Earnings of Note
Company/Estimate
ABC/.76
ADBL/.02
BJS/.55
BMC/.14
CLX/.54
EMR/.79
IGT/.33
MBI/1.32
PCLN/.27
THC/-.05
UNA/.03
Splits
VIDE 2-for-1
Economic Data
None of note.
Recommendations
Goldman Sachs reiterated Outperform on DDR, GILD and KRB.
Late-Night News
Asian indices are higher on optimism over falling energy prices and better economic growth in the region. EchoStar Communications' Dish Network is showing Michael Moore's "Fahrenheit 9/11" tonight, ahead of tomorrow's U.S. presidential election, Reuters reported. China will need to add 2,194 new planes in the next two decades to meet demand for air travel, the China Daily newspaper reported. As many as 121 million people may vote tomorrow, surpassing the record of 106 million set in the 2000 election, the NY Times reported. The U.S. government issued a travel alert for its citizens in the Philippines, saying the terrorist threat in the country "remains high," Bloomberg said. North Korea poses a "serious challenge" to UN efforts to control the spread of nuclear weapons, said Mohamed ElBaradei, director general of the IAEA, Bloomberg reported. PNC Financial Services proposed acquisition of Riggs National may fall through, the Washington Post reported. The European Union is "failing" to meet its economic goals and needs to become more urgent, the Wall Street Journal reported. Advisers and directors of the Federal Reserve's 12 regional banks and branches gave $1.4 million to federal campaigns and political action committees in this year's election. Those who gave to one party favored Republicans over Democrats by a 2-to-1 margin, Bloomberg reported.
Late-Night Trading
Asian Indices are +.25% to +1.75% on average.
S&P 500 indicated +.05%.
NASDAQ 100 indicated -.07%
BOTTOM LINE: I expect U.S. equities to open modestly higher in the morning and move higher into the afternoon on falling energy prices, diminishing domestic terrorism fears, short-covering, improving sentiment and optimism over future U.S. economic growth. The Portfolio is trading at its highs for the year and is 125% net long heading into tomorrow.
Tuesday, November 02, 2004
Monday, November 01, 2004
Monday Close
S&P 500 1,130.51 +.03%
NASDAQ 1,979.87 +.25%
Leading Sectors
Airlines +1.30%
Telecom +1.23%
Software +1.09%
Lagging Sectors
Energy -.70%
Drugs -.76%
Oil Service -1.36%
Other
Crude Oil 49.95 -3.50%
Natural Gas 8.72 -.06%
Gold 428.30 -.26%
Base Metals 114.83 -1.10%
U.S. Dollar 85.20 +.34%
10-Yr. T-note Yield 4.07% +1.15%
VIX 16.27 unch.
Put/Call .91 +35.82%
NYSE Arms 1.28 +37.63%
After-hours Movers
AVNX +9.7% after beating 1Q estimates and raising 2Q outlook.
COGT +9.0% after beating 3Q estimates.
WLDA+7.96% after announcing the DOT and CAAC have given it approval to operate a weekly charter air cargo flights between Dayton,OH and Shanghai Pudong Airport.
ODSY +15.1% after strong 3Q results and announcing $30M share buyback.
NSM -7.1% after cutting 2Q forecast.
MVSN -7.1% after beating 3Q estimates and lowering 4Q guidance.
FWHT -6.7% after beating 3Q estimates and widening 4Q guidance.
Recommendations
Goldman Sachs reiterated Outperform on LMT. Goldman reiterated Underperform on SCS.
After-hours News
U.S. stocks finished quietly higher today as falling oil prices more than offset election apprehension. After the close, Merck said an experimental vaccine that may be the first to fight a virus linked to cervical cancer reduced the risk of infections in a company-funded study. Computer Associates Intl. may look in areas beyond security software for future acquisitions, chief operating officer Jeff Clarke told CNBC. Ford Motor failed to reach full production of its three newest car models at a Chicago factory as planned last month, Automotive News said. The second-largest U.S. automaker may not achieve its output goal until late this month, the trade publication said. Freddie Mac, the second biggest provider of financing for U.S. residential mortgages, will resume quarterly reports of its earnings for the second quarter of 2005 after a two-year hiatus, Bloomberg reported. Visteon, an auto-parts supplier, said it will support its biggest customer by giving $1,000 to employees who buy vehicles from Ford Motor, Bloomberg said.
