S&P 500 1,144.06 +.85%
NASDAQ 2,020.98 +1.35%
Leading Sectors
Networking +4.38%
Disk Drives +4.02%
Nanotechnology +4.02%
Lagging Sectors
Foods +.01%
Broadcasting -.11%
Gaming -.13%
Other
Crude Oil 37.62 +.13%
Natural Gas 6.42 +.08%
Gold 395.40 -.03%
Base Metals 108.11 +1.12%
U.S. Dollar 89.43 -.01%
10-Yr. T-note Yield 4.69% -.46%
VIX 13.98 -2.31%
Put/Call .82 +2.50%
NYSE Arms .60 -9.09%
After-hours Movers
OVTI +11.15% after beating 4Q estimates, restating 1-3 quarters.
MLHR -4.73% after missing 4Q forecast and widening 1Q forecast.
T -4.14% after lowering 04 forecast.
MU -3.88% after beating 3Q earnings estimates but missing revenue estimates.
BBBY -3.14% after beating 1Q estimates and maintaining 2Q guidance.
Recommendations
Goldman Sachs said Sprint's announcement of its EV-DO rollout will benefit LU, NT and MOT. Goldman says SBC's announcement of an incremental $4-6 billion in capex over the next 5 years will benefit TLAB, ALA and CIEN. Goldman reiterated Outperform on NT, CSCO and JNPR.
After-hours News
U.S. stocks finished higher today, led by technology shares, as interest rates and oil prices fell. After the close, the BBC said it plans to start an Arabic-language television channel to broadcast 24-hour news across the Middle East, the Financial Times said. MasterCard will team up with NameProtect, a private U.S. online fraud detection company, to fight illegal misuse of the Internet, the London-based Times said. Comdex, once the biggest U.S. technology trade show, has been canceled this year because companies' budgets were "better suited" to hosting an event in 2005, Bloomberg reported. U.S. Treasuries rose in New York for a second day in three after the government sold $25 billion of two-year notes at the highest yield since June 2002, Bloomberg reported. FedEx raised its earnings forecast for the fiscal year and said fourth-quarter profit climbed 47% on an expanding global economy, Bloomberg said. Time Warner may form a partnership to offer wireless service to its cable television customers, Bloomberg reported. Six former executives of Enron and Merrill Lynch face additional charges in their fraud trial scheduled to begin August 16, Bloomberg said. Delta Air Lines' $11.8 billion in debt securities was downgraded by Moody's Investors Service because of concerns that losses will continue and cash flow will be reduced without labor and operating cost reductions, Bloomberg reported. An AOL software engineer was arrested and charged today with scheming to steal the Internet provider's subscriber list and send "massive amounts" of spam, Bloomberg reported.
BOTTOM LINE: The Portfolio finished substantially higher today. I covered several shorts and added a few new longs in various sectors in the afternoon, bringing the Portfolio's market exposure to 150% net long. One of my new longs is ACH and I am using a stop-loss of $47 on this position. The summer rally I anticipated appears to have begun in earnest today. I expect this rally will continue in fits and starts for the next several weeks.
Wednesday, June 23, 2004
Mid-day Update
S&P 500 1,135.47 +.09%
NASDAQ 2,004.78 +.53%
Leading Sectors
Nanotechnology +3.63%
Networking +3.50%
Iron/Steel +1.74%
Lagging Sectors
Insurance -.56%
Foods -.61%
Broadcasting -.63%
Other
Crude Oil 37.58 -1.75%
Natural Gas 6.36 -.81%
Gold 395.40 -.03%
Base Metals 108.11 +1.12%
U.S. Dollar 89.37 -.06%
10-Yr. T-note Yield 4.69% -.55%
VIX 14.52 +1.47%
Put/Call .94 +17.50%
NYSE Arms .74 +12.12%
Market Movers
CECO -17.7% after the company said it received a formal order of investigation from the SEC.
OSUR +25.8% after the FDA approved its test to detect HIV Type 2 in saliva.
PFGC -18.09% after cutting 2Q, 3Q and 4Q forecasts.
RJR +4.0% after winning FTC approval to acquire Brown & Williamson and saying it may sell some less popular cigarette brands to compete against Philip Morris.
MYL -9.2% after withdrawing its earnings forecast and suing the FDA after the agency delayed approval of the company's version of the Duragesic pain-relief skin patch.
