S&P 500 1,134.41 +.36%
NASDAQ 1,994.15 +1.0%
Leading Sectors
Semis +3.47%
Disk Drives +2.98%
Networking +2.75%
Lagging Sectors
HMO's -.75%
Fashion -.79%
Broadcasting -1.23%
Other
Crude Oil 38.18 -.18%
Natural Gas 6.41 -.03%
Gold 396.20 +.18%
Base Metals 106.91 -2.66%
U.S. Dollar 89.43 +.20%
10-Yr. T-note Yield 4.72% +.72%
VIX 14.31 -6.23%
Put/Call .80 +5.26%
NYSE Arms .66 -49.62%
After-hours Movers
FSII +6.16% after beating 3Q estimates substantially and raising 4Q guidance.
Recommendations
Goldman Sachs reiterated Outperform on WMT, KR and MSFT.
After-hours News
U.S. stocks finished higher today led by technology shares on optimism over telecom spending. After the close, the European Union and the U.S. have failed to reach an agreement to spur competition in the airline market before a summit in Ireland this weekend, the Financial Times said. The EU is seeking to eventually remove the limit on foreign ownership of airlines, 25% in the U.S. and 49% in the EU, to access the U.S. domestic market, the FT said. Crude oil futures rose modestly today as refinery maintenance closings boosted concern gasoline supplies will be inadequate during the peak-demand summer months. About 10 million women in the U.S. are being screened unnecessarily for cervical cancer after having had a hysterectomy, an operation that usually removes the cervix and the risk of the disease, Bloomberg reported. SBC Communications will spend as much as $6 billion building a fiber-optic network that offers digital television service as it steps up competition with cable-TV providers, Bloomberg said.
BOTTOM LINE: The Portfolio finished unchanged on a late-day rally in my base metal and telecom equipment long positions. I added a few new semiconductor and financial longs in the afternoon, leaving the Portfolio with 100% net long market exposure. One of my new longs is PMCS and I am using a $12.50 stop-loss on this position. Volume increased and the advance/decline line improved greatly during the afternoon rally. Today's outperformance by tech is the beginning of a very strong move by the sector and is positive for the overall market, in my opinion.
Tuesday, June 22, 2004
Mid-day Update
S&P 500 1,129.28 -.09%
NASDAQ 1,978.79 +.22%
Leading Sectors
Semis +2.46%
Networking +1.73%
Disk Drives +1.72%
Lagging Sectors
HMO's -.90%
Retail -.90%
Broadcasting -1.19%
Other
Crude Oil 37.80 +.10%
Natural Gas 6.37 +.49%
Gold 395.50 +.25%
Base Metals 106.91 -2.66%
U.S. Dollar 89.44 +.21%
10-Yr. T-note Yield 4.70% +.42%
VIX 15.11 -.85%
Put/Call .80 +5.26%
NYSE Arms .82 -37.40%
Market Movers
PLMO +38.2% after beating 4Q estimates and raising 1Q forecast substantially.
GLYN +49.9% after Dick's Sporting Goods(DKS) agreed to buy it for $305 million is cash.
TBUS +17.9% after announcing it received an order for security-related equipment that will be used during the Olympic Games.
DKS +14.86% after saying GLYN acquisition will boost 04 earnings.
LABS +5.11% after saying it will be added to the S&P SmallCap 600.
ALOG -8.27% after saying it received notice that L-3(LLL) had filed suit against it.
MRX -6.42% after lowering 05 e.p.s. and raising 05 sales forecasts.
FRX -5.6% after the U.K. asked for details of an unpublished study of Celexa.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on MRVL, DTV, KR, MCK, GLW, SYMC and SPG. Goldman reiterated Underperform on VRTX. Goldman expects AA to beat earnings estimates and AL to miss. Citi SmithBarney reiterated Buy on TYC, target $38. Citi reiterated Buy on ETN, target $78. Morgan Stanley cut TK to Underweight, target $38. Bank of America rated CRL Buy. QLGC raised to Buy at Merrill, target $34. NUVA rated Overweight at Lehman, target $16.
