S&P 500 1,121.84 -.23%
NASDAQ 1,925.17 -.19%
Leading Sectors
Homebuilders +1.26%
I-Banks +.77%
Utilities +.70%
Lagging Sectors
Semis -1.32%
Oil Service -1.45%
Iron/Steel -1.73%
Other
Crude Oil 52.20 -.59%
Natural Gas 6.61 -.32%
Gold 416.60 unch.
Base Metals 123.37 -1.51%
U.S. Dollar 87.94 +.46%
10-Yr. T-note Yield 4.09% -.80%
VIX 15.05 +2.31%
Put/Call .99 +28.57%
NYSE Arms 1.75 +44.63%
After-hours Movers
INTC +3.40% on bargain-hunting after meeting 3Q estimate and lowering 4Q guidance.
ASKJ +3.46% on positive YHOO earnings report.
STM +5.36% on optimism over INTC report.
NABI +4.81% after saying that StaphVAX received Fast Track Designation from the FDA.
Recommendations
Goldman reiterated Outperform on MER, MDT and YHOO.
After-hours News
U.S. stocks finished slightly lower today after a late-afternoon rebound on optimism over declining energy prices. After the close, Walt Disney's Hong Kong Disneyland will open Oct. 14 next year, the Wall Street Journal reported. The Business Council corrected a survey of CEOs, saying the placement of numbers in the wrong column in a spreadsheet caused their forecast to show the U.S. economy would expand no more than 2% next year. The survey, prepared by the chief economist of Fannie Mae, really showed the U.S. economy may expand 4.5% in 2005, Bloomberg reported. U.S. truckers including JB Hunt Transport Services and railroads such as Union Pacific are hiring more workers and asking customers to spread out shipments because of record demand for cargo hauling, Bloomberg said. Intel said third-quarter profit rose 15%, as record stockpile of computer chips increased expenses, Bloomberg said. Yahoo! said third-quarter profit more than tripled and sales more than doubled on higher advertising revenue and a gain from selling shares of Google, Bloomberg said.
BOTTOM LINE: The Portfolio finished lower today on weakness in my steel, Chinese ADR and Internet longs. I added a few new longs in the afternoon, leaving the Portfolio 100% net long. One of my new longs is PLMO and I am using a $28.95 stop-loss on the position. The tone of the market improved greatly during the afternoon as the advance/decline line rose and volume increased. As well, commodity prices declined, the US dollar gained, interest rates fell and measures of investor anxiety rose today. The market is also responding well to Intel and Yahoo's earnings in after-hours.
Tuesday, October 12, 2004
Mid-day Update
S&P 500 1,118.46 -.53%
NASDAQ 1,916.88 -.67%
Leading Sectors
Homebuilders +.26%
Tobacco +.22%
I-Banks +.11%
Lagging Sectors
Papers -1.34%
Iron/Steel -1.52%
Semis -2.07%
Other
Crude Oil 53.43 -.39%
Natural Gas 6.74 -3.62%
Gold 415.80 -1.80%
Base Metals 123.37 -1.51%
U.S. Dollar 88.09 +.63%
10-Yr. T-note Yield 4.08% -1.12%
VIX 15.22 +3.47%
Put/Call .88 +14.29%
NYSE Arms 2.21 +82.64%
Market Movers
STT -5.9% after missing 3Q estimates.
SNDK -3.9% after Citi SmithBarney downgrade to Sell.
TZOO +7.1% on strong 3Q earnings.
INFY +5.3% on strong 2Q earnings and positive 3Q guidance.
CTV -18.0% after reaffirming 3Q and lowering 4Q forecasts.
SFL -8.7% on Citi SmithBarney downgrade to Sell and profit-taking.
FAST -6.7% after slightly missing 3Q estimates.