IBPI -69.0% after saying it halted a trial of it iseganan drug for preventing pneumonia because participants who got the medicine had higher rates of pneumonia and death.
NVEC +14.22% on continued short squeeze following its announcement of a new patent.
MINI +15.07% after raising 2Q and 04 guidance.
TASR +8.02% on rumors of a deal with Sharper Image to sell a consumer version of its stun gun.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on KRI, PFGC, NKE and GCI. Goldman reiterated Attractive coverage view on Paper stocks, favorites are DTC, SPP and IP. Citi SmithBarney reiterated Buy ratings on FON, APCS and TEL. Citi reiterated Buy on GE, target $36. Citi reiterated Buy on MDC, target $100. Citi reiterated Buy on MWD, target $72. Citi reiterated Buy on GS, target $117. Citi reiterated Sell on IM, target $13. SFNT raised to Buy at Legg Mason, target $32. STA cut to Underweight at Morgan Stanley.
Mid-day News
U.S. stocks are mostly higher today as continued strength in computer networking shares boosts the entire tech sector. The U.S. military's Central Command has informally asked for as many as 25,000 more soldiers to send to Iraq, the Baltimore Sun reported. The Recording Industry Association of America filed lawsuits against 482 more computer users yesterday for alleged illegal Internet music copying, the AP reported. Saudi Arabia's leader, King Fahd, today offered an amnesty to suspected terrorists who turn themselves in within a month, Agence France-Presse reported. Tenet Healthcare, the U.S. hospital chain facing allegations it defrauded the government, doubled a junk-bond sale to $1 billion last week to give the company its biggest cash reserves since at least 1990, Bloomberg said. Eight U.K. servicemen who were seized by Iran with their naval vessels on a waterway between Iran and Iraq will be freed today, the U.K. and Iranian governments said. The SEC approved a pilot program that would ease short-selling restrictions on 1,000 stocks, Bloomberg reported. Shares of Salesforce.com, an Internet-based seller of business software, rose as much as 43% in their first trading after the company boosted its IPO to $110 million, Bloomberg said. Crude oil futures are falling after the Energy Department reported that U.S. inventories increased more than expected last week, Bloomberg reported. President Bush said the U.S. would add Vietnam to the list of countries under a pilot program to treat HIV and AIDS patients, and said the U.S. is committed to ending the modern-day "plague," Bloomberg reported. Bank of America will spit its stock 2-for-1 and boost the quarterly dividend 13% to .90/share, Bloomberg said.
BOTTOM LINE: The Portfolio is having a very good day today as a few of my semiconductor, security and base metal longs are rising substantially. I added a few new longs in various sectors this morning, leaving the Portfolio with 125% net long market exposure. One of my new longs is TLAB and I am using a stop-loss of $8 on this position. I expect stocks to rise modestly into the close on short-covering, falling energy prices and declining interest rates.
NASDAQ 2,004.78 +.53%
Leading Sectors
Nanotechnology +3.63%
Networking +3.50%
Iron/Steel +1.74%
Lagging Sectors
Insurance -.56%
Foods -.61%
Broadcasting -.63%
Other
Crude Oil 37.58 -1.75%
Natural Gas 6.36 -.81%
Gold 395.40 -.03%
Base Metals 108.11 +1.12%
U.S. Dollar 89.37 -.06%
10-Yr. T-note Yield 4.69% -.55%
VIX 14.52 +1.47%
Put/Call .94 +17.50%
NYSE Arms .74 +12.12%
Market Movers
CECO -17.7% after the company said it received a formal order of investigation from the SEC.
OSUR +25.8% after the FDA approved its test to detect HIV Type 2 in saliva.
PFGC -18.09% after cutting 2Q, 3Q and 4Q forecasts.
RJR +4.0% after winning FTC approval to acquire Brown & Williamson and saying it may sell some less popular cigarette brands to compete against Philip Morris.
MYL -9.2% after withdrawing its earnings forecast and suing the FDA after the agency delayed approval of the company's version of the Duragesic pain-relief skin patch.
IBPI -69.0% after saying it halted a trial of it iseganan drug for preventing pneumonia because participants who got the medicine had higher rates of pneumonia and death.
NVEC +14.22% on continued short squeeze following its announcement of a new patent.
MINI +15.07% after raising 2Q and 04 guidance.