Mid-day News
U.S. stocks are quietly mixed today as strength in technology shares is being offset by weakness in retail and healthcare. The South Korean businessman being held hostage by an al-Qaeda linked militant group in Iraq was beheaded, CNBC reported. U.S. Commerce Secretary Donald Evans pressed Chinese Premier Wen Jiabao to float the yuan, curb government subsidies to industries and make clear the rules for imports and foreign investment, Bloomberg reported. The U.S. Senate passed a measure to stiffen fines against broadcasters that air indecent content, Bloomberg reported. A survey by E-Rewards found increasing problems with airlines' frequent-flier programs, 26% of respondents describing their recent experience in booking award travel as "much more difficult" or "virtually impossible," the NY Times reported. Donald Trump, who purchased 40 Wall Street for $1 million in 1995, may sell the 72-story, 1.3 million square foot building for $400 million or more, the NY Post reported. The United Auto Workers is cutting about 15% of its support staff, because of a decline in dues-paying members, the Detroit News reported. Tribune's LA Times cut about 160 positions at the newspaper, which faces lower-than-expected advertising sales, the Times reported. A recent report by UCLA forecasts the creation of 433,000 jobs in California through 05 on increased foreign trade and a rise in technology hiring, the LA Times reported. Iraq's transfer to a sovereign government next week will be an understated event because of security concerns, the Washington Times said. Iran is prepared to release eight British Royal Navy crew if the U.K. government apologizes for breaching Iranian sovereignty, Bloomberg reported. S&P 500 companies are very bullish, with positive-to-negative preannouncements at a record high according to Thomson First Call, IBD reported. Tradesports.com is showing a large jump in the chances of John Edwards being named the Democratic VP nominee.
BOTTOM LINE: The Portfolio is down slightly today as my longs are mostly lower and shorts are mixed. I have not traded today and the Portfolio is still 75% net long. Another quiet day as traders and investors remain apprehensive ahead of several market-moving events. Oil and interest rates are steady, however the ARMS Index is falling more than I would like to see. It is a positive that semis are outperforming. I expect stocks to remain mixed throughout the day.
NASDAQ 1,978.79 +.22%
Leading Sectors
Semis +2.46%
Networking +1.73%
Disk Drives +1.72%
Lagging Sectors
HMO's -.90%
Retail -.90%
Broadcasting -1.19%
Other
Crude Oil 37.80 +.10%
Natural Gas 6.37 +.49%
Gold 395.50 +.25%
Base Metals 106.91 -2.66%
U.S. Dollar 89.44 +.21%
10-Yr. T-note Yield 4.70% +.42%
VIX 15.11 -.85%
Put/Call .80 +5.26%
NYSE Arms .82 -37.40%
Market Movers
PLMO +38.2% after beating 4Q estimates and raising 1Q forecast substantially.
GLYN +49.9% after Dick's Sporting Goods(DKS) agreed to buy it for $305 million is cash.
TBUS +17.9% after announcing it received an order for security-related equipment that will be used during the Olympic Games.
DKS +14.86% after saying GLYN acquisition will boost 04 earnings.
LABS +5.11% after saying it will be added to the S&P SmallCap 600.
ALOG -8.27% after saying it received notice that L-3(LLL) had filed suit against it.
MRX -6.42% after lowering 05 e.p.s. and raising 05 sales forecasts.
FRX -5.6% after the U.K. asked for details of an unpublished study of Celexa.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on MRVL, DTV, KR, MCK, GLW, SYMC and SPG. Goldman reiterated Underperform on VRTX. Goldman expects AA to beat earnings estimates and AL to miss. Citi SmithBarney reiterated Buy on TYC, target $38. Citi reiterated Buy on ETN, target $78. Morgan Stanley cut TK to Underweight, target $38. Bank of America rated CRL Buy. QLGC raised to Buy at Merrill, target $34. NUVA rated Overweight at Lehman, target $16.
Mid-day News
U.S. stocks are quietly mixed today as strength in technology shares is being offset by weakness in retail and healthcare. The South Korean businessman being held hostage by an al-Qaeda linked militant group in Iraq was beheaded, CNBC reported. U.S. Commerce Secretary Donald Evans pressed Chinese Premier Wen Jiabao to float the yuan, curb government subsidies to industries and make clear the rules for imports and foreign investment, Bloomberg reported. The U.S. Senate passed a measure to stiffen fines against broadcasters that air indecent content, Bloomberg reported. A survey by E-Rewards found increasing problems with airlines' frequent-flier programs, 26% of respondents describing their recent experience in booking award travel as "much more difficult" or "virtually impossible," the NY Times reported. Donald Trump, who purchased 40 Wall Street for $1 million in 1995, may sell the 72-story, 1.3 million square foot building for $400 million or more, the NY Post reported. The United Auto Workers is cutting about 15% of its support staff, because of a decline in dues-paying members, the Detroit News reported. Tribune's LA Times cut about 160 positions at the newspaper, which faces lower-than-expected advertising sales, the Times reported. A recent report by UCLA forecasts the creation of 433,000 jobs in California through 05 on increased foreign trade and a rise in technology hiring, the LA Times reported. Iraq's transfer to a sovereign government next week will be an understated event because of security concerns, the Washington Times said. Iran is prepared to release eight British Royal Navy crew if the U.K. government apologizes for breaching Iranian sovereignty, Bloomberg reported. S&P 500 companies are very bullish, with positive-to-negative preannouncements at a record high according to Thomson First Call, IBD reported. Tradesports.com is showing a large jump in the chances of John Edwards being named the Democratic VP nominee.