NASDAQ 1,979.87 +.25%
Leading Sectors
Airlines +1.30%
Telecom +1.23%
Software +1.09%
Lagging Sectors
Energy -.70%
Drugs -.76%
Oil Service -1.36%
Other
Crude Oil 49.95 -3.50%
Natural Gas 8.72 -.06%
Gold 428.30 -.26%
Base Metals 114.83 -1.10%
U.S. Dollar 85.20 +.34%
10-Yr. T-note Yield 4.07% +1.15%
VIX 16.27 unch.
Put/Call .91 +35.82%
NYSE Arms 1.28 +37.63%
After-hours Movers
AVNX +9.7% after beating 1Q estimates and raising 2Q outlook.
COGT +9.0% after beating 3Q estimates.
WLDA+7.96% after announcing the DOT and CAAC have given it approval to operate a weekly charter air cargo flights between Dayton,OH and Shanghai Pudong Airport.
ODSY +15.1% after strong 3Q results and announcing $30M share buyback.
NSM -7.1% after cutting 2Q forecast.
MVSN -7.1% after beating 3Q estimates and lowering 4Q guidance.
FWHT -6.7% after beating 3Q estimates and widening 4Q guidance.
Recommendations
Goldman Sachs reiterated Outperform on LMT. Goldman reiterated Underperform on SCS.
After-hours News
U.S. stocks finished quietly higher today as falling oil prices more than offset election apprehension. After the close, Merck said an experimental vaccine that may be the first to fight a virus linked to cervical cancer reduced the risk of infections in a company-funded study. Computer Associates Intl. may look in areas beyond security software for future acquisitions, chief operating officer Jeff Clarke told CNBC. Ford Motor failed to reach full production of its three newest car models at a Chicago factory as planned last month, Automotive News said. The second-largest U.S. automaker may not achieve its output goal until late this month, the trade publication said. Freddie Mac, the second biggest provider of financing for U.S. residential mortgages, will resume quarterly reports of its earnings for the second quarter of 2005 after a two-year hiatus, Bloomberg reported. Visteon, an auto-parts supplier, said it will support its biggest customer by giving $1,000 to employees who buy vehicles from Ford Motor, Bloomberg said.
BOTTOM LINE: The Portfolio finished higher today on strength in my internet and wireless longs. I did not trade in the afternoon, thus leaving the Portfolio 125% net long. The tone of the market improved modestly throughout the day. More stocks rose than fell and measures of investor anxiety climbed ahead of the most anticipated and bitter election in modern history. Energy prices dropped again today and have most likely seen their highs for at least the intermediate-term. I continue to expect a modest upwards move for U.S. stocks tomorrow before a more substantial move higher on Wednesday.
Mid-day Update
S&P 500 1,128.17 -.18%
NASDAQ 1,974.87 -.01%
Leading Sectors
Software +.94%
Telecom +.80%
Homebuilders +.69%
Lagging Sectors
Biotech -.48%
Drugs -1.03%
Oil Service -1.43%
Other
Crude Oil 49.80 -3.79%
Natural Gas 8.75 +.29%
Gold 428.10 -.30%
Base Metals 114.83 -1.10%
U.S. Dollar 85.22 +.37%
10-Yr. T-note Yield 4.08% +1.34%
VIX 16.36 +.55%
Put/Call .92 +37.31%
NYSE Arms 1.20 +29.03%
Market Movers
PSFT +10.5% after ORCL raised its offer for the company by 14%.
MRK -8.3% after the Wall Street Journal reported that the drugmaker tried for years to stop safety concerns from hurting sales of its Vioxx painkiller.
IVX -18.7% after missing 3Q estimates and lowering 04 guidance.