OSK -5.7% after losing out on a $1.97 billion contract to build support vehicles for the U.K.'s Ministry of Defense.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on UNH, MER, NFP, GCI, AHC, AMT, BBY, XRX and IBM. Goldman reiterated Underperform on EK and DYN. Citi SmithBarney said to Buy DPZ ahead of earnings, target $21. Citi downgraded SNDK to Sell, target $25. Citi reiterated Buy on URBN, target $43. Citi downgraded SFL to Sell, target $16. Citi reiterated Buy on NPSP, target $30. WFMI cut to Undeweight on JP Morgan. ZION rated Buy at Deutsche Bank, target $71. OS rated Buy at Jeffries, target $22. MI rated Buy at Deutsche Bank, target $46. WOR cut to Underweight at Prudential, target $15. PSUN raised to Outperform at Bear Stearns.
Mid-day News
U.S. stocks are modestly lower mid-day on continuing fears over high energy prices and earnings worries. Anheuser-Busch will have a strong position in the Chinese market after its acquisition of Harbin Brewery Group, the No. 4 Chinese beer-maker, the Wall Street Journal reported. General Maritime, the second-largest owner of mid-sized oil tankers, expects freight rates to stay near record highs as scrapping of single-hulled vessels reduces supplies, Bloomberg said. DreamWorks SKG plans to sell shares to the public either this month or in early November, the NY Times said. EBay is working to repair its PayPal service, which has had some disruptions following a monthly software upgrade on Oct. 8, the AP said. California voters are likely to pass a ballot measure that would generate as much as $800 million annually for mental health services by taxing the state's millionaires, the LA Times reported. President Bush indicated he might allow imports from Canada of cheaper prescription drugs that his administration has opposed, the NY Times reported. Chicago-area home foreclosures declined 8% from 2002-2003, the first time the delinquency actions have decreased in a decade, the Chicago Sun-Times reported. The Fed's pace of rate increases will probably be "a lot slower" after an expected rate boost next month, said Paul McCulley, a managing director at PIMCO. Merrill Lynch said third-quarter profit fell 8% as an industry-wide slump in stock trading hurt revenue, Bloomberg reported. Chiron, which on Oct. 5 said it wouldn't sell influenza vaccine in the U.S. this season, said it received a grand jury subpoena from the U.S. Attorney's office. Johnson & Johnson said third-quarter profit rose 13% on higher sales of the anti-psychotic drug Risperdal and Remicade for rheumatoid arthritis, Bloomberg reported. The Afghan election was "overwhelming positive" and brings the country closer to a "vigorous democracy," a senior UN official told the Security Council. "The impressive participation, the enthusiasm and pride of the women and men voting for the first time, the peaceful and orderly environment in which the electoral operation unfolded made it a very special event." Crude oil is declining, after reaching $54.45/bbl. in NY, on speculation that demand doesn't warrant prices at this level, Bloomberg reported.
BOTTOM LINE: The Portfolio is lower mid-day on weakness in my shipping, base metal and internet longs. I have not traded today and the Portfolio is still 75% net long. The tone of the market is negative today, however measures of investor anxiety are rising again, which is a positive. I continue to believe the major indices are just consolidating recent gains before another meaningful push higher later this month. U.S. economic growth should accelerate in November and investors will begin to anticipate this over the next couple of weeks. The IEA today said, after oil demand increases 3.4% this year, crude demand will fall next year due to slowing world economic growth and China's move to natural gas. Slowing demand and increased production should push crude prices back to the $30-40/bbl. range next year. I expect stocks to trade mixed-to-higher into the close.
NASDAQ 1,916.88 -.67%
Leading Sectors
Homebuilders +.26%
Tobacco +.22%
I-Banks +.11%
Lagging Sectors
Papers -1.34%
Iron/Steel -1.52%
Semis -2.07%
Other
Crude Oil 53.43 -.39%
Natural Gas 6.74 -3.62%
Gold 415.80 -1.80%
Base Metals 123.37 -1.51%
U.S. Dollar 88.09 +.63%
10-Yr. T-note Yield 4.08% -1.12%
VIX 15.22 +3.47%
Put/Call .88 +14.29%
NYSE Arms 2.21 +82.64%
Market Movers
STT -5.9% after missing 3Q estimates.
SNDK -3.9% after Citi SmithBarney downgrade to Sell.
