Tuesday, February 17, 2004

Tuesday Close

S&P 500 1,156.99+.98%
NASDAQ 2,080.35+1.30%


Leading Sectors
Wireless+3.98%
Airlines+3.26%
Iron/Steel+3.18%

Lagging Sectors
Broadcasting+.34%
Fashion+.07%
Transports-.25%

Other
Crude Oil 35.14-.14%
Natural Gas 5.31-.17%
Base Metals 112.43+2.63%
U.S. Dollar Index 84.87-.11%
10-Yr. Long-Bond Yield 4.04%-.05%

After-hours Movers
NTAP+9.5% on exceeding 3Q earnings/sales and raised 4Q guidance.
BRCM+7.1% after setting conference call tomorrow to discuss "stronger business outlook."
EP-11.1% after slashing its assessment of natural gas and oil reserves by 41%.
ANF+5.1% after meeting 4Q earnings/missing sales targets and reaffirming 1Q guidance on price increases for their clothes, baffling analysts.
BRKT+19.4% after significantly beating 4Q earnings estimates and raising 1Q guidance.
DITC+14.7% after beating 3Q estimates and raising 4Q guidance.
NTES+7.7% on excellent 4Q earnings above estimates.
PLAB+7.1% after significantly beating 1Q earnings estimates.
TXCC+5.6% on announcement that Samsung selected it as preferred VLSI component supplier for W-CDMA wireless platforms.

After-hours News
U.S. stocks advanced today on optimism an increase in merger activity is a sign that shares are cheap. Exceedingly strong corporate profits and low interest rates also helped. A U.S. appeals court rejected the challenge to the "Do not call" list. Rambus(RMBS) won a ruling from a U.S. FTC judge that may help it reap as much as $3B/year from semi makers. Japan's economy grew at a 7% annual pace last quarter, the fastest in 13 years. NYSE specialists settled with SEC for $240M.


BOTTOM LINE: Asian indices are indicated higher as prospects for the first synchronized global recovery in decades are brightening. The Portfolio had a very good day, notwithstanding its conservative position at the start of the day. It is now 100% net long. I added long positions in the basic material, overseas telecom and energy-related sectors. I expect more follow-through tomorrow, with tech leading the way after a multitude of good earnings reports after-hours. I may rotate into some tech if my short-term indicators give buy signals on the open.

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