KSL +36.3% after Valero(VLI) agreed to purchase it for $2 billion.
TZOO +21.5% on short-squeeze.
CHLN +15.2% after it accepted Domaines Barons de Rothschild's increased bid for the 51% of the company it doesn't already own.
LFUS +16.6% after beating 3Q outlook.
KCI +12.0% after beating 3Q estimates and boosting 04/05 guidance.
WSTC +12.2% on SunTrust Robinson upgrade to Buy.
OSTK +5.0% on short-covering.
SHOP +7.9% on continuing strong demand after IPO.
DE +3.7% on Citi SmithBarney upgrade to Buy.
LZ -7.0% after missing 3Q estimates and lowering 4Q guidance.
NTE -9.8% after beating 3Q estimates substantially and lowering 4Q guidance.
PSRC -8.6% on Needham downgrade to Hold.
Economic Data
Personal Income for September rose .2% versus estimates of a .3% rise and a .3 increase in August.
Personal Spending for September rose .6% versus estimates of a .6% rise and a .1% decline in August.
PCE Deflator(YoY) for September rose 2.0% versus estimates of a 2.0% increase and a 2.1% gain in August.
PCE Core(YoY) for September rose 1.5% versus estimates of a 1.5% increase and a 1.4% rise in August.
Construction Spending for September was unchanged versus estimates of a .4% rise and a .9% increase in August.
ISM Manufacturing for October was 56.8 versus estimates of 58.5 and a reading of 58.5 in September.
ISM Prices Paid for October was 78.5 versus estimates of 79.0 and a reading of 76.0 in September.
Recommendations
-Goldman Sachs reiterated Outperform on VLTR, KSS, FRX, AIG, PXD, AGN and MDT. Goldman reiterated Underperform on AMCC, FHCC, AKS and DCLK. Goldman initiated CBG with Outperform rating.
-Citi SmithBarney upgraded DE to Buy, target $74. Citi upgraded EXC to Buy, target $45. Citi reiterated Buy on GIS, target $51.50. Citi said RSH, BBY, CC and PETC had good Sept. sales. Citi reiterated Buy on WMT, target $65. Citi reiterated Buy on CAM, target $60.
-Prudential cut PAYX to Underweight, target $25.
-JP Morgan raised CAM, MVL to Overweight. ICCI cut to Underweight at JP Morgan.
-CSFB raised ECA to Outperform, target $58.
Mid-day News
U.S. stocks are quietly lower mid-day as optimism over falling energy prices is offset by apprehension over the election. General Electric's NBC is trying to take more risks to retake its position as the leading network in term of viewers, the LA Times said. A federal judge issued an order barring political parties from challenging the eligibility of voters at polling locations in Ohio during the presidential election tomorrow, the AP reported. Oracle raised its takeover offer for PeopleSoft to $24 a share from $21 and said the offer is final, Bloomberg reported. Tyco Intl., the world's biggest maker of security systems, said it had a fourth-quarter profit as electronics and health sales rose, Bloomberg said. Crude oil prices plunged below $50/bbl. in NY for the first time since Oct. 5 on speculation that demand growth will fall next year as supplies increase, Bloomberg said. General Electric agreed to delay for two months its $900 million purchase of InVision Technologies while U.S. officials continue an investigation, Bloomberg reported.
NASDAQ 1,974.87 -.01%
Leading Sectors
Software +.94%
Telecom +.80%
Homebuilders +.69%
Lagging Sectors
Biotech -.48%
Drugs -1.03%
Oil Service -1.43%
Other
Crude Oil 49.80 -3.79%
Natural Gas 8.75 +.29%
Gold 428.10 -.30%
Base Metals 114.83 -1.10%
U.S. Dollar 85.22 +.37%
10-Yr. T-note Yield 4.08% +1.34%
VIX 16.36 +.55%
Put/Call .92 +37.31%
NYSE Arms 1.20 +29.03%
Market Movers
PSFT +10.5% after ORCL raised its offer for the company by 14%.