BOTTOM LINE: The Portfolio is down slightly today as my longs are mostly lower and shorts are mixed. I have not traded today and the Portfolio is still 75% net long. Another quiet day as traders and investors remain apprehensive ahead of several market-moving events. Oil and interest rates are steady, however the ARMS Index is falling more than I would like to see. It is a positive that semis are outperforming. I expect stocks to remain mixed throughout the day.
Tuesday Watch
Earnings of Note
Company/Estimate
COMS/-.10
CBK/.27
MWD/1.06
DRI/.44
GS/1.95
GTK/.73
Splits
NOC 2-for-1
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on AGN, IR, ACS and BC.
Late-Night News
Asian indices are mostly lower as strength in China is being offset by weakness in Japan and Korea. The U.S. Financial Accounting Standards Board will hold a public hearing on Thursday into plans to require stock options to be treated as an expense, the Financial Times said. EBay may be close to completing its purchase of baazee.com, an Indian auction company, the Economic Times reported. Tiffany & Co. sued EBay over the sale of counterfeit Tiffany jewelry through the Internet auction site, the Wall Street Journal reported. The SEC will approve rules requiring mutual funds to have independent chairmen, the NY Times reported. China's measures to slow the economy are showing "clear" effects and the government is confident of meeting its projections for growth, Premier Wen Jiabao said. Goldman Sachs and Morgan Stanley have agreed to settle SEC allegations that they improperly awarded shares in companies carrying out IPOs between 1999 and 2000, the Wall Street Journal reported.
Late-Night Trading
Asian Indices -1.0% to +.50% on average.
S&P 500 indicated -.05%.
NASDAQ 100 indicated -.10%.
BOTTOM LINE: I expect U.S. stocks to open modestly higher in the morning on strong corporate earnings reports. Here are some interesting reports by Media Tenor. The Portfolio is 75% net long heading into tomorrow.
Company/Estimate
COMS/-.10
CBK/.27
MWD/1.06
DRI/.44
GS/1.95
GTK/.73
Splits
NOC 2-for-1
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on AGN, IR, ACS and BC.
Late-Night News
Asian indices are mostly lower as strength in China is being offset by weakness in Japan and Korea. The U.S. Financial Accounting Standards Board will hold a public hearing on Thursday into plans to require stock options to be treated as an expense, the Financial Times said. EBay may be close to completing its purchase of baazee.com, an Indian auction company, the Economic Times reported. Tiffany & Co. sued EBay over the sale of counterfeit Tiffany jewelry through the Internet auction site, the Wall Street Journal reported. The SEC will approve rules requiring mutual funds to have independent chairmen, the NY Times reported. China's measures to slow the economy are showing "clear" effects and the government is confident of meeting its projections for growth, Premier Wen Jiabao said. Goldman Sachs and Morgan Stanley have agreed to settle SEC allegations that they improperly awarded shares in companies carrying out IPOs between 1999 and 2000, the Wall Street Journal reported.
Late-Night Trading
Asian Indices -1.0% to +.50% on average.
S&P 500 indicated -.05%.
NASDAQ 100 indicated -.10%.
BOTTOM LINE: I expect U.S. stocks to open modestly higher in the morning on strong corporate earnings reports. Here are some interesting reports by Media Tenor. The Portfolio is 75% net long heading into tomorrow.
Monday, June 21, 2004
Monday Close
S&P 500 1,130.30 -.42%
NASDAQ 1,974.38 -.62%
Leading Sectors
Nanotechnology +2.58%
Utilities +.59%
Tobacco +.36%
Lagging Sectors
Oil Service -1.0%
Internet -1.17%
HMO's -2.10%
Other
Crude Oil 37.75 -.05%
Natural Gas 6.31 -.46%
Gold 394.40 -.03%
Base Metals 109.83 +.46%
U.S. Dollar 89.26 +.01%
10-Yr. T-note Yield 4.68% -.46%
VIX 15.26 +1.80%
Put/Call .76 -7.32%
NYSE Arms 1.31 +63.75%
After-hours Movers
GLYN +49.6% after Dick's Sporting Goods(DKS) agreed to buy it for $305 million is cash.
TBUS +22.5% after announcing it received an order for security-related equipment that will be used during the Olympic Games.