TZOO +7.1% on strong 3Q earnings.
INFY +5.3% on strong 2Q earnings and positive 3Q guidance.
CTV -18.0% after reaffirming 3Q and lowering 4Q forecasts.
SFL -8.7% on Citi SmithBarney downgrade to Sell and profit-taking.
FAST -6.7% after slightly missing 3Q estimates.
OSK -5.7% after losing out on a $1.97 billion contract to build support vehicles for the U.K.'s Ministry of Defense.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on UNH, MER, NFP, GCI, AHC, AMT, BBY, XRX and IBM. Goldman reiterated Underperform on EK and DYN. Citi SmithBarney said to Buy DPZ ahead of earnings, target $21. Citi downgraded SNDK to Sell, target $25. Citi reiterated Buy on URBN, target $43. Citi downgraded SFL to Sell, target $16. Citi reiterated Buy on NPSP, target $30. WFMI cut to Undeweight on JP Morgan. ZION rated Buy at Deutsche Bank, target $71. OS rated Buy at Jeffries, target $22. MI rated Buy at Deutsche Bank, target $46. WOR cut to Underweight at Prudential, target $15. PSUN raised to Outperform at Bear Stearns.
Mid-day News
U.S. stocks are modestly lower mid-day on continuing fears over high energy prices and earnings worries. Anheuser-Busch will have a strong position in the Chinese market after its acquisition of Harbin Brewery Group, the No. 4 Chinese beer-maker, the Wall Street Journal reported. General Maritime, the second-largest owner of mid-sized oil tankers, expects freight rates to stay near record highs as scrapping of single-hulled vessels reduces supplies, Bloomberg said. DreamWorks SKG plans to sell shares to the public either this month or in early November, the NY Times said. EBay is working to repair its PayPal service, which has had some disruptions following a monthly software upgrade on Oct. 8, the AP said. California voters are likely to pass a ballot measure that would generate as much as $800 million annually for mental health services by taxing the state's millionaires, the LA Times reported. President Bush indicated he might allow imports from Canada of cheaper prescription drugs that his administration has opposed, the NY Times reported. Chicago-area home foreclosures declined 8% from 2002-2003, the first time the delinquency actions have decreased in a decade, the Chicago Sun-Times reported. The Fed's pace of rate increases will probably be "a lot slower" after an expected rate boost next month, said Paul McCulley, a managing director at PIMCO. Merrill Lynch said third-quarter profit fell 8% as an industry-wide slump in stock trading hurt revenue, Bloomberg reported. Chiron, which on Oct. 5 said it wouldn't sell influenza vaccine in the U.S. this season, said it received a grand jury subpoena from the U.S. Attorney's office. Johnson & Johnson said third-quarter profit rose 13% on higher sales of the anti-psychotic drug Risperdal and Remicade for rheumatoid arthritis, Bloomberg reported. The Afghan election was "overwhelming positive" and brings the country closer to a "vigorous democracy," a senior UN official told the Security Council. "The impressive participation, the enthusiasm and pride of the women and men voting for the first time, the peaceful and orderly environment in which the electoral operation unfolded made it a very special event." Crude oil is declining, after reaching $54.45/bbl. in NY, on speculation that demand doesn't warrant prices at this level, Bloomberg reported.
BOTTOM LINE: The Portfolio is lower mid-day on weakness in my shipping, base metal and internet longs. I have not traded today and the Portfolio is still 75% net long. The tone of the market is negative today, however measures of investor anxiety are rising again, which is a positive. I continue to believe the major indices are just consolidating recent gains before another meaningful push higher later this month. U.S. economic growth should accelerate in November and investors will begin to anticipate this over the next couple of weeks. The IEA today said, after oil demand increases 3.4% this year, crude demand will fall next year due to slowing world economic growth and China's move to natural gas. Slowing demand and increased production should push crude prices back to the $30-40/bbl. range next year. I expect stocks to trade mixed-to-higher into the close.