MRK -8.3% after the Wall Street Journal reported that the drugmaker tried for years to stop safety concerns from hurting sales of its Vioxx painkiller.
IVX -18.7% after missing 3Q estimates and lowering 04 guidance.
KSL +36.3% after Valero(VLI) agreed to purchase it for $2 billion.
TZOO +21.5% on short-squeeze.
CHLN +15.2% after it accepted Domaines Barons de Rothschild's increased bid for the 51% of the company it doesn't already own.
LFUS +16.6% after beating 3Q outlook.
KCI +12.0% after beating 3Q estimates and boosting 04/05 guidance.
WSTC +12.2% on SunTrust Robinson upgrade to Buy.
OSTK +5.0% on short-covering.
SHOP +7.9% on continuing strong demand after IPO.
DE +3.7% on Citi SmithBarney upgrade to Buy.
LZ -7.0% after missing 3Q estimates and lowering 4Q guidance.
NTE -9.8% after beating 3Q estimates substantially and lowering 4Q guidance.
PSRC -8.6% on Needham downgrade to Hold.
Economic Data
Personal Income for September rose .2% versus estimates of a .3% rise and a .3 increase in August.
Personal Spending for September rose .6% versus estimates of a .6% rise and a .1% decline in August.
PCE Deflator(YoY) for September rose 2.0% versus estimates of a 2.0% increase and a 2.1% gain in August.
PCE Core(YoY) for September rose 1.5% versus estimates of a 1.5% increase and a 1.4% rise in August.
Construction Spending for September was unchanged versus estimates of a .4% rise and a .9% increase in August.
ISM Manufacturing for October was 56.8 versus estimates of 58.5 and a reading of 58.5 in September.
ISM Prices Paid for October was 78.5 versus estimates of 79.0 and a reading of 76.0 in September.
Recommendations
-Goldman Sachs reiterated Outperform on VLTR, KSS, FRX, AIG, PXD, AGN and MDT. Goldman reiterated Underperform on AMCC, FHCC, AKS and DCLK. Goldman initiated CBG with Outperform rating.
-Citi SmithBarney upgraded DE to Buy, target $74. Citi upgraded EXC to Buy, target $45. Citi reiterated Buy on GIS, target $51.50. Citi said RSH, BBY, CC and PETC had good Sept. sales. Citi reiterated Buy on WMT, target $65. Citi reiterated Buy on CAM, target $60.
-Prudential cut PAYX to Underweight, target $25.
-JP Morgan raised CAM, MVL to Overweight. ICCI cut to Underweight at JP Morgan.
-CSFB raised ECA to Outperform, target $58.
Mid-day News
U.S. stocks are quietly lower mid-day as optimism over falling energy prices is offset by apprehension over the election. General Electric's NBC is trying to take more risks to retake its position as the leading network in term of viewers, the LA Times said. A federal judge issued an order barring political parties from challenging the eligibility of voters at polling locations in Ohio during the presidential election tomorrow, the AP reported. Oracle raised its takeover offer for PeopleSoft to $24 a share from $21 and said the offer is final, Bloomberg reported. Tyco Intl., the world's biggest maker of security systems, said it had a fourth-quarter profit as electronics and health sales rose, Bloomberg said. Crude oil prices plunged below $50/bbl. in NY for the first time since Oct. 5 on speculation that demand growth will fall next year as supplies increase, Bloomberg said. General Electric agreed to delay for two months its $900 million purchase of InVision Technologies while U.S. officials continue an investigation, Bloomberg reported.
Bottom Line: The Portfolio is slightly higher mid-day on strength in my internet and wireless longs. I have not traded today and the Portfolio remains 125% net long. The underlying tone of the market is pretty good today considering recent gains and election apprehension. The breakdown in energy prices makes me more confident in my prediction for accelerating U.S. economic growth over the next few months. Areas of technology that have been plagued by excess inventory should benefit as demand increases. Measures of investor anxiety are rising today which is also a positive. I expect U.S. stocks to rise modestly this afternoon on short-covering, optimism over falling energy prices and diminishing domestic terrorism fears.