DKS +6.99% after saying GLYN acquisition will boost 04 earnings.
PLMO +19.7% after beating 4Q estimates and raising 1Q forecast substantially.
LABS +4.74% after saying it will be added to the S&P SmallCap 600.
Recommendations
TheStreet.com has a positive column on BBBY saying its sell-off is overdone. Goldman Sachs raised their long-term growth rate forecast for AVP to 15-17%, reiterated Outperform.
After-hours News
U.S. stocks finished slightly lower today on weakness in healthcare and energy shares. After the close, InterActiveCorp expects to make more acquisitions, Chairman and CEO Barry Diller said in an interview with CNBC. Erectile dysfunction in diabetic men may be a warning of "silent" heart disease, according to a study in the June 22 online version of the Circulation Journal. General Electric and Honeywell International reached separate agreements to provide equipment to Chinese companies and will sign the contracts tomorrow at a ceremony in Beijing with U.S. Commerce Secretary Donald Evans, Bloomberg reported. Cablevision, the largest cable-tv operator in the New York area, began offering a $90-a-month package of TV, telephone and Web-access service to lure customers from satellite and phone competitors, Bloomberg reported. California Governor Schwarzenegger signed new casino agreements with five Indian tribes to provide $1 billion to the state next year, meeting a campaign promise to tap gabling money to fill budget deficits, Bloomberg reported. The U.S. Senate killed an attempt by Democrats to give journalists access to the arrival of coffins carrying war dead home from Iraq, Bloomberg reported. The U.S. and the European Union agreed on terms for EU construction of its Galileo satellite navigation system, boosting a technology market that could grow to $300 billion by 2020 and benefiting companies such as Trimble Navigation and Garmin Ltd, Bloomberg reported.
BOTTOM LINE: The Portfolio finished near its highs for the day on strength in my base metal, security and telecom equipment longs and weakness in my Chinese ADR and software shorts. I added a few new healthcare IT and Oil Service shorts in the afternoon, leaving the Portfolio with 75% net long market exposure. One of my new shorts is PTEN and I am using a $33.25 stop-loss on this position. A number of stocks experienced eye-popping gains today, notwithstanding the market's overall quietly weak performance. This is positive for market psychology as it appears that good news is beginning to be rewarded again in a substantial fashion. NVEC, TASR and PLMO were a few of the highly-shorted companies that reported great news today and rose significantly. If my Portfolio were positioned substantially short right now I would be very worried over this type of action. As well, interest rates and energy prices continue to head lower which makes me more confident that the market is consolidating before a significant move up within the next few weeks.
NASDAQ 1,974.38 -.62%
Leading Sectors
Nanotechnology +2.58%
Utilities +.59%
Tobacco +.36%
Lagging Sectors
Oil Service -1.0%
Internet -1.17%
HMO's -2.10%
Other
Crude Oil 37.75 -.05%
Natural Gas 6.31 -.46%
Gold 394.40 -.03%
Base Metals 109.83 +.46%
U.S. Dollar 89.26 +.01%
10-Yr. T-note Yield 4.68% -.46%
VIX 15.26 +1.80%
Put/Call .76 -7.32%
NYSE Arms 1.31 +63.75%
After-hours Movers
GLYN +49.6% after Dick's Sporting Goods(DKS) agreed to buy it for $305 million is cash.
TBUS +22.5% after announcing it received an order for security-related equipment that will be used during the Olympic Games.
DKS +6.99% after saying GLYN acquisition will boost 04 earnings.
PLMO +19.7% after beating 4Q estimates and raising 1Q forecast substantially.
LABS +4.74% after saying it will be added to the S&P SmallCap 600.
Recommendations
TheStreet.com has a positive column on BBBY saying its sell-off is overdone. Goldman Sachs raised their long-term growth rate forecast for AVP to 15-17%, reiterated Outperform.
After-hours News
U.S. stocks finished slightly lower today on weakness in healthcare and energy shares. After the close, InterActiveCorp expects to make more acquisitions, Chairman and CEO Barry Diller said in an interview with CNBC. Erectile dysfunction in diabetic men may be a warning of "silent" heart disease, according to a study in the June 22 online version of the Circulation Journal. General Electric and Honeywell International reached separate agreements to provide equipment to Chinese companies and will sign the contracts tomorrow at a ceremony in Beijing with U.S. Commerce Secretary Donald Evans, Bloomberg reported. Cablevision, the largest cable-tv operator in the New York area, began offering a $90-a-month package of TV, telephone and Web-access service to lure customers from satellite and phone competitors, Bloomberg reported. California Governor Schwarzenegger signed new casino agreements with five Indian tribes to provide $1 billion to the state next year, meeting a campaign promise to tap gabling money to fill budget deficits, Bloomberg reported. The U.S. Senate killed an attempt by Democrats to give journalists access to the arrival of coffins carrying war dead home from Iraq, Bloomberg reported. The U.S. and the European Union agreed on terms for EU construction of its Galileo satellite navigation system, boosting a technology market that could grow to $300 billion by 2020 and benefiting companies such as Trimble Navigation and Garmin Ltd, Bloomberg reported.