Tuesday Watch
Earnings of Note
Company/Estimate
FAST/.47
GCI/1.18
INTC/.27
JNJ/.76
LLTC/.32
MER/.92
YHOO/.09
TZOO/.08
STT/.65
SONC/.33
Splits
None of note.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on YHOO and UST. Goldman reiterated Underperform on RAI.
Late-Night News
Asian indices are lower on weakness in chipmakers and electronics companies in the region. Microsoft plans to spend $20 billion over the next 6 years on digital media innovation, the Times of London reported. The Saudi Arabian government banned women from voting or running in its first nationwide elections, the AP reported. Some U.S. companies are already planning investments based on a recent bill Congress approved that would provide $76.5 billion in tax breaks for manufacturers, the Wall Street Journal reported. India may sell up to 10% of profitable state-run companies, the Economic Times reported. China's inflation will start to ease rapidly this quarter as growth in food prices abates, the Shanghai Securities News reported. JP Morgan and Morgan Stanley offered to help rescue Daiei, Japan's third-largest retailer, the Nihon Keizai newspaper reported.
Late-Night Trading
Asian Indices are -1.50% to -.25% on average.
S&P 500 indicated -.13%.
NASDAQ 100 indicated -.28%
BOTTOM LINE: I expect U.S. equities to open modestly lower in the morning on weakness in technology shares and another up-tick in oil prices. U.S. stocks should finish their recent consolidation within the next 2 weeks and head meaningfully higher through year-end. Thus, I am looking to add to favorite longs on any excessive weakness. The Portfolio is 75% net long heading into tomorrow.
Company/Estimate
FAST/.47
GCI/1.18
INTC/.27
JNJ/.76
LLTC/.32
MER/.92
YHOO/.09
TZOO/.08
STT/.65
SONC/.33
Splits
None of note.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on YHOO and UST. Goldman reiterated Underperform on RAI.
Late-Night News
Asian indices are lower on weakness in chipmakers and electronics companies in the region. Microsoft plans to spend $20 billion over the next 6 years on digital media innovation, the Times of London reported. The Saudi Arabian government banned women from voting or running in its first nationwide elections, the AP reported. Some U.S. companies are already planning investments based on a recent bill Congress approved that would provide $76.5 billion in tax breaks for manufacturers, the Wall Street Journal reported. India may sell up to 10% of profitable state-run companies, the Economic Times reported. China's inflation will start to ease rapidly this quarter as growth in food prices abates, the Shanghai Securities News reported. JP Morgan and Morgan Stanley offered to help rescue Daiei, Japan's third-largest retailer, the Nihon Keizai newspaper reported.
Late-Night Trading
Asian Indices are -1.50% to -.25% on average.
S&P 500 indicated -.13%.
NASDAQ 100 indicated -.28%
BOTTOM LINE: I expect U.S. equities to open modestly lower in the morning on weakness in technology shares and another up-tick in oil prices. U.S. stocks should finish their recent consolidation within the next 2 weeks and head meaningfully higher through year-end. Thus, I am looking to add to favorite longs on any excessive weakness. The Portfolio is 75% net long heading into tomorrow.
Monday, October 11, 2004
Monday Close
S&P 500 1,124.39 +.20%
NASDAQ 1,928.76 +.46%
Leading Sectors
Biotech +1.08%
Internet +.73%
Software +.72%
Lagging Sectors
Energy -.95%
Airlines -.99%
Oil Service -2.62%
Other
Crude Oil 53.56 +.47%
Natural Gas 6.85 -4.30%
Gold 423.30 -.28%
Base Metals 125.26 -.11%
U.S. Dollar 87.54 +.03%
10-Yr. T-note Yield 4.13% +.05%
VIX 14.71 -2.26%
Put/Call .77 -23.0%
NYSE Arms 1.21 -49.79%
After-hours Movers
CTV -20.7% after reaffirming 3Q and lowering 4Q forecasts.
Recommendations
Goldman Sachs reiterated Outperform on BBY, ALK and SRE.