TASR +8.02% on rumors of a deal with Sharper Image to sell a consumer version of its stun gun.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on KRI, PFGC, NKE and GCI. Goldman reiterated Attractive coverage view on Paper stocks, favorites are DTC, SPP and IP. Citi SmithBarney reiterated Buy ratings on FON, APCS and TEL. Citi reiterated Buy on GE, target $36. Citi reiterated Buy on MDC, target $100. Citi reiterated Buy on MWD, target $72. Citi reiterated Buy on GS, target $117. Citi reiterated Sell on IM, target $13. SFNT raised to Buy at Legg Mason, target $32. STA cut to Underweight at Morgan Stanley.
Mid-day News
U.S. stocks are mostly higher today as continued strength in computer networking shares boosts the entire tech sector. The U.S. military's Central Command has informally asked for as many as 25,000 more soldiers to send to Iraq, the Baltimore Sun reported. The Recording Industry Association of America filed lawsuits against 482 more computer users yesterday for alleged illegal Internet music copying, the AP reported. Saudi Arabia's leader, King Fahd, today offered an amnesty to suspected terrorists who turn themselves in within a month, Agence France-Presse reported. Tenet Healthcare, the U.S. hospital chain facing allegations it defrauded the government, doubled a junk-bond sale to $1 billion last week to give the company its biggest cash reserves since at least 1990, Bloomberg said. Eight U.K. servicemen who were seized by Iran with their naval vessels on a waterway between Iran and Iraq will be freed today, the U.K. and Iranian governments said. The SEC approved a pilot program that would ease short-selling restrictions on 1,000 stocks, Bloomberg reported. Shares of Salesforce.com, an Internet-based seller of business software, rose as much as 43% in their first trading after the company boosted its IPO to $110 million, Bloomberg said. Crude oil futures are falling after the Energy Department reported that U.S. inventories increased more than expected last week, Bloomberg reported. President Bush said the U.S. would add Vietnam to the list of countries under a pilot program to treat HIV and AIDS patients, and said the U.S. is committed to ending the modern-day "plague," Bloomberg reported. Bank of America will spit its stock 2-for-1 and boost the quarterly dividend 13% to .90/share, Bloomberg said.
BOTTOM LINE: The Portfolio is having a very good day today as a few of my semiconductor, security and base metal longs are rising substantially. I added a few new longs in various sectors this morning, leaving the Portfolio with 125% net long market exposure. One of my new longs is TLAB and I am using a stop-loss of $8 on this position. I expect stocks to rise modestly into the close on short-covering, falling energy prices and declining interest rates.
Wednesday Watch
Earnings of Note
Company/Estimate
ARRO/.35
BBBY/.25
FDX/1.33
MLHR/.17
MU/.09
OVTI/.31
WOR/.76
Splits
None of note.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on MERQ, AMGN and ADP. Goldman reiterated Attractive view on Energy sector seeing 30-50% upside, favorites are XOM, AHC, NFX, MUR, DVN and PXD.
Late-Night News
Asian indices are mixed as strength in Taiwan is being offset by weakness in China. Over 100 Goldman Sachs bankers may be able to sell stock worth $4.8 billion as the shares they were awarded at the securities firm's IPO are unlocked, the London-based Times said. Shanghai General Motors, which earned $965 million in net income last year, was the most profitable vehicle maker in China, the Shanghai Morning Post said. The U.S. won't repatriate Chinese citizens held at Guantanamo Bay because it's concerned they will be tortured or executed on their return, the Financial Times said. Salesforce.com, the maker of Internet-based sales software, raised $110 million in an IPO as it prepares to escalate its battle with business-software leaders including Siebel Systems, Bloomberg reported. Merrill Lynch plans to set up an investment banking venture in China that would manage share sales and trade bonds in the world's fastest growing major economy, Bloomberg said. U.S. Commerce Secretary Evans told China it will gave to cut barriers to American investment and trade, including cracking down on software piracy, to shore up support for free trade with the U.S., Bloomberg reported. Iran may release three U.K. navy vessels and eight crew members in the event an investigation shows they strayed inadvertently into Iranian waters, the Islamic Republic News Agency said. The Bank of Japan's Tankan survey, released next week, will show the number of executives at large manufacturers who are optimistic about business conditions has reached the highest level since 1991, Nikkei English News reported.
Late-Night Trading
Asian Indices -.50% to +1.0% on average.
S&P 500 indicated -.05%.
NASDAQ 100 indicated -.17%.