Monday Watch
Earnings of Note
Company/Estimate
ACDO/.36
ASF/.10
CHK/.30
MXIM/.42
NBIX/-.39
PDLI/-.21
TYC/.43
SYY/.35
Splits
Rock 3-for-2
Economic Data
Personal Income for September is estimated to rise .3% versus a .4% increase in August.
Personal Spending for September is estimated to rise .6% versus no change in August.
PCE Deflator for September is estimated to rise 2.0% versus a 2.1% increase in August.
PCE Core for September is estimated to rise 1.5% versus a 1.4% gain in August.
Construction Spending for September is estimated up .4% versus a .8% gain in August.
ISM Manufacturing for October is estimated at 58.5 versus a reading of 58.5 in September.
ISM Prices Paid for October is estimated at 79.0 versus a reading of 76.0 in September.
Weekend Recommendations
Cashin' In had guests that were positive on FHRX and mixed on HD, SZE, MRK. Forbes on Fox had guests that were positive on KRB, SYY, PLMO, MOT, AAPL and TXN. Bulls and Bears had guests that were positive on EBAY, VLO, LLL, CMCSA, RUK, CAN and SMH. Barron's had positive comments on PGR, NVS, FTI, AIG, HSP, VAR, WSH, CLE, PMI, RDN, DE, MOV, TIF, COH, JWN, NMG/A and negative comments on LVLT. Goldman Sachs reiterated Outperform on HC, AMGN, TU, GILD, EBAY, BBY and KO. Goldman reiterated Underperform on FRNT.
Weekend News
Survivors in the U.S. airline industry will be carriers that forget full-service and improve operating efficiency to keep fares and travel delays to a minimum, the NY Times reported. Sempra Energy, owner of the largest U.S. natural gas utility, won approval to build a liquefied natural gas terminal in Mexico, the first such facility on North America's West Coast, the LA Times reported. Democratic NY Attorney General Spitzer may file civil fraud accusations against insurance broker Aon Corp. within two weeks as part of his investigation into the industry, the NY Times reported. Northwest Airlines, which has pared about a quarter of its workforce since 2001, plans to bring back about 600 furloughed flight attendants, the AP reported. Kaiser Permanente, a California-based HMO, may be a model for the U.S. health care system, with its emphasis on preventive care and controlling chronic illnesses, the NY Times reported. U.S. venture capital investment fell 15% in the third quarter, after five straight quarters of growth, evidence of a cooling-off that may benefit the industry, the NY Times reported. Iraqi Prime Minister Allawi said he will order an assault on the insurgent-controlled city of Fallujah if efforts to end the standoff aren't resolved soon, the AP reported. Afghanistan will create a ministry for narcotics to fight drug trafficking the country, Agence France-Presse said. FedEx Corp. will increase its trans-Atlantic shipping capacity by one-fifth in March, the Wall Street Journal said. GM, which has four manufacturing ventures in China, said it will help the country's largest carmaker develop low-polluting vehicles that run on gasoline-electric engines and fuel cells, Bloomberg said. U.S. employers probably added 175,000 workers to payrolls in October, the most in five months, while the unemployment rate held at a three-year low of 5.4%, the median forecast in a Bloomberg News survey of economists show. Crude oil is rising modestly in NY after reports said unions in Nigeria, the fifth-biggest supplier to the U.S., called a strike this month to disrupt the country's oil exports, Bloomberg said.
Late-Night Trading
Asian indices are mixed, -.75% to +.25% on average.
S&P 500 indicated -.17%.
NASDAQ 100 indicated -.27%
BOTTOM LINE: I expect U.S. stocks to open mixed in the morning and rise modestly into the afternoon on good economic reports, diminishing domestic terrorism fears, stable oil prices, good earnings reports, short-covering. The Portfolio is 125% net long heading into tomorrow.
