Tuesday, March 23, 2004

Mid-day Update

S&P 500 1,098.41 +.27%
NASDAQ 1,912.83 +.15%

Leading Sectors
Iron/Steel +1.29%
Airlines +1.0%
Papers +.50%

Lagging Sectors
Biotech -1.10%
Telecom -1.50%
Oil Service -1.64%

Crude Oil 37.35 +.81%
Natural Gas 5.49 -1.01%
Gold 420.20 +.67%
Base Metals 110.87 -1.28%
U.S. Dollar 87.71 -.11%
10-Yr. Long-Bond Yield 3.71% -.05%
VIX 21.02 -2.60%
Put/Call .68 -29.17%
NYSE Arms 1.29 -61.49%

Market Movers
PLMO +27.6% after significantly beating 3Q estimates and raising 4Q guidance.
ELN +7.7% after saying it will ask European regulators to approve its Antegren multiple sclerosis treatment this year.
SBNY +24.5% on strong demand for IPO.
SKIL +12.2% after better-than-expected 4Q estimates.
AKAM -9.2% after announcing COO will leave company.

Economic Data
None of note.

Goldman Sachs says that key takeaways from CTIA wireless show are 1)2G infrastructure market likely stronger than expected in 04 2)3G ramp continues to look steady in 04 3)3G ramp continues steady in 04. Overall, vendor sentiment remains in-line with recent positive demand comments, favorite is ERICY. GS reiterated Outperform on ACS, PETC and ATYT. GS says EU fine of $610M on MSFT is equivalent to 2 weeks of its cash flow, reiterated Outperform. GS positive on CSCO and NT ahead of their Voice on the Net conference next week. Citi Smith Barney raised RA to Buy 1M. Citi reiterated Buy on CCL, $53 target. Citi says NT oversold and is negotiating with FLEX to divest almost all it remaining optical, wireless and enterprise manufacturing operations. PFGC raised to Overweight at Morgan Stanley, target $41. PFE raised to Buy at Oppenheimer, target $39. SWY cut to Underweight at Lehman. TheStreet.com is positive on BRL.

Mid-day News
U.S. stocks are moving higher mid-day on a bounce from oversold levels and positive earnings news from Goldman Sachs. Jones Apparel Group began a hostile tender offer of about $297M for Maxwell Shoe, Bloomberg reported. The euro fell against the dollar after a European Central Bank report showed investors withdrew more than twice as much money from the euro region in January than in December. Advanced Micro(AMD) expects demand to rise in the second half of the year as companies buy new computers to replace those purchased in 1999. U.S. companies that have resisted making stock options an expense will have to do so starting next year under a rule the Financial Accounting Standards Board will issue this month.

BOTTOM LINE: The Portfolio is up slightly on the day as a few of my tech longs are up and my oil service shorts are down. I added a few new longs this morning on weakness in select securities. The Portfolio is now 50% net long. I will closely monitor the late-afternoon action for any signs that a significant bounce has begun as the major U.S. indices are oversold short-term.

No comments: