Monday, February 09, 2004

Monday Watch

Earnings Announcements
Company/Estimates
CKSW/.02
FII/.47
FWHT/.14
IACI/.23
ZMH/.48

Economic Data
None of significance

Weekend News
Voice-over-internet-protocol is rapidly becoming a disruptive technology in Asia. James Cramer of the Street.com likes FFIV,YHOO,NT,JNPR and BRCM for a quick trade on the long-side. Barron's positive on RIG,TXN,LOW,TOY and DCN. Walmart talking up its RFID plans in Business Week, saying it will be buying printers and scanners as well as the tags. This should benefit ZBRA and UNA. Close analysis of the recent budget proposal for 04 shows a significant decrease in the rate of growth in Federal IT spending. The head of the IAEA, Mr El Baradei, says Dr Khan's admission shows many countries now have the ability to produce the necessary materials for nuclear weapons programs. An Arab newspaper is reporting that Al-Qaeda purchased nuclear arms from the Ukraine in 1998 and is storing them for later use. John Kerry won the Maine caucus a day after winning political contests in Michigan and Washington. His nomination is now just a formality. Shortages in components starting to appear in some areas of tech. 2 more human cases of bird flu in Vietnam. Officials in Delaware have ordered a flock of 12,000 chickens be destroyed on avian flu fears. This strain is not transferable to humans. Analysts underestimated earnings forecasts by 6% last year, the widest margin of error since tracking began in 1994. The US and Australia reached a free trade agreement that would reduce tariffs on almost all manufactured goods. Should benefit heavy machinery manufacturers most.
Asian stocks are up on avg. 1.5%.
S&P 500 indicated unch.
NASDAQ indicated +.1%

BOTTOM LINE: US equity markets should continue rallying tomorrow. I will re-evaluate my 100% net long stance based on tomorrow's action. I would like to see more volume on a follow-through rally. I will look to take profits on any unexpected weakness.

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