Company/Estimate
ACDO/.36
ASF/.10
CHK/.30
MXIM/.42
NBIX/-.39
PDLI/-.21
TYC/.43
SYY/.35
Splits
Rock 3-for-2
Economic Data
Personal Income for September is estimated to rise .3% versus a .4% increase in August.
Personal Spending for September is estimated to rise .6% versus no change in August.
PCE Deflator for September is estimated to rise 2.0% versus a 2.1% increase in August.
PCE Core for September is estimated to rise 1.5% versus a 1.4% gain in August.
Construction Spending for September is estimated up .4% versus a .8% gain in August.
ISM Manufacturing for October is estimated at 58.5 versus a reading of 58.5 in September.
ISM Prices Paid for October is estimated at 79.0 versus a reading of 76.0 in September.
Weekend Recommendations
Cashin' In had guests that were positive on FHRX and mixed on HD, SZE, MRK. Forbes on Fox had guests that were positive on KRB, SYY, PLMO, MOT, AAPL and TXN. Bulls and Bears had guests that were positive on EBAY, VLO, LLL, CMCSA, RUK, CAN and SMH. Barron's had positive comments on PGR, NVS, FTI, AIG, HSP, VAR, WSH, CLE, PMI, RDN, DE, MOV, TIF, COH, JWN, NMG/A and negative comments on LVLT. Goldman Sachs reiterated Outperform on HC, AMGN, TU, GILD, EBAY, BBY and KO. Goldman reiterated Underperform on FRNT.
Weekend News
Survivors in the U.S. airline industry will be carriers that forget full-service and improve operating efficiency to keep fares and travel delays to a minimum, the NY Times reported. Sempra Energy, owner of the largest U.S. natural gas utility, won approval to build a liquefied natural gas terminal in Mexico, the first such facility on North America's West Coast, the LA Times reported. Democratic NY Attorney General Spitzer may file civil fraud accusations against insurance broker Aon Corp. within two weeks as part of his investigation into the industry, the NY Times reported. Northwest Airlines, which has pared about a quarter of its workforce since 2001, plans to bring back about 600 furloughed flight attendants, the AP reported. Kaiser Permanente, a California-based HMO, may be a model for the U.S. health care system, with its emphasis on preventive care and controlling chronic illnesses, the NY Times reported. U.S. venture capital investment fell 15% in the third quarter, after five straight quarters of growth, evidence of a cooling-off that may benefit the industry, the NY Times reported. Iraqi Prime Minister Allawi said he will order an assault on the insurgent-controlled city of Fallujah if efforts to end the standoff aren't resolved soon, the AP reported. Afghanistan will create a ministry for narcotics to fight drug trafficking the country, Agence France-Presse said. FedEx Corp. will increase its trans-Atlantic shipping capacity by one-fifth in March, the Wall Street Journal said. GM, which has four manufacturing ventures in China, said it will help the country's largest carmaker develop low-polluting vehicles that run on gasoline-electric engines and fuel cells, Bloomberg said. U.S. employers probably added 175,000 workers to payrolls in October, the most in five months, while the unemployment rate held at a three-year low of 5.4%, the median forecast in a Bloomberg News survey of economists show. Crude oil is rising modestly in NY after reports said unions in Nigeria, the fifth-biggest supplier to the U.S., called a strike this month to disrupt the country's oil exports, Bloomberg said.
Late-Night Trading
Asian indices are mixed, -.75% to +.25% on average.
S&P 500 indicated -.17%.
NASDAQ 100 indicated -.27%
BOTTOM LINE: I expect U.S. stocks to open mixed in the morning and rise modestly into the afternoon on good economic reports, diminishing domestic terrorism fears, stable oil prices, good earnings reports, short-covering. The Portfolio is 125% net long heading into tomorrow.
Sunday, October 31, 2004
Charts of the Week
2004 U.S. Presidential Winner
Click here for charts.