BOTTOM LINE: The Portfolio finished near its highs for the day on strength in my base metal, security and telecom equipment longs and weakness in my Chinese ADR and software shorts. I added a few new healthcare IT and Oil Service shorts in the afternoon, leaving the Portfolio with 75% net long market exposure. One of my new shorts is PTEN and I am using a $33.25 stop-loss on this position. A number of stocks experienced eye-popping gains today, notwithstanding the market's overall quietly weak performance. This is positive for market psychology as it appears that good news is beginning to be rewarded again in a substantial fashion. NVEC, TASR and PLMO were a few of the highly-shorted companies that reported great news today and rose significantly. If my Portfolio were positioned substantially short right now I would be very worried over this type of action. As well, interest rates and energy prices continue to head lower which makes me more confident that the market is consolidating before a significant move up within the next few weeks.
Mid-day Update
S&P 500 1,136.11 +.10%
NASDAQ 1,9990.84 +.21%
Leading Sectors
Nanotechnology +2.90%
Utilities +1.02%
Semis +.91%
Lagging Sectors
Oil Service -.68%
Telecom -.78%
HMO's -1.17%
Other
Crude Oil 37.80 -3.08%
Natural Gas 6.33 -3.07%
Gold 394.20 -.38%
Base Metals 109.83 +.46%
U.S. Dollar 89.28 +.22%
10-Yr. T-note Yield 4.68% -.55%
VIX 15.03 +.27%
Put/Call .68 -17.07%
NYSE Arms 1.02 +27.50%
Market Movers
BFD +26.0% after announcing its acquisition by Banknorth for $195 million.
NVEC +30.9% after saying the U.S. Patent and Trademark Office issued the company a patent for an innovation type of MRAM.
OXM +18.78% after saying it agreed to buy Ben Sherman Ltd. for $146 million in cash.
TASR +17.58% after increasing it annual revenue growth forecast from 100% to 150% for 04.
SOTR +13.62% after agreeing to be acquired by Wachovia for $14.3 billion.
CPG +11.7% after agreeing to be acquired by Simon Property Group for $3.5 billion in cash and stock.
BBBB +10.7% on continuing strength after IPO.
IMDC +6.55% after settling a patent lawsuit with Ethicon Endo-Surgery for $17.3 million.
EASI +5.28% after saying it is in full-scale production of its armored cab design for the U.S. Army's Family of Medium Tactical Vehicles.
MIL +5.27% after positive Barron's mention.
LABS -8.58% after saying it plans to sell $90 million in convertible debt.
CYBX -4.67% on profit-taking.
ASKJ -5.1% on insider selling.
SOHU -7.33% on crackdown by Chinese government on online content and YHOO entering Chinese search market.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on SLR, PAYX, KO, PEP, STZ and ATYT. Goldman reiterated Underperform on PBG and RKY. Citi SmithBarney said to Buy MOT, target $25. Citi says their recent Semi Purchasing Manager survey was better than expectations and has positive implications for LLTC, MXIM, INTC, AMD and NSM. Citi reiterated Sell on MU, target $12. ARXX raised to Buy at Deutsche Bank, target $16.
Mid-day News
U.S. stocks are quietly higher today as investors continue to fear making big bets ahead of several market-moving events over the next couple of weeks. Iran seized three British navy vessels that reportedly entered the country's territorial waters, Agence France-Presse said. U.S. officials have been spending about $2.5 billion in Iraqi oil revenue on programs such as police cars and uniforms, as well as repairing schools, the NY Times reported. Abiomed, the maker of the experimental artificial heart, expects to become profitable by March 31 and to have annual revenue of $500 million by 2011, the Boston Globe reported. The leaders of the largest labor unions in the U.S. are considering reducing the number of unions to 15 from 65 to better focus their organizing and bargaining efforts, the LA Times reported. The AFL-CIO is undertaking its earliest and largest "get-out-the-vote" campaign ever for Democratic presidential contender John Kerry, the Washington Post reported. Geely Group this year plans to become the first Chinese automaker to sell cars in the U.S., Automotive News reported. Wal-Mart said June's sales are rising around the low end of its recent forecast, Bloomberg reported. Motorola expects to raise as much as $2.73 billion in an IPO of its Freescale Semiconductor unit, Bloomberg said. A privately funded and constructed spaceship was launched today from California's Mojave Desert on a mission to become the first non-governmental craft to leave the Earth's atmosphere, Bloomberg reported. The U.S. SEC is moving ahead with plans to bring hedge funds under greater government oversight over the opposition of most of the $800 billion industry, Bloomberg reported. Crude oil futures are falling as Iraq resumed partial exports through one of two pipelines shut after an attack early last week, Bloomberg said.