After-hours News
U.S. stocks finished quietly higher today on short-covering after Friday's Presidential debate. Motorola canceled a plan to develop televisions based on liquid crystal display technology for sale in China and North America, CNet said. General Motors plans to say Thursday that it will cut as many as 12,000 jobs from its European workforce to reduce costs by $500 million a year, the Financial Times reported. Computer Sciences won a $1.35 billion contract to manage phone and computer networks for Ascension Health, the biggest Catholic and non-profit heath system in the U.S. The dollar fell to a one-month low against the yen on speculation the Fed will skip an increase to it interest-rate target at one of two remaining meetings this year, Bloomberg reported. President Bush and Senator Kerry's second debate on Oct. 8 was watched by about 46.7 million tv viewers, Bloomberg said. The U.S. may need to coordinate flu vaccine supplies with other countries as the consolidation of the industry leaves nations reliant on a few companies, the FDA said.
BOTTOM LINE: The Portfolio finished slightly higher today as my rising alternative energy and networking longs more than offset my declining copper and security longs. I exited a copper long in the afternoon and added PMCS long, thus leaving the Portfolio 75% net long. I am using an $8.70 stop-loss on PMCS. Today's action was pretty non-eventful for the most part. Volume was about 25% lower than recent averages. It is good to see natural gas beginning to fall, however measures of investor complacency rose. Oil Service stocks will likely remain under pressure for the next several weeks as some traders incorrectly anticipate that high oil prices will lead the U.S. economy into recession next year, thus resulting in a significant fall in crude prices.
NASDAQ 1,928.76 +.46%
Leading Sectors
Biotech +1.08%
Internet +.73%
Software +.72%
Lagging Sectors
Energy -.95%
Airlines -.99%
Oil Service -2.62%
Other
Crude Oil 53.56 +.47%
Natural Gas 6.85 -4.30%
Gold 423.30 -.28%
Base Metals 125.26 -.11%
U.S. Dollar 87.54 +.03%
10-Yr. T-note Yield 4.13% +.05%
VIX 14.71 -2.26%
Put/Call .77 -23.0%
NYSE Arms 1.21 -49.79%
After-hours Movers
CTV -20.7% after reaffirming 3Q and lowering 4Q forecasts.
Recommendations
Goldman Sachs reiterated Outperform on BBY, ALK and SRE.
After-hours News
U.S. stocks finished quietly higher today on short-covering after Friday's Presidential debate. Motorola canceled a plan to develop televisions based on liquid crystal display technology for sale in China and North America, CNet said. General Motors plans to say Thursday that it will cut as many as 12,000 jobs from its European workforce to reduce costs by $500 million a year, the Financial Times reported. Computer Sciences won a $1.35 billion contract to manage phone and computer networks for Ascension Health, the biggest Catholic and non-profit heath system in the U.S. The dollar fell to a one-month low against the yen on speculation the Fed will skip an increase to it interest-rate target at one of two remaining meetings this year, Bloomberg reported. President Bush and Senator Kerry's second debate on Oct. 8 was watched by about 46.7 million tv viewers, Bloomberg said. The U.S. may need to coordinate flu vaccine supplies with other countries as the consolidation of the industry leaves nations reliant on a few companies, the FDA said.
BOTTOM LINE: The Portfolio finished slightly higher today as my rising alternative energy and networking longs more than offset my declining copper and security longs. I exited a copper long in the afternoon and added PMCS long, thus leaving the Portfolio 75% net long. I am using an $8.70 stop-loss on PMCS. Today's action was pretty non-eventful for the most part. Volume was about 25% lower than recent averages. It is good to see natural gas beginning to fall, however measures of investor complacency rose. Oil Service stocks will likely remain under pressure for the next several weeks as some traders incorrectly anticipate that high oil prices will lead the U.S. economy into recession next year, thus resulting in a significant fall in crude prices.