Bottom Line: The Iowa Electronic Markets show President Bush's chances of re-election at 54.8% versus the chances of a Kerry victory at 45.2%. Upon careful study of all the polls, underlying dynamics within the polls, the biased nature of some polls, Tradsports.com futures and the Iowa Electronic Markets, I have concluded that President Bush will receive 310 electoral votes to Senator Kerry's 228. Thus, President Bush should win re-election by a large enough margin to prevent any delay in the final outcome and substantially diminish the impact of the many lawsuits that are sure to follow. As a result, I expect the Dow Jones Industrial Average to rally 150-200 points on Wednesday.
Click here for charts.
Bottom Line: The Iowa Electronic Markets show President Bush's chances of re-election at 54.8% versus the chances of a Kerry victory at 45.2%. Upon careful study of all the polls, underlying dynamics within the polls, the biased nature of some polls, Tradsports.com futures and the Iowa Electronic Markets, I have concluded that President Bush will receive 310 electoral votes to Senator Kerry's 228. Thus, President Bush should win re-election by a large enough margin to prevent any delay in the final outcome and substantially diminish the impact of the many lawsuits that are sure to follow. As a result, I expect the Dow Jones Industrial Average to rally 150-200 points on Wednesday.
Weekly Outlook
There are a number of important economic reports and significant corporate earnings reports scheduled for release this week. Economic reports include Personal Income(Mon.), Personal Spending(Mon.), PCE Deflator(Mon.), Construction Spending(Mon.), ISM Manufacturing(Mon.), Factory Orders(Wed.), ISM Non-Manufacturing(Wed.), Vehicle Sales(Wed.), Preliminary 3Q Non-farm Productivity(Thur.), Unit Labor Costs(Thur.), Initial Jobless Claims(Thur.), Unemployment Rate(Fri.), Change in Non-farm Payrolls(Fri.) and Consumer Credit(Fri.). Personal Spending, ISM Manufacturing, ISM Non-Manufacturing and Change in Non-farm Payrolls all have market-moving potential.
Cigna(CI-Mon.), Maxim Integrated(MXIM-Mon.), Tyco Intl.(TYC-Mon.), MBIA Inc.(MBI-Tues.), Fox Entertainment(FOX-Wed.), IAC/InterActiveCorp(IACI-Wed.), Qualcomm(QCOM-Wed.), Time Warner(TWX-Wed.), CVS Corp.(CVS-Thur.), XM Satellite Radio(XMSR-Thur.) are some of the more important companies that release quarterly earnings this week. There are also some other events that have market-moving potential. The Morgan Stanley Software, Services, Internet & Networking Conference(Mon.), the U.S. Presidential Election(Tue.), Merrill Lynch Global Energy Conference(Wed.) and Chain Store Comp Sales Releases(Thur.) could also impact trading this week.
Cigna(CI-Mon.), Maxim Integrated(MXIM-Mon.), Tyco Intl.(TYC-Mon.), MBIA Inc.(MBI-Tues.), Fox Entertainment(FOX-Wed.), IAC/InterActiveCorp(IACI-Wed.), Qualcomm(QCOM-Wed.), Time Warner(TWX-Wed.), CVS Corp.(CVS-Thur.), XM Satellite Radio(XMSR-Thur.) are some of the more important companies that release quarterly earnings this week. There are also some other events that have market-moving potential. The Morgan Stanley Software, Services, Internet & Networking Conference(Mon.), the U.S. Presidential Election(Tue.), Merrill Lynch Global Energy Conference(Wed.) and Chain Store Comp Sales Releases(Thur.) could also impact trading this week.
Bottom Line: I expect U.S. stocks to finish the week sharply higher on strong economic reports, significantly diminishing domestic terrorism fears, no delay in the declaration of a winner in the election, an end to uncertainty over the direction of the country, subsiding negativity from the media and politicians, falling energy prices and good earnings reports. Equities will likely open mixed on Mon./Tues. mornings and move modestly higher by both day's end. I expect U.S. shares to gap higher on Wed. with the DJIA rising 100-250 points, depending on the various election outcomes I foresee. Stocks should continue moving modestly higher to end the week. My short-term trading indicators are giving Buy signals and the Portfolio is 125% net long heading into the week.
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