Tuesday, July 27, 2004

Tuesday Watch

Earnings of Note
Company/Estimate
ADP/.35
ATH/1.64
AV/.11
ABX/.06
BMCS/.13
CELL/.21
CB/1.58
DD/.81
JNY/.59
LLL/.79
LMT/.61
MFE/.06
MNST/.13
PSFT/.14
PD/2.48
SFA/.35
SINA/.31
TROW/.62
RIG/.10
UTSI/.33
VRTS/.19
VZ/.60

Splits
None of note.

Economic Data
Consumer Confidence for July estimated at 102.0 versus 101.9 in June.
New Home Sales for June estimated at 1272K versus 1369K in May.

Recommendations
Goldman Sachs reiterated Underperform on EK, SMP and VRTX. Goldman reiterated Outperform on AXP, BSX, IP, SLB, SII, BHI, EPD, ENH, AMGN, IDPH, DNA, GILD, AMLN, TRMS and BIIB.

Late-Night News
Asian indices are mixed as strength in Taiwan is being offset by weakness in Japan. Intel will cut prices of its processors used in desktop computers by as much as 35% next month to help reduce inventory and stimulate demand, the Commercial Times reported. China's first-half vehicle exports increased 84% to $290 million, the China news agency said. Cardinal Health said Richard Miller resigned as CFO after U.S. regulators stepped up a probe of the company's accounting, Bloomberg reported. Sleep Apnea, a breathing disorder that interrupts air flow during slumber, raises the risk of dying from a stroke, the European Respiratory Journal said. Almost 80% of Afghanistan's estimated 10 million eligible voters have registered to take part in presidential elections in October and a parliamentary poll next April, the UN said. Comcast will announce tomorrow that it is buying back more than $500 million of its own stock, the Wall Street Journal Reported.

Late-Night Trading
Asian Indices are -.50% to +.50% on average.
S&P 500 indicated +.09%.
NASDAQ 100 indicated +.29%

BOTTOM LINE: I expect U.S. stocks to open mixed in the morning on better economic reports, continuing earnings worries and negative political rhetoric. The CRB Index is trading very close to its 200-day moving-average and I expect it to break this level in the near future. This continues to be an unreported positive development as inflation worries stem mainly from the rise in commodities' prices. The Portfolio is 50% net short heading into tomorrow.

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