BOTTOM LINE: The Portfolio is having a very good day today as my security and telecom equipment longs are rising and short Chinese ADRs are falling. I added a few new technology longs this morning, bringing the Portfolio to 100% net long market exposure. The fundamentals are improving today on an acceleration in merger activity, falling energy prices and declining interest rates. I expect U.S. stocks to rise modestly into the close on short-covering.
NASDAQ 1,9990.84 +.21%
Leading Sectors
Nanotechnology +2.90%
Utilities +1.02%
Semis +.91%
Lagging Sectors
Oil Service -.68%
Telecom -.78%
HMO's -1.17%
Other
Crude Oil 37.80 -3.08%
Natural Gas 6.33 -3.07%
Gold 394.20 -.38%
Base Metals 109.83 +.46%
U.S. Dollar 89.28 +.22%
10-Yr. T-note Yield 4.68% -.55%
VIX 15.03 +.27%
Put/Call .68 -17.07%
NYSE Arms 1.02 +27.50%
Market Movers
BFD +26.0% after announcing its acquisition by Banknorth for $195 million.
NVEC +30.9% after saying the U.S. Patent and Trademark Office issued the company a patent for an innovation type of MRAM.
OXM +18.78% after saying it agreed to buy Ben Sherman Ltd. for $146 million in cash.
TASR +17.58% after increasing it annual revenue growth forecast from 100% to 150% for 04.
SOTR +13.62% after agreeing to be acquired by Wachovia for $14.3 billion.
CPG +11.7% after agreeing to be acquired by Simon Property Group for $3.5 billion in cash and stock.
BBBB +10.7% on continuing strength after IPO.
IMDC +6.55% after settling a patent lawsuit with Ethicon Endo-Surgery for $17.3 million.
EASI +5.28% after saying it is in full-scale production of its armored cab design for the U.S. Army's Family of Medium Tactical Vehicles.
MIL +5.27% after positive Barron's mention.
LABS -8.58% after saying it plans to sell $90 million in convertible debt.
CYBX -4.67% on profit-taking.
ASKJ -5.1% on insider selling.
SOHU -7.33% on crackdown by Chinese government on online content and YHOO entering Chinese search market.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on SLR, PAYX, KO, PEP, STZ and ATYT. Goldman reiterated Underperform on PBG and RKY. Citi SmithBarney said to Buy MOT, target $25. Citi says their recent Semi Purchasing Manager survey was better than expectations and has positive implications for LLTC, MXIM, INTC, AMD and NSM. Citi reiterated Sell on MU, target $12. ARXX raised to Buy at Deutsche Bank, target $16.
Mid-day News
U.S. stocks are quietly higher today as investors continue to fear making big bets ahead of several market-moving events over the next couple of weeks. Iran seized three British navy vessels that reportedly entered the country's territorial waters, Agence France-Presse said. U.S. officials have been spending about $2.5 billion in Iraqi oil revenue on programs such as police cars and uniforms, as well as repairing schools, the NY Times reported. Abiomed, the maker of the experimental artificial heart, expects to become profitable by March 31 and to have annual revenue of $500 million by 2011, the Boston Globe reported. The leaders of the largest labor unions in the U.S. are considering reducing the number of unions to 15 from 65 to better focus their organizing and bargaining efforts, the LA Times reported. The AFL-CIO is undertaking its earliest and largest "get-out-the-vote" campaign ever for Democratic presidential contender John Kerry, the Washington Post reported. Geely Group this year plans to become the first Chinese automaker to sell cars in the U.S., Automotive News reported. Wal-Mart said June's sales are rising around the low end of its recent forecast, Bloomberg reported. Motorola expects to raise as much as $2.73 billion in an IPO of its Freescale Semiconductor unit, Bloomberg said. A privately funded and constructed spaceship was launched today from California's Mojave Desert on a mission to become the first non-governmental craft to leave the Earth's atmosphere, Bloomberg reported. The U.S. SEC is moving ahead with plans to bring hedge funds under greater government oversight over the opposition of most of the $800 billion industry, Bloomberg reported. Crude oil futures are falling as Iraq resumed partial exports through one of two pipelines shut after an attack early last week, Bloomberg said.
BOTTOM LINE: The Portfolio is having a very good day today as my security and telecom equipment longs are rising and short Chinese ADRs are falling. I added a few new technology longs this morning, bringing the Portfolio to 100% net long market exposure. The fundamentals are improving today on an acceleration in merger activity, falling energy prices and declining interest rates. I expect U.S. stocks to rise modestly into the close on short-covering.
Monday Watch
Earnings of Note
Company/Estimate
PDG/.00
WAG/.32
APOG/.08
WWE/.19
Splits
CACH 3-for-2
PG 2-for-1
WGR 2-for-1
Economic Data
None of note.
Weekend Recommendations
Forbes on Fox had guests that were positive on APC, FCX, MMC, AH, DHB and IDNX. Bulls and Bears had guests that were positive on LYG, OXY, HPQ, NMG/A, TARO and mixed on ATYT and STX. Cashin' In had guests that were positive on SU, UPL,NOC and mixed on DEO. Louis Rukeyser's Wall Street had guests that were positive on CVX, CNF, FMC, MET, MSFT, TYC, MRK, AES and EP. Wall St. Week w/Fortune had guests that were positive on FRX, AGN, ELN, HCR, BEV and KIND. Barron's had a positive column on MIL. Barron's mid-year roundtable is positive on stocks for the second half of the year. Goldman Sachs reiterated Outperform on EBAY and raised 2Q estimates. Goldman said FLEX is oversold and to buy for a trade. Goldman reiterated Outperform on ATYT ahead of earnings report. ElectronicNews has a positive article on the semiconductor industry.
Weekend News
China will cut Internet access to unlicensed Internet cafes and strengthen its control over online chat rooms as part of a crackdown on "unhealthy" material on the Web, Xinhua reported. Baghdad's raw sewage began receiving treatment late last month for the first time in as many as 15 years, though officials made no fanfare about it for fear of the treatment plant being bombed, the NY Times reported. Telephone, cable and satellite prices will decline as they compete more with each other and fail to meet their growth goals, Barron's reported. Former President Bill Clinton, in a memoir to be released Tuesday, said his biggest disappointment while in office was his failure to bring Osama bin Laden to justice, Newsweek reported. Clinton lost his temper for several minutes during an interview that is scheduled to run Tuesday with the BBC's David Dimbleby when he was repeatedly questioned about his affair with Monica Lewinsky, the Sunday Telegraph reported. Las Vegas Sands, which operates the Venetian Casino Resort in Nevada, may have a market value of at least $4 billion after an IPO, Barron's reported. Al-Qaeda confirmed the death of the terrorist group's leader in Saudi Arabia, Agence France-Presse reported. Oil supplies resumed to Iraq's southern port of Basra after repairs were completed to a pipeline sabotaged by insurgents last week, the AP said. Exxon Mobil won a contract worth up to $1 billion to boost output from the Upper Zakum offshore oil field by a third over two years, Gulf News reported. Time Warner, whose profit has risen since Parsons became CEO in May 02, still faces U.S. federal accounting probes that began about two years ago, the NY Times reported. Pakistan and Saudi Arabia helped set the stage for the Sept. 11 attacks by cutting deals with Afghanistan's Taliban and Osama bin Laden that allowed the network to flourish, the LA Times reported. U.S. Justice Dept. prosecutors plan to ask a grand jury to return a fraud indictment against Enron's former Chairman Ken Lay, the Houston Chronicle reported. GE will offer financing products direct to consumers under the brand GE Money, the Financial Times reported. Chicago Sun-Times circulation officials set up fake sales accounts and told distributors to throw out newspapers to boost circulation numbers, the Wall Street Journal reported. The American Journal of Psychiatry published a positive study about Forest Lab's Celexa without acknowledging a negative one known to exist, the Wall Street Journal said. U.S. Treasury Secretary Snow said private sector forecasts that the U.S. economy will continue to generate 200,000 to 300,000 jobs a month this year are "reasonable," Bloomberg reported. Copper prices will probably rise for the second week in London and NY as U.S. demand for metal grows and inventories shrink, according to a Bloomberg survey. The South Korean government said it will stick to its plans to deploy 3,000 more troops in Iraq this summer, rejecting an ultimatum from Muslim militants who are threatening to behead a South Korean hostage unless the nation's soldiers are withdrawn, Bloomberg said.
Late-Night Trading
Asian indices are mixed, -.25% to +1.50% on average.
S&P 500 indicated +.27%.
NASDAQ 100 indicated +.51%.