Monday Close
S&P 500 1,124.39 +.20%
NASDAQ 1,928.76 +.46%
Leading Sectors
Biotech +1.08%
Internet +.73%
Software +.72%
Lagging Sectors
Energy -.95%
Airlines -.99%
Oil Service -2.62%
Other
Crude Oil 53.56 +.47%
Natural Gas 6.85 -4.30%
Gold 423.30 -.28%
Base Metals 125.26 -.11%
U.S. Dollar 87.54 +.03%
10-Yr. T-note Yield 4.13% +.05%
VIX 14.71 -2.26%
Put/Call .77 -23.0%
NYSE Arms 1.21 -49.79%
After-hours Movers
CTV -20.7% after reaffirming 3Q and lowering 4Q forecasts.
Recommendations
Goldman Sachs reiterated Outperform on BBY, ALK and SRE.
After-hours News
U.S. stocks finished quietly higher today on short-covering after Friday's Presidential debate. Motorola canceled a plan to develop televisions based on liquid crystal display technology for sale in China and North America, CNet said. General Motors plans to say Thursday that it will cut as many as 12,000 jobs from its European workforce to reduce costs by $500 million a year, the Financial Times reported. Computer Sciences won a $1.35 billion contract to manage phone and computer networks for Ascension Health, the biggest Catholic and non-profit heath system in the U.S. The dollar fell to a one-month low against the yen on speculation the Fed will skip an increase to it interest-rate target at one of two remaining meetings this year, Bloomberg reported. President Bush and Senator Kerry's second debate on Oct. 8 was watched by about 46.7 million tv viewers, Bloomberg said. The U.S. may need to coordinate flu vaccine supplies with other countries as the consolidation of the industry leaves nations reliant on a few companies, the FDA said.
BOTTOM LINE: The Portfolio finished slightly higher today as my rising alternative energy and networking longs more than offset my declining copper and security longs. I exited a copper long in the afternoon and added PMCS long, thus leaving the Portfolio 75% net long. I am using an $8.70 stop-loss on PMCS. Today's action was pretty non-eventful for the most part. Volume was about 25% lower than recent averages. It is good to see natural gas beginning to fall, however measures of investor complacency rose. Oil Service stocks will likely remain under pressure for the next several weeks as some traders incorrectly anticipate that high oil prices will lead the U.S. economy into recession next year, thus resulting in a significant fall in crude prices.
NASDAQ 1,928.76 +.46%
Leading Sectors
Biotech +1.08%
Internet +.73%
Software +.72%
Lagging Sectors
Energy -.95%
Airlines -.99%
Oil Service -2.62%
Other
Crude Oil 53.56 +.47%
Natural Gas 6.85 -4.30%
Gold 423.30 -.28%
Base Metals 125.26 -.11%
U.S. Dollar 87.54 +.03%
10-Yr. T-note Yield 4.13% +.05%
VIX 14.71 -2.26%
Put/Call .77 -23.0%
NYSE Arms 1.21 -49.79%
After-hours Movers
CTV -20.7% after reaffirming 3Q and lowering 4Q forecasts.
Recommendations
Goldman Sachs reiterated Outperform on BBY, ALK and SRE.
After-hours News
U.S. stocks finished quietly higher today on short-covering after Friday's Presidential debate. Motorola canceled a plan to develop televisions based on liquid crystal display technology for sale in China and North America, CNet said. General Motors plans to say Thursday that it will cut as many as 12,000 jobs from its European workforce to reduce costs by $500 million a year, the Financial Times reported. Computer Sciences won a $1.35 billion contract to manage phone and computer networks for Ascension Health, the biggest Catholic and non-profit heath system in the U.S. The dollar fell to a one-month low against the yen on speculation the Fed will skip an increase to it interest-rate target at one of two remaining meetings this year, Bloomberg reported. President Bush and Senator Kerry's second debate on Oct. 8 was watched by about 46.7 million tv viewers, Bloomberg said. The U.S. may need to coordinate flu vaccine supplies with other countries as the consolidation of the industry leaves nations reliant on a few companies, the FDA said.
BOTTOM LINE: The Portfolio finished slightly higher today as my rising alternative energy and networking longs more than offset my declining copper and security longs. I exited a copper long in the afternoon and added PMCS long, thus leaving the Portfolio 75% net long. I am using an $8.70 stop-loss on PMCS. Today's action was pretty non-eventful for the most part. Volume was about 25% lower than recent averages. It is good to see natural gas beginning to fall, however measures of investor complacency rose. Oil Service stocks will likely remain under pressure for the next several weeks as some traders incorrectly anticipate that high oil prices will lead the U.S. economy into recession next year, thus resulting in a significant fall in crude prices.
