Willard, of TheStreet.com, told CNBC he likes JNPR and AFCI the most in the telecom equipment sector.
After-hours News
U.S. stocks finished solidly higher on positive earnings reports and a very strong ISM Non-manufacturing report. Interest-rate sensitive groups remained under pressure as the yield on the 10-yr. T-note rose to 4.21%. After the close, the Financial Times said that internet criminals are accessing files stored on laptop computers through Wi-Fi networks. A magnitude 6.5 earthquake hit Islamabad, the capital of Pakistan, the AP reported. The U.S. dollar rose to a 4-month high vs. the euro as the major economies of Europe sputter and U.S. growth is set to rise in 04 at the fastest pace in over 20 years, Bloomberg reported. A recent study shows that 55% of the mercury emitted into the world's atmosphere comes from volcanoes and forest fires, 22% from Chinese power plants and less than 1% from U.S. power plants, reported CNBC.
BOTTOM LINE: The Portfolio had another good day today. I took profits in a couple of recent winners and added some new long positions in healthcare technology, leaving market exposure at 100% net long. One of the new additions to the Portfolio is eResearch Technology(ERES). I am keeping a $27.60 stop-loss on this position. I was surprised by the strength of the late-day rally today. I had anticipated the negative geopolitical news over the weekend, rising interest rates and profit-taking would lead to short-term weakness. This is a big positive for the bulls and shows the market's underlying strength. Good earnings reports and relatively little important economic data should allow stocks to rally modestly throughout the rest of this holiday-shortened week. The shorts are really taking a beating right now. Short-covering should keep any near-term sell-off in check.
Mid-day Update
S&P 500 1,143.66 +.16%
NASDAQ 2,062.51 +.26%
Leading Sectors
HMO's +4.09%
Nanotechnology +2.78%
Gaming +2.20%
Lagging Sectors
Oil Service -.53%
I-Banks -.80%
Homebuilders -2.64%
Other
Crude Oil 34.23 -.47%
Natural Gas 5.86 +.83%
Gold 417.00 -1.30%
Base Metals 1112.73 -1.78%
U.S. Dollar 89.30 +.89%
10-Yr. Long-Bond Yield 4.22 +1.85%
VIX 15.54 -.64%
Put/Call .73 +10.61%
NYSE Arms .65 +30.0%
Market Movers
NT -4.45% after saying the SEC issued formal order of investigation related to previous restatement.
CI +13.2% after significantly raising 1Q and 04 estimates.
OHP +10.14% after Wall Street Journal reported that it may be acquired by WC.
CVS +6.67% after announcing solid same-store-sales for March and the acquisition of 1,260 Eckerd drugstores from J.C. Penney, making it the number 1 drugstore operator in the U.S.
CCRD -20.2% after lowering 1Q and 2Q estimates, multiple downgrades.
Homebuilders and Mortgage providers are falling across the board again on interest rate fears.
Economic Data
ISM Non-Manufacturing for March 65.8 vs. expectations of 61.5.
Recommendations
Goldman Sachs reiterated Outperform on EMC, SAP, VLO, UNH and MO. Citi Smith Barney raised estimates and reiterated Buy on DNA ahead of earnings. Citi says their top software picks are MSFT, SEBL and INFA. Citi expects BAC, BK, JPM, NCC, ONE, WFC to post strong quarters and BBT, MTB, PNC, TCB and UPC to miss estimates. KCI and AMTD rated Overweight at JP Morgan. ORCL raised to Sector Outperform at CIBC. SE raised to Buy at Merrill. CAM raised to Buy at Jefferies. KMX and TKLC raised to Strong Buy at Raymond James. TheStreet.com has a negative article on QCOM, saying tech firms ranging from INTC to CSCO are bankrolling rivals to its CDMA wireless standard. Cramer, of TheStreet.com, says oil will fall more than investors expect, giving a big boost to the economy and stock market. He also says the longer the Fed waits to raise rates the less he likes stocks.
