Intel's Announcement After The Close

Stocks gained Thursday, the seventh consecutive up-day for the Nasdaq and SPX. The last time this happened on the Nasdaq was February 2000. Tech led the way as Goldman Sachs upgraded networking giant Cisco Systems (CSCO | Quote | Chart | News | PowerRating) from "in line" to "outperform". Semiconductors were higher as UBS upgraded a number of semiconductor equipment firms, including Applied Materials (AMAT | Quote | Chart | News | PowerRating), KLA-Tencor (KLAC | Quote | Chart | News | PowerRating), Novellus Systems (NVLS | Quote | Chart | News | PowerRating), and Lam Research (LRCX | Quote | Chart | News | PowerRating). In addition, better-than-expected first-quarter results from National Semiconductor (NSM | Quote | Chart | News | PowerRating) boosted chips.

Retail issues were also in the spotlight today as a number of retailer reported their monthly same-store sales results. Sales at Wal-Mart (WMT | Quote | Chart | News | PowerRating), Target (TGT | Quote | Chart | News | PowerRating), Pacific Sunwear (PSUN | Quote | Chart | News | PowerRating), Hot Topic (HOTT | Quote | Chart | News | PowerRating), and Costco (COST | Quote | Chart | News | PowerRating) all reported higher-than-expected sales. Meanwhile, Abercrombie & Fitch (ANF | Quote | Chart | News | PowerRating), American Eagle Outfitters (AEOS | Quote | Chart | News | PowerRating), Gap (GPS | Quote | Chart | News | PowerRating), and Wet Seal (WTSLA | Quote | Chart | News | PowerRating) came in with worse-than-expected results.

Several reports hit the market today with productivity, ISM Services, and factory orders all coming in better than expected. Initial weekly jobless claims, however, climbed back above the critical 400,000 level. Bonds were higher.

Federal prosecutors charged a former Goldman Sachs economist and VP with securities fraud. Accused of insider trading are John Youngdahl and Pete Davis. On the day the Treasury announced the long bond would be discontinued, bonds posted a large one-day movement.  Mr. Davis is accused of tipping off Mr. Youngdahl, among others, allegedly learning of the impending announcement an hour before the public. Goldman's treasury desk made about $1.6 million in trading profits on the news. In a separate but related suit, Goldman agreed to pay $9.3 million to settle charges that they failed to oversee Youngdahl.

The Dow Jones Industrial Average ($INDU.X | Quote | Chart | News | PowerRating) gained 19.44 at 9587.90. The S&P 500 ($SPX.X | Quote | Chart | News | PowerRating) added 1.70 at 1027.97. The Nasdaq ($COMPQ | Quote | Chart | News | PowerRating) rose 16.08 at 1868.98.

The day's leading sectors were Internets ($GIN.X | Quote | Chart | News | PowerRating), +3.19%, Gold & Silver ($XAU.X | Quote | Chart | News | PowerRating), +2.23%, Semiconductors ($SOX.X | Quote | Chart | News | PowerRating), +2.51%, Networking ($NWX.X | Quote | Chart | News | PowerRating), +1.85% and Biotech ($BTK.X | Quote | Chart | News | PowerRating), +1.89%.

Weak today were Oil Services ($OSX.X | Quote | Chart | News | PowerRating), -1.16%, Chemicals ($CEX.X | Quote | Chart | News | PowerRating), -0.85%, Banks ($BKX.X | Quote | Chart | News | PowerRating), -0.63%, Airlines ($XAL.X | Quote | Chart | News | PowerRating), -0.45%, and Insurance ($IUX.X | Quote | Chart | News | PowerRating), -0.51%.

In economic news, the Initial Jobless Claims for the week ended August 30 rose by 19,000 to 413,000. Economists had predicted a drop to 393,000. The less volatile four-week moving average rose by 15,000 to 413,000, the highest level since mid-July. Productivity in Q2 came in at +6.8% vs. estimates of +6.4%. The ISM Services Index for August came in flat at 65.1, while economists were expecting a drop to 62.0. Lastly, Factory Orders in July rose 1.6%, double what economists were expecting.

The 10-year U.S. Note was +245 at 111 110

The dollar was -0.58 at 98.13.

Gold was 1.40 at 373.40.

Crude Oil was -0.58 at 28.98

Volume was 1,456,264,000 on the NYSE, and 1,858,761,000 on the Nasdaq.

Market breadth was positive, with NYSE advancing issues over declining issues by 1.22, and up over down volume by 1.10. Nasdaq advancing issues over declining issues at 1.18, and up volume over down volume at 2.82.

Pharmacy and health services provider Accredo Health (ACDO | Quote | Chart | News | PowerRating) gained 11% after the company reported fourth-quarter results that topped expectations. The company earned 36 cents a share compared to 18 cents a share in the year-ago quarter. Analysts had predicted results of 32 cents a share. Revenues jumped 75% to $329.1 million and topped estimates of $318.5 million. Accredo raised guidance for its next fiscal year to $1.54 to $1.59 from its previous estimate of $1.53 to $1.58.

Supermarket chain Albertson's (ABS | Quote | Chart | News | PowerRating) rose 9% despite reporting a 30% drop in quarterly earnings. The company reported second-quarter results of 44 cents a share compared to 63 cents a share in the year-ago quarter. Albertson's attributed the drop in earnings to an increase in employee benefits and higher worker's compensation costs. However the company is backing its full-year forecast of $1.70 to $1.75 a share.

Hotel and casino operator MGM Mirage (MGG | Quote | Chart | News | PowerRating) rose after the company raised its third-quarter forecasts. The company now expects earnings of 35 cents a share compared to its prior forecast of 30 cents. In a statement, MGM Chairman Terry Lanni said, "Our forward room bookings and overall trends continue to show strength."

Drug maker Pfizer (PFE | Quote | Chart | News | PowerRating) slipped after the company lowered its fiscal 2003 forecasts. Due to a change in inventory valuation from its purchase of Pharmacia, the maker of Viagra now expects earnings of 70 cents a share. Previously the firm had expected to earn 86 cents a share.

If you have any comments or questions, please feel free to email me.

Brice Wightman

bricew@tradingmarkets.com