Mid-day Update
S&P 500 1,223.30 +.10%
NASDAQ 1,924.08 +.21%
Leading Sectors
Biotech +.85%
I-Banks +.64%
Software +.56%
Lagging Sectors
Airlines -.73%
Energy -1.36%
Oil Service -2.59%
Other
Crude Oil 53.27 -.02%
Natural Gas 7.00 -2.21%
Gold 423.00 -.35%
Base Metals 125.07 -.26%
U.S. Dollar 87.58 +.08%
10-Yr. T-note Yield 4.13% +.05%
VIX 15.06 +.07%
Put/Call .79 -21.0%
NYSE Arms 1.23 -48.96%
Market Movers
SNDK -4.67% on profit-taking.
MVK -5.9% on LSS report and boosting 3Q earnings.
SNDA +9.8% after saying it acquired a leading Chinese original entertainment literature portal.
SFCC +6.6% after Jeffries upgrade to Buy, target $33.
LSS -18.8% after lowering 3Q estimates and multiple downgrades.
TNP -5.6% after Hibernia Southcoast downgrade to Hold.
LDG -6.3% after JP Morgan downgrade to Neutral.
Economic Data
None of note.
Recommendations
Citi SmithBarney cut NWAC to Sell, target $6. Citi reiterated Buy on CNET, target $13. Citi reiterated Sell on ELNK, target $9. Citi reiterated Buy on MNST, target $29. Citi reiterated Buy on NFLX, target $26. Citi reiterated Buy on NWS, target $40. Citi reiterated Buy on MATK, target $90. Citi reiterated Buy on GE, target $38. Citi reiterated Buy on WMT, target $65. Citi reiterated Buy on INTC, target $25.50. Goldman Sachs reiterated Outperform on RCL, MSFT, INTC, IGT, HOT, FS, KO, BAX, AVP, PFE, JNPR and GE. Goldman reiterated Underperform on INFA and TLAB. MU cut to Sell at Deutsche Bank, target $9. TXN cut to Sell at Deutsche Bank, target $18. MXO raised to Buy at Deutsche Bank, target $7. Legg Mason raised FLYR to Buy, target $25.
Mid-day News
U.S. stocks are quietly higher mid-day on short-covering after Friday's Presidential debate. The use of fingerprints may soon replace cash and passwords in retail transactions and other uses with the spread of more effective and affordable readers, the Wall Street Journal reported. Sheikh Mohammed bin Zayed Al-Nahyan, the deputy crown prince of the UAE, said crude oil prices have to fall to a "normal" level of about $30/bbl. in the near future, Deutsche Welle tv reported. The average vacancy rate of U.S. apartments fell to 6.6%, declining for the second straight quarter, the Wall Street Journal reported. The coffee brands Eight O'Clock Coffee and Chock full o'Nuts Coffee are unveiling advertising campaigns with hopes of taking some of Starbucks' supermarket sales, USA Today reported. Dunkin' Donuts plans to spend $25 million on ads in 60 markets promoting its coffee, the Boston Herald reported. Afghan President Karzai's main election rival, Yunus Qanooni, said he would accept the voting results after a UN panel looks into accusations of fraud, Agence France-Presse reported. President Bush gained 2 percentage points and now leads Senator Kerry by 5 percentage points after Friday's debate, according to Washington Post's daily tracking poll. SunTrust Banks said it will restate results for the first and second quarters of this year, increasing profit, because the company incorrectly calculated loan losses, Bloomberg reported. Phelps Dodge said its board approved an $850 million mine expansion project in Peru and agreed to sell equity stakes that may raise as much as $500 million, Bloomberg said.