Mid-day News
U.S. stocks are mostly higher mid-day on positive earnings news and a very strong ISM Non-manufacturing report. JetBlue was ranked the best U.S. airline in quality last year, with the second-best on-time performance and the second-lowest number of complaints, the AP said. Pakistan offered to host nuclear disarmament talks with India, Agence France-Presse reported. Philip Morris International offered to pay about $1B over 12 years to settle European Union charges it aids cigarette smuggling that cost governments billions of euros in lost tax revenue. The ISM Non-manufacturing Index, a gauge of U.S. service industries which make up the largest share of the U.S. economy, jumped in March to an all-time record as orders and employment climbed. Tax refunds and mortgage refinancing have helped lift consumer demand, reported Bloomberg. The survey's index of prices paid rose to 65.7 from 57.3 in February.
BOTTOM LINE: The Portfolio is having a good day today as a few of my tech longs are up substantially and my shorts are down. I have not traded and the Portfolio's market exposure is still 100% net long. The markets are quietly consolidating after their recent run-up. I would view any advance today as a big positive, considering the violence in Iraq over the weekend and a continued rise in interest rates. I may take some profits later in the day as I have a few positions that are up substantially over the last 10 days.
NASDAQ 2,062.51 +.26%
Leading Sectors
HMO's +4.09%
Nanotechnology +2.78%
Gaming +2.20%
Lagging Sectors
Oil Service -.53%
I-Banks -.80%
Homebuilders -2.64%
Other
Crude Oil 34.23 -.47%
Natural Gas 5.86 +.83%
Gold 417.00 -1.30%
Base Metals 1112.73 -1.78%
U.S. Dollar 89.30 +.89%
10-Yr. Long-Bond Yield 4.22 +1.85%
VIX 15.54 -.64%
Put/Call .73 +10.61%
NYSE Arms .65 +30.0%
Market Movers
NT -4.45% after saying the SEC issued formal order of investigation related to previous restatement.
CI +13.2% after significantly raising 1Q and 04 estimates.
OHP +10.14% after Wall Street Journal reported that it may be acquired by WC.
CVS +6.67% after announcing solid same-store-sales for March and the acquisition of 1,260 Eckerd drugstores from J.C. Penney, making it the number 1 drugstore operator in the U.S.
CCRD -20.2% after lowering 1Q and 2Q estimates, multiple downgrades.
Homebuilders and Mortgage providers are falling across the board again on interest rate fears.
Economic Data
ISM Non-Manufacturing for March 65.8 vs. expectations of 61.5.
Recommendations
Goldman Sachs reiterated Outperform on EMC, SAP, VLO, UNH and MO. Citi Smith Barney raised estimates and reiterated Buy on DNA ahead of earnings. Citi says their top software picks are MSFT, SEBL and INFA. Citi expects BAC, BK, JPM, NCC, ONE, WFC to post strong quarters and BBT, MTB, PNC, TCB and UPC to miss estimates. KCI and AMTD rated Overweight at JP Morgan. ORCL raised to Sector Outperform at CIBC. SE raised to Buy at Merrill. CAM raised to Buy at Jefferies. KMX and TKLC raised to Strong Buy at Raymond James. TheStreet.com has a negative article on QCOM, saying tech firms ranging from INTC to CSCO are bankrolling rivals to its CDMA wireless standard. Cramer, of TheStreet.com, says oil will fall more than investors expect, giving a big boost to the economy and stock market. He also says the longer the Fed waits to raise rates the less he likes stocks.
Mid-day News
U.S. stocks are mostly higher mid-day on positive earnings news and a very strong ISM Non-manufacturing report. JetBlue was ranked the best U.S. airline in quality last year, with the second-best on-time performance and the second-lowest number of complaints, the AP said. Pakistan offered to host nuclear disarmament talks with India, Agence France-Presse reported. Philip Morris International offered to pay about $1B over 12 years to settle European Union charges it aids cigarette smuggling that cost governments billions of euros in lost tax revenue. The ISM Non-manufacturing Index, a gauge of U.S. service industries which make up the largest share of the U.S. economy, jumped in March to an all-time record as orders and employment climbed. Tax refunds and mortgage refinancing have helped lift consumer demand, reported Bloomberg. The survey's index of prices paid rose to 65.7 from 57.3 in February.
BOTTOM LINE: The Portfolio is having a good day today as a few of my tech longs are up substantially and my shorts are down. I have not traded and the Portfolio's market exposure is still 100% net long. The markets are quietly consolidating after their recent run-up. I would view any advance today as a big positive, considering the violence in Iraq over the weekend and a continued rise in interest rates. I may take some profits later in the day as I have a few positions that are up substantially over the last 10 days.
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