S&P 500 1,140.53 -.66%
NASDAQ 2,050.24 -.47%
Leading Sectors
Broadcasting +1.32%
Oil Service +1.03%
Fashion +.50%
Lagging Sectors
Internet -.94%
Airlines -1.22%
Telecom -1.34%
Other
Crude Oil 36.27 +3.72%
Natural Gas 5.89 1.45%
Gold 424.30 +1.07%
Base Metals 112.54 -.25%
U.S. Dollar 88.27 -.39%
10-Yr. Long-Bond Yield 4.16% +.24%
VIX 15.76 +2.87%
Put/Call .70 -14.63%
NYSE Arms 1.85 +103.30%
After-hours Movers
YHOO +9.7% after beating 1Q estimates, raising 2Q and 04 guidance and announcing 2-for-1 split.
HOTT -4.84% on disappointing March same-store-sales.
BSTE +5.71% after substantially raising 1Q estimates.
Internet-related companies up across the board on YHOO news.
Recommendations
Goldman Sachs raised estimates on ALL and reiterated Outperform. GS reiterated Outperform on YHOO, IGT, AGI, UTX, IBM, PFE and DNA.
After-hours News
U.S. stocks finished slightly lower Wednesday on rising energy prices, violence in Iraq, lower-than-expected earnings from Alcoa/Seagate and profit-taking. After the close, Dell(DELL), Research in Motion(RIMM), Genentech(DNA) and Yahoo!(YHOO) all made positive announcements regarding business conditions. France, Russia and China blocked enforcement of United Nations sanctions of Iraq, contributing to former dictator Saddam Hussein's theft of money from the oil-for-food program, Bloomberg reported. The U.S.-led coalition in Iraq vowed to defeat the Mahdi militia of fugitive cleric al-Sadr while attempting to kill and capture militants in the town of Fallujah, Bloomberg reported.
BOTTOM LINE: The Portfolio had a relatively good day. I added a few tech positions into afternoon weakness, bringing the Portfolio's market exposure to 75% net long. Considering the news, I thought the indices held up very well. After-hours reports were very encouraging as multiple companies made positive market-moving announcements. Condoleezza Rice's testimony tomorrow may affect trading as well. I expect stocks to open higher in the morning and peak before mid-day as investors take profits ahead of the holiday weekend on terror/war fears.
Wednesday, April 07, 2004
Mid-day Update
S&P 500 1,140.67 -.65%
NASDAQ 2,044.85 -.73%
Leading Sectors
Oil Service +1.92%
Broadcasting +1.21%
Energy +.58%
Lagging Sectors
Telecom -1.27%
Compute Boxmakers -1.32%
Airlines -1.61%
Other
Crude Oil 36.25 +3.55%
Natural Gas 5.91 +1.74%
Gold 424.10 +1.02%
Base Metals 113.22 +.35%
U.S. Dollar 88.23 -.44%
10-Yr. Long-Bond Yield 4.15% unch.
VIX 16.32 +6.53%
Put/Call .64 -21.95%
NYSE Arms 1.58 +73.63%
Market Movers
STX -7.95% after lowering 3Q forecast and multiple downgrades.
TASR +7.65% after CEO told CNBC that most of the 40 deaths associated with stun gun use were a result of drug overdoses.
AA -4.03% after slight 1Q earnings shortfall and profit-taking.
VISG +21.7% as homeland security stocks continue their surge.
KMG -5.28% after announcing acquisition of WRC for $2.5B and multiple downgrades.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on AMGN, DNA, AA, DDR, EQT, DRE, ASN, EMC and UTX. GS says GCI, TRB and KRI are favorite newspaper picks ahead of earnings based on favorable visibility, leverage to ad cycle and good valuations. Goldman reiterated Buy on IBM, target $114. GS says STX miss is company-specific. GS sees another 10% downside for REITs. MNY downgraded to Underperform at GS. GS reiterated Underperform on KMG, JBLU and FRNT. The Pre Legislative Scrutiny Committee released its draft report on the UK gambling bill. Goldman says it is generally negative for casinos and slot makers looking for expansion opportunities in this market. Citi Smith Barney rates OATS a Buy ahead of quarter, $17 target. Citi downgraded STX to 3H, target $7. Citi reiterated 1H on BJ, target $30. Citi reiterated 1H on NMGA, $68 target. Citi reiterated 1M on AA, $48 target. CMI raised to Outperform at CSFB. NYT raised to Buy at Bank of America. ATRX rated Strong Buy at Raymond James. LOW raised to Strong Buy at RJ.