BOTTOM LINE: I expect U.S. stocks to open modestly higher in the morning on strength in technology shares and falling energy prices. I continue to believe the U.S. markets will embark upon an outsized upwards move within the next few weeks. The Portfolio is 100% net long heading into tomorrow.
Company/Estimate
ARRO/.35
BBBY/.25
FDX/1.33
MLHR/.17
MU/.09
OVTI/.31
WOR/.76
Splits
None of note.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on MERQ, AMGN and ADP. Goldman reiterated Attractive view on Energy sector seeing 30-50% upside, favorites are XOM, AHC, NFX, MUR, DVN and PXD.
Late-Night News
Asian indices are mixed as strength in Taiwan is being offset by weakness in China. Over 100 Goldman Sachs bankers may be able to sell stock worth $4.8 billion as the shares they were awarded at the securities firm's IPO are unlocked, the London-based Times said. Shanghai General Motors, which earned $965 million in net income last year, was the most profitable vehicle maker in China, the Shanghai Morning Post said. The U.S. won't repatriate Chinese citizens held at Guantanamo Bay because it's concerned they will be tortured or executed on their return, the Financial Times said. Salesforce.com, the maker of Internet-based sales software, raised $110 million in an IPO as it prepares to escalate its battle with business-software leaders including Siebel Systems, Bloomberg reported. Merrill Lynch plans to set up an investment banking venture in China that would manage share sales and trade bonds in the world's fastest growing major economy, Bloomberg said. U.S. Commerce Secretary Evans told China it will gave to cut barriers to American investment and trade, including cracking down on software piracy, to shore up support for free trade with the U.S., Bloomberg reported. Iran may release three U.K. navy vessels and eight crew members in the event an investigation shows they strayed inadvertently into Iranian waters, the Islamic Republic News Agency said. The Bank of Japan's Tankan survey, released next week, will show the number of executives at large manufacturers who are optimistic about business conditions has reached the highest level since 1991, Nikkei English News reported.
Late-Night Trading
Asian Indices -.50% to +1.0% on average.
S&P 500 indicated -.05%.
NASDAQ 100 indicated -.17%.
BOTTOM LINE: I expect U.S. stocks to open modestly higher in the morning on strength in technology shares and falling energy prices. I continue to believe the U.S. markets will embark upon an outsized upwards move within the next few weeks. The Portfolio is 100% net long heading into tomorrow.
Tuesday, June 22, 2004
Tuesday Close
S&P 500 1,134.41 +.36%
NASDAQ 1,994.15 +1.0%
Leading Sectors
Semis +3.47%
Disk Drives +2.98%
Networking +2.75%
Lagging Sectors
HMO's -.75%
Fashion -.79%
Broadcasting -1.23%
Other
Crude Oil 38.18 -.18%
Natural Gas 6.41 -.03%
Gold 396.20 +.18%
Base Metals 106.91 -2.66%
U.S. Dollar 89.43 +.20%
10-Yr. T-note Yield 4.72% +.72%
VIX 14.31 -6.23%
Put/Call .80 +5.26%
NYSE Arms .66 -49.62%
After-hours Movers
FSII +6.16% after beating 3Q estimates substantially and raising 4Q guidance.
Recommendations
Goldman Sachs reiterated Outperform on WMT, KR and MSFT.
After-hours News
U.S. stocks finished higher today led by technology shares on optimism over telecom spending. After the close, the European Union and the U.S. have failed to reach an agreement to spur competition in the airline market before a summit in Ireland this weekend, the Financial Times said. The EU is seeking to eventually remove the limit on foreign ownership of airlines, 25% in the U.S. and 49% in the EU, to access the U.S. domestic market, the FT said. Crude oil futures rose modestly today as refinery maintenance closings boosted concern gasoline supplies will be inadequate during the peak-demand summer months. About 10 million women in the U.S. are being screened unnecessarily for cervical cancer after having had a hysterectomy, an operation that usually removes the cervix and the risk of the disease, Bloomberg reported. SBC Communications will spend as much as $6 billion building a fiber-optic network that offers digital television service as it steps up competition with cable-TV providers, Bloomberg said.
BOTTOM LINE: The Portfolio finished unchanged on a late-day rally in my base metal and telecom equipment long positions. I added a few new semiconductor and financial longs in the afternoon, leaving the Portfolio with 100% net long market exposure. One of my new longs is PMCS and I am using a $12.50 stop-loss on this position. Volume increased and the advance/decline line improved greatly during the afternoon rally. Today's outperformance by tech is the beginning of a very strong move by the sector and is positive for the overall market, in my opinion.