BOTTOM LINE: I expect U.S. stocks to open higher tomorrow as strength in Japan and declining oil prices boost investor sentiment. One of the new longs I added Friday afternoon was PD and I am using a $70 stop-loss on this position. The Portfolio is 75% net long heading into the week.
Company/Estimate
PDG/.00
WAG/.32
APOG/.08
WWE/.19
Splits
CACH 3-for-2
PG 2-for-1
WGR 2-for-1
Economic Data
None of note.
Weekend Recommendations
Forbes on Fox had guests that were positive on APC, FCX, MMC, AH, DHB and IDNX. Bulls and Bears had guests that were positive on LYG, OXY, HPQ, NMG/A, TARO and mixed on ATYT and STX. Cashin' In had guests that were positive on SU, UPL,NOC and mixed on DEO. Louis Rukeyser's Wall Street had guests that were positive on CVX, CNF, FMC, MET, MSFT, TYC, MRK, AES and EP. Wall St. Week w/Fortune had guests that were positive on FRX, AGN, ELN, HCR, BEV and KIND. Barron's had a positive column on MIL. Barron's mid-year roundtable is positive on stocks for the second half of the year. Goldman Sachs reiterated Outperform on EBAY and raised 2Q estimates. Goldman said FLEX is oversold and to buy for a trade. Goldman reiterated Outperform on ATYT ahead of earnings report. ElectronicNews has a positive article on the semiconductor industry.
Weekend News
China will cut Internet access to unlicensed Internet cafes and strengthen its control over online chat rooms as part of a crackdown on "unhealthy" material on the Web, Xinhua reported. Baghdad's raw sewage began receiving treatment late last month for the first time in as many as 15 years, though officials made no fanfare about it for fear of the treatment plant being bombed, the NY Times reported. Telephone, cable and satellite prices will decline as they compete more with each other and fail to meet their growth goals, Barron's reported. Former President Bill Clinton, in a memoir to be released Tuesday, said his biggest disappointment while in office was his failure to bring Osama bin Laden to justice, Newsweek reported. Clinton lost his temper for several minutes during an interview that is scheduled to run Tuesday with the BBC's David Dimbleby when he was repeatedly questioned about his affair with Monica Lewinsky, the Sunday Telegraph reported. Las Vegas Sands, which operates the Venetian Casino Resort in Nevada, may have a market value of at least $4 billion after an IPO, Barron's reported. Al-Qaeda confirmed the death of the terrorist group's leader in Saudi Arabia, Agence France-Presse reported. Oil supplies resumed to Iraq's southern port of Basra after repairs were completed to a pipeline sabotaged by insurgents last week, the AP said. Exxon Mobil won a contract worth up to $1 billion to boost output from the Upper Zakum offshore oil field by a third over two years, Gulf News reported. Time Warner, whose profit has risen since Parsons became CEO in May 02, still faces U.S. federal accounting probes that began about two years ago, the NY Times reported. Pakistan and Saudi Arabia helped set the stage for the Sept. 11 attacks by cutting deals with Afghanistan's Taliban and Osama bin Laden that allowed the network to flourish, the LA Times reported. U.S. Justice Dept. prosecutors plan to ask a grand jury to return a fraud indictment against Enron's former Chairman Ken Lay, the Houston Chronicle reported. GE will offer financing products direct to consumers under the brand GE Money, the Financial Times reported. Chicago Sun-Times circulation officials set up fake sales accounts and told distributors to throw out newspapers to boost circulation numbers, the Wall Street Journal reported. The American Journal of Psychiatry published a positive study about Forest Lab's Celexa without acknowledging a negative one known to exist, the Wall Street Journal said. U.S. Treasury Secretary Snow said private sector forecasts that the U.S. economy will continue to generate 200,000 to 300,000 jobs a month this year are "reasonable," Bloomberg reported. Copper prices will probably rise for the second week in London and NY as U.S. demand for metal grows and inventories shrink, according to a Bloomberg survey. The South Korean government said it will stick to its plans to deploy 3,000 more troops in Iraq this summer, rejecting an ultimatum from Muslim militants who are threatening to behead a South Korean hostage unless the nation's soldiers are withdrawn, Bloomberg said.
Late-Night Trading
Asian indices are mixed, -.25% to +1.50% on average.
S&P 500 indicated +.27%.
NASDAQ 100 indicated +.51%.
BOTTOM LINE: I expect U.S. stocks to open higher tomorrow as strength in Japan and declining oil prices boost investor sentiment. One of the new longs I added Friday afternoon was PD and I am using a $70 stop-loss on this position. The Portfolio is 75% net long heading into the week.
Subscribe to:
Posts (Atom)