Mid-day News
U.S. stocks are lower mid-day on rising energy prices, violence in Iraq, weaker-than-expected earnings reports from Alcoa/Seagate and profit-taking. New Jersey will give Atlantic City casinos $92M to fund the expansion of hotels and other projects unrelated to gambling, in a deal that also will keep racetracks free of slot machines, the Star-Ledger reported. U.S. Senate Majority Leader Bill Frist plans to introduce a revised version of legislation aimed at creating a $114B asbestos compensation fund and ending litigation, the Wall Street Journal reported. Intel plans to sell processors and supporting chips that are almost lead-free by the third quarter and is continuing talks with China about a wireless-computing standard, Reuters reported. Returns on junk bonds may lag this month as above-average new supply saps investor demand for existing issues, Bloomberg reported. The European Commission trimmed its economic growth forecast, said risks to the recovery are mounting and warned that six of the 12 countries using the euro will break budget-deficit rules in 04. Wal-Mart lost a ballot initiative in Los Angeles to build a retail complex amid criticism from local officials that the development would hurt small businesses. Crude oil futures soared after the Energy Dept. reported that inventories unexpectedly fell from a 19-week high last week, Bloomberg reported.
BOTTOM LINE: The Portfolio is having a good day as one of my tech positions is up substantially and shorts fall. I have not traded today and the Portfolio is still 50% net long. Stocks are holding up relatively well considering the overnight news. Investors anticipating strong reports from GE and YHOO are likely providing a floor under equities. I may selectively add exposure into any extreme weakness in the afternoon.
NASDAQ 2,044.85 -.73%
Leading Sectors
Oil Service +1.92%
Broadcasting +1.21%
Energy +.58%
Lagging Sectors
Telecom -1.27%
Compute Boxmakers -1.32%
Airlines -1.61%
Other
Crude Oil 36.25 +3.55%
Natural Gas 5.91 +1.74%
Gold 424.10 +1.02%
Base Metals 113.22 +.35%
U.S. Dollar 88.23 -.44%
10-Yr. Long-Bond Yield 4.15% unch.
VIX 16.32 +6.53%
Put/Call .64 -21.95%
NYSE Arms 1.58 +73.63%
Market Movers
STX -7.95% after lowering 3Q forecast and multiple downgrades.
TASR +7.65% after CEO told CNBC that most of the 40 deaths associated with stun gun use were a result of drug overdoses.
AA -4.03% after slight 1Q earnings shortfall and profit-taking.
VISG +21.7% as homeland security stocks continue their surge.
KMG -5.28% after announcing acquisition of WRC for $2.5B and multiple downgrades.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on AMGN, DNA, AA, DDR, EQT, DRE, ASN, EMC and UTX. GS says GCI, TRB and KRI are favorite newspaper picks ahead of earnings based on favorable visibility, leverage to ad cycle and good valuations. Goldman reiterated Buy on IBM, target $114. GS says STX miss is company-specific. GS sees another 10% downside for REITs. MNY downgraded to Underperform at GS. GS reiterated Underperform on KMG, JBLU and FRNT. The Pre Legislative Scrutiny Committee released its draft report on the UK gambling bill. Goldman says it is generally negative for casinos and slot makers looking for expansion opportunities in this market. Citi Smith Barney rates OATS a Buy ahead of quarter, $17 target. Citi downgraded STX to 3H, target $7. Citi reiterated 1H on BJ, target $30. Citi reiterated 1H on NMGA, $68 target. Citi reiterated 1M on AA, $48 target. CMI raised to Outperform at CSFB. NYT raised to Buy at Bank of America. ATRX rated Strong Buy at Raymond James. LOW raised to Strong Buy at RJ.
Mid-day News
U.S. stocks are lower mid-day on rising energy prices, violence in Iraq, weaker-than-expected earnings reports from Alcoa/Seagate and profit-taking. New Jersey will give Atlantic City casinos $92M to fund the expansion of hotels and other projects unrelated to gambling, in a deal that also will keep racetracks free of slot machines, the Star-Ledger reported. U.S. Senate Majority Leader Bill Frist plans to introduce a revised version of legislation aimed at creating a $114B asbestos compensation fund and ending litigation, the Wall Street Journal reported. Intel plans to sell processors and supporting chips that are almost lead-free by the third quarter and is continuing talks with China about a wireless-computing standard, Reuters reported. Returns on junk bonds may lag this month as above-average new supply saps investor demand for existing issues, Bloomberg reported. The European Commission trimmed its economic growth forecast, said risks to the recovery are mounting and warned that six of the 12 countries using the euro will break budget-deficit rules in 04. Wal-Mart lost a ballot initiative in Los Angeles to build a retail complex amid criticism from local officials that the development would hurt small businesses. Crude oil futures soared after the Energy Dept. reported that inventories unexpectedly fell from a 19-week high last week, Bloomberg reported.
BOTTOM LINE: The Portfolio is having a good day as one of my tech positions is up substantially and shorts fall. I have not traded today and the Portfolio is still 50% net long. Stocks are holding up relatively well considering the overnight news. Investors anticipating strong reports from GE and YHOO are likely providing a floor under equities. I may selectively add exposure into any extreme weakness in the afternoon.
Wednesday Watch
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.
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.
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.
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