NASDAQ 1,994.15 +1.0%
Leading Sectors
Semis +3.47%
Disk Drives +2.98%
Networking +2.75%
Lagging Sectors
HMO's -.75%
Fashion -.79%
Broadcasting -1.23%
Other
Crude Oil 38.18 -.18%
Natural Gas 6.41 -.03%
Gold 396.20 +.18%
Base Metals 106.91 -2.66%
U.S. Dollar 89.43 +.20%
10-Yr. T-note Yield 4.72% +.72%
VIX 14.31 -6.23%
Put/Call .80 +5.26%
NYSE Arms .66 -49.62%
After-hours Movers
FSII +6.16% after beating 3Q estimates substantially and raising 4Q guidance.
Recommendations
Goldman Sachs reiterated Outperform on WMT, KR and MSFT.
After-hours News
U.S. stocks finished higher today led by technology shares on optimism over telecom spending. After the close, the European Union and the U.S. have failed to reach an agreement to spur competition in the airline market before a summit in Ireland this weekend, the Financial Times said. The EU is seeking to eventually remove the limit on foreign ownership of airlines, 25% in the U.S. and 49% in the EU, to access the U.S. domestic market, the FT said. Crude oil futures rose modestly today as refinery maintenance closings boosted concern gasoline supplies will be inadequate during the peak-demand summer months. About 10 million women in the U.S. are being screened unnecessarily for cervical cancer after having had a hysterectomy, an operation that usually removes the cervix and the risk of the disease, Bloomberg reported. SBC Communications will spend as much as $6 billion building a fiber-optic network that offers digital television service as it steps up competition with cable-TV providers, Bloomberg said.
BOTTOM LINE: The Portfolio finished unchanged on a late-day rally in my base metal and telecom equipment long positions. I added a few new semiconductor and financial longs in the afternoon, leaving the Portfolio with 100% net long market exposure. One of my new longs is PMCS and I am using a $12.50 stop-loss on this position. Volume increased and the advance/decline line improved greatly during the afternoon rally. Today's outperformance by tech is the beginning of a very strong move by the sector and is positive for the overall market, in my opinion.
Mid-day Update
S&P 500 1,129.28 -.09%
NASDAQ 1,978.79 +.22%
Leading Sectors
Semis +2.46%
Networking +1.73%
Disk Drives +1.72%
Lagging Sectors
HMO's -.90%
Retail -.90%
Broadcasting -1.19%
Other
Crude Oil 37.80 +.10%
Natural Gas 6.37 +.49%
Gold 395.50 +.25%
Base Metals 106.91 -2.66%
U.S. Dollar 89.44 +.21%
10-Yr. T-note Yield 4.70% +.42%
VIX 15.11 -.85%
Put/Call .80 +5.26%
NYSE Arms .82 -37.40%
Market Movers
PLMO +38.2% after beating 4Q estimates and raising 1Q forecast substantially.
GLYN +49.9% after Dick's Sporting Goods(DKS) agreed to buy it for $305 million is cash.
TBUS +17.9% after announcing it received an order for security-related equipment that will be used during the Olympic Games.
DKS +14.86% after saying GLYN acquisition will boost 04 earnings.
LABS +5.11% after saying it will be added to the S&P SmallCap 600.
ALOG -8.27% after saying it received notice that L-3(LLL) had filed suit against it.
MRX -6.42% after lowering 05 e.p.s. and raising 05 sales forecasts.
FRX -5.6% after the U.K. asked for details of an unpublished study of Celexa.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on MRVL, DTV, KR, MCK, GLW, SYMC and SPG. Goldman reiterated Underperform on VRTX. Goldman expects AA to beat earnings estimates and AL to miss. Citi SmithBarney reiterated Buy on TYC, target $38. Citi reiterated Buy on ETN, target $78. Morgan Stanley cut TK to Underweight, target $38. Bank of America rated CRL Buy. QLGC raised to Buy at Merrill, target $34. NUVA rated Overweight at Lehman, target $16.