BOTTOM LINE: The Portfolio is unchanged mid-day as my rising alternative energy and steel longs are being offset by my declining copper and medical technology longs. I have not traded today and the Portfolio is still 75% net long. The tone of the market is slightly positive, however volume is light. Stock prices will likely follow oil once again this afternoon as there is a lack of news today.
NASDAQ 1,924.08 +.21%
Leading Sectors
Biotech +.85%
I-Banks +.64%
Software +.56%
Lagging Sectors
Airlines -.73%
Energy -1.36%
Oil Service -2.59%
Other
Crude Oil 53.27 -.02%
Natural Gas 7.00 -2.21%
Gold 423.00 -.35%
Base Metals 125.07 -.26%
U.S. Dollar 87.58 +.08%
10-Yr. T-note Yield 4.13% +.05%
VIX 15.06 +.07%
Put/Call .79 -21.0%
NYSE Arms 1.23 -48.96%
Market Movers
SNDK -4.67% on profit-taking.
MVK -5.9% on LSS report and boosting 3Q earnings.
SNDA +9.8% after saying it acquired a leading Chinese original entertainment literature portal.
SFCC +6.6% after Jeffries upgrade to Buy, target $33.
LSS -18.8% after lowering 3Q estimates and multiple downgrades.
TNP -5.6% after Hibernia Southcoast downgrade to Hold.
LDG -6.3% after JP Morgan downgrade to Neutral.
Economic Data
None of note.
Recommendations
Citi SmithBarney cut NWAC to Sell, target $6. Citi reiterated Buy on CNET, target $13. Citi reiterated Sell on ELNK, target $9. Citi reiterated Buy on MNST, target $29. Citi reiterated Buy on NFLX, target $26. Citi reiterated Buy on NWS, target $40. Citi reiterated Buy on MATK, target $90. Citi reiterated Buy on GE, target $38. Citi reiterated Buy on WMT, target $65. Citi reiterated Buy on INTC, target $25.50. Goldman Sachs reiterated Outperform on RCL, MSFT, INTC, IGT, HOT, FS, KO, BAX, AVP, PFE, JNPR and GE. Goldman reiterated Underperform on INFA and TLAB. MU cut to Sell at Deutsche Bank, target $9. TXN cut to Sell at Deutsche Bank, target $18. MXO raised to Buy at Deutsche Bank, target $7. Legg Mason raised FLYR to Buy, target $25.
Mid-day News
U.S. stocks are quietly higher mid-day on short-covering after Friday's Presidential debate. The use of fingerprints may soon replace cash and passwords in retail transactions and other uses with the spread of more effective and affordable readers, the Wall Street Journal reported. Sheikh Mohammed bin Zayed Al-Nahyan, the deputy crown prince of the UAE, said crude oil prices have to fall to a "normal" level of about $30/bbl. in the near future, Deutsche Welle tv reported. The average vacancy rate of U.S. apartments fell to 6.6%, declining for the second straight quarter, the Wall Street Journal reported. The coffee brands Eight O'Clock Coffee and Chock full o'Nuts Coffee are unveiling advertising campaigns with hopes of taking some of Starbucks' supermarket sales, USA Today reported. Dunkin' Donuts plans to spend $25 million on ads in 60 markets promoting its coffee, the Boston Herald reported. Afghan President Karzai's main election rival, Yunus Qanooni, said he would accept the voting results after a UN panel looks into accusations of fraud, Agence France-Presse reported. President Bush gained 2 percentage points and now leads Senator Kerry by 5 percentage points after Friday's debate, according to Washington Post's daily tracking poll. SunTrust Banks said it will restate results for the first and second quarters of this year, increasing profit, because the company incorrectly calculated loan losses, Bloomberg reported. Phelps Dodge said its board approved an $850 million mine expansion project in Peru and agreed to sell equity stakes that may raise as much as $500 million, Bloomberg said.
BOTTOM LINE: The Portfolio is unchanged mid-day as my rising alternative energy and steel longs are being offset by my declining copper and medical technology longs. I have not traded today and the Portfolio is still 75% net long. The tone of the market is slightly positive, however volume is light. Stock prices will likely follow oil once again this afternoon as there is a lack of news today.
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