Mid-day News
U.S. stocks are quietly mixed today as strength in technology shares is being offset by weakness in retail and healthcare. The South Korean businessman being held hostage by an al-Qaeda linked militant group in Iraq was beheaded, CNBC reported. U.S. Commerce Secretary Donald Evans pressed Chinese Premier Wen Jiabao to float the yuan, curb government subsidies to industries and make clear the rules for imports and foreign investment, Bloomberg reported. The U.S. Senate passed a measure to stiffen fines against broadcasters that air indecent content, Bloomberg reported. A survey by E-Rewards found increasing problems with airlines' frequent-flier programs, 26% of respondents describing their recent experience in booking award travel as "much more difficult" or "virtually impossible," the NY Times reported. Donald Trump, who purchased 40 Wall Street for $1 million in 1995, may sell the 72-story, 1.3 million square foot building for $400 million or more, the NY Post reported. The United Auto Workers is cutting about 15% of its support staff, because of a decline in dues-paying members, the Detroit News reported. Tribune's LA Times cut about 160 positions at the newspaper, which faces lower-than-expected advertising sales, the Times reported. A recent report by UCLA forecasts the creation of 433,000 jobs in California through 05 on increased foreign trade and a rise in technology hiring, the LA Times reported. Iraq's transfer to a sovereign government next week will be an understated event because of security concerns, the Washington Times said. Iran is prepared to release eight British Royal Navy crew if the U.K. government apologizes for breaching Iranian sovereignty, Bloomberg reported. S&P 500 companies are very bullish, with positive-to-negative preannouncements at a record high according to Thomson First Call, IBD reported. Tradesports.com is showing a large jump in the chances of John Edwards being named the Democratic VP nominee.
BOTTOM LINE: The Portfolio is down slightly today as my longs are mostly lower and shorts are mixed. I have not traded today and the Portfolio is still 75% net long. Another quiet day as traders and investors remain apprehensive ahead of several market-moving events. Oil and interest rates are steady, however the ARMS Index is falling more than I would like to see. It is a positive that semis are outperforming. I expect stocks to remain mixed throughout the day.
NASDAQ 1,978.79 +.22%
Leading Sectors
Semis +2.46%
Networking +1.73%
Disk Drives +1.72%
Lagging Sectors
HMO's -.90%
Retail -.90%
Broadcasting -1.19%
Other
Crude Oil 37.80 +.10%
Natural Gas 6.37 +.49%
Gold 395.50 +.25%
Base Metals 106.91 -2.66%
U.S. Dollar 89.44 +.21%
10-Yr. T-note Yield 4.70% +.42%
VIX 15.11 -.85%
Put/Call .80 +5.26%
NYSE Arms .82 -37.40%
Market Movers
PLMO +38.2% after beating 4Q estimates and raising 1Q forecast substantially.
GLYN +49.9% after Dick's Sporting Goods(DKS) agreed to buy it for $305 million is cash.
TBUS +17.9% after announcing it received an order for security-related equipment that will be used during the Olympic Games.
DKS +14.86% after saying GLYN acquisition will boost 04 earnings.
LABS +5.11% after saying it will be added to the S&P SmallCap 600.
ALOG -8.27% after saying it received notice that L-3(LLL) had filed suit against it.
MRX -6.42% after lowering 05 e.p.s. and raising 05 sales forecasts.
FRX -5.6% after the U.K. asked for details of an unpublished study of Celexa.
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on MRVL, DTV, KR, MCK, GLW, SYMC and SPG. Goldman reiterated Underperform on VRTX. Goldman expects AA to beat earnings estimates and AL to miss. Citi SmithBarney reiterated Buy on TYC, target $38. Citi reiterated Buy on ETN, target $78. Morgan Stanley cut TK to Underweight, target $38. Bank of America rated CRL Buy. QLGC raised to Buy at Merrill, target $34. NUVA rated Overweight at Lehman, target $16.
Mid-day News
U.S. stocks are quietly mixed today as strength in technology shares is being offset by weakness in retail and healthcare. The South Korean businessman being held hostage by an al-Qaeda linked militant group in Iraq was beheaded, CNBC reported. U.S. Commerce Secretary Donald Evans pressed Chinese Premier Wen Jiabao to float the yuan, curb government subsidies to industries and make clear the rules for imports and foreign investment, Bloomberg reported. The U.S. Senate passed a measure to stiffen fines against broadcasters that air indecent content, Bloomberg reported. A survey by E-Rewards found increasing problems with airlines' frequent-flier programs, 26% of respondents describing their recent experience in booking award travel as "much more difficult" or "virtually impossible," the NY Times reported. Donald Trump, who purchased 40 Wall Street for $1 million in 1995, may sell the 72-story, 1.3 million square foot building for $400 million or more, the NY Post reported. The United Auto Workers is cutting about 15% of its support staff, because of a decline in dues-paying members, the Detroit News reported. Tribune's LA Times cut about 160 positions at the newspaper, which faces lower-than-expected advertising sales, the Times reported. A recent report by UCLA forecasts the creation of 433,000 jobs in California through 05 on increased foreign trade and a rise in technology hiring, the LA Times reported. Iraq's transfer to a sovereign government next week will be an understated event because of security concerns, the Washington Times said. Iran is prepared to release eight British Royal Navy crew if the U.K. government apologizes for breaching Iranian sovereignty, Bloomberg reported. S&P 500 companies are very bullish, with positive-to-negative preannouncements at a record high according to Thomson First Call, IBD reported. Tradesports.com is showing a large jump in the chances of John Edwards being named the Democratic VP nominee.
BOTTOM LINE: The Portfolio is down slightly today as my longs are mostly lower and shorts are mixed. I have not traded today and the Portfolio is still 75% net long. Another quiet day as traders and investors remain apprehensive ahead of several market-moving events. Oil and interest rates are steady, however the ARMS Index is falling more than I would like to see. It is a positive that semis are outperforming. I expect stocks to remain mixed throughout the day.
Tuesday Watch
Earnings of Note
Company/Estimate
COMS/-.10
CBK/.27
MWD/1.06
DRI/.44
GS/1.95
GTK/.73
Splits
NOC 2-for-1
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on AGN, IR, ACS and BC.
Late-Night News
Asian indices are mostly lower as strength in China is being offset by weakness in Japan and Korea. The U.S. Financial Accounting Standards Board will hold a public hearing on Thursday into plans to require stock options to be treated as an expense, the Financial Times said. EBay may be close to completing its purchase of baazee.com, an Indian auction company, the Economic Times reported. Tiffany & Co. sued EBay over the sale of counterfeit Tiffany jewelry through the Internet auction site, the Wall Street Journal reported. The SEC will approve rules requiring mutual funds to have independent chairmen, the NY Times reported. China's measures to slow the economy are showing "clear" effects and the government is confident of meeting its projections for growth, Premier Wen Jiabao said. Goldman Sachs and Morgan Stanley have agreed to settle SEC allegations that they improperly awarded shares in companies carrying out IPOs between 1999 and 2000, the Wall Street Journal reported.
Late-Night Trading
Asian Indices -1.0% to +.50% on average.
S&P 500 indicated -.05%.
NASDAQ 100 indicated -.10%.
BOTTOM LINE: I expect U.S. stocks to open modestly higher in the morning on strong corporate earnings reports. Here are some interesting reports by Media Tenor. The Portfolio is 75% net long heading into tomorrow.
Company/Estimate
COMS/-.10
CBK/.27
MWD/1.06
DRI/.44
GS/1.95
GTK/.73
Splits
NOC 2-for-1
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on AGN, IR, ACS and BC.
Late-Night News
Asian indices are mostly lower as strength in China is being offset by weakness in Japan and Korea. The U.S. Financial Accounting Standards Board will hold a public hearing on Thursday into plans to require stock options to be treated as an expense, the Financial Times said. EBay may be close to completing its purchase of baazee.com, an Indian auction company, the Economic Times reported. Tiffany & Co. sued EBay over the sale of counterfeit Tiffany jewelry through the Internet auction site, the Wall Street Journal reported. The SEC will approve rules requiring mutual funds to have independent chairmen, the NY Times reported. China's measures to slow the economy are showing "clear" effects and the government is confident of meeting its projections for growth, Premier Wen Jiabao said. Goldman Sachs and Morgan Stanley have agreed to settle SEC allegations that they improperly awarded shares in companies carrying out IPOs between 1999 and 2000, the Wall Street Journal reported.
Late-Night Trading
Asian Indices -1.0% to +.50% on average.
S&P 500 indicated -.05%.
NASDAQ 100 indicated -.10%.
BOTTOM LINE: I expect U.S. stocks to open modestly higher in the morning on strong corporate earnings reports. Here are some interesting reports by Media Tenor. The Portfolio is 75% net long heading into tomorrow.
Subscribe to:
Posts (Atom)