Michael Dell Unloads Stock — Should You?

Stocks
were sharply higher Tuesday.
 After some brief early morning
weakness brought on by weakness in the dollar, stocks staged a strong turnaround
after some favorable economic reports. Consumer confidence rose to a five-month
high and thanks to record low interest rates, the housing sector is still red
hot. Biotechs, Internets, and Semiconductors led the way. After a
three-week run, bonds fell slightly. The dollar is weaker, trading at 1.1926 against the euro.

The Dow Jones Industrial
Average

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gained 179.97 at 8,781.35. The S&P 500
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rallied 18.27 at 951.49. The Nasdaq
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rose 46.60 at
1556.69.

The day’s leading sectors were
Biotechs
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, +5.37%, Internet
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,
+5.24%, Semiconductors
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, +6.09%, Disk Drives
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,
+5.43%, and Networking
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, +4.48%.

In economic news, Consumer
Confidence for May
, jumped to a six-month high of 83.8 from
April’s 81.0. However, this was below estimates of 84.0. New home sales in
April
increased by 1.7% to an annual rate of 1028K. This bested estimates of
985K. Existing home sales in April jumped 5.6% to an annual rate of 5.84
million, topping estimates of 5.70M.

The 10-year U.S. Note
was -85 at 118 175.

The dollar was -0.32 at
92.81.

Gold was -1.40 at 367.40

Crude Oil was -0.12 at
29.23.

Volume was at
1,529,455,000
on the NYSE, and at
1,905,372,000 on the Nasdaq.

Market breadth was very
positive
, with NYSE advancing issues over declining issues by a ratio of
2.40, and up volume over down volume by a 5.4 ratio. Nasdaq advancing issues
over declining issues at 2.38, and up volume over down volume is at a 9.03
ratio.

Top Dow stocks were:

Eastman Kodak
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, +1.48 at
31.76, Intel
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+0.98 at 19.79, General Motors
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+1.64 at 34.90, J.P. Morgan
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+1.15 at 32.05, and IBM
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+2.43 at 87.69.

Stocks in the news:

After the close, it was reported that
Dell
Computer
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CEO Michael Dell sold 10 million shares of
stock earlier in last week. DELL closed at 29.99, up 0.49.

AOL Time Warner
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traded to a new three-month high after The New York Times reported that
Stephen Case wants to spin off the Internet unit from the media giant. However a
spokesperson for AOL denied such plans. AOL closed at 14.98, up 0.27.

Dow component Boeing
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is fractionally lower. The aerospace and defense giant reached a $16 deal with
the Pentagon for the use of one hundred 767 planes. BA closed at 29.90, down
.09.

MGM Mirage
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was
higher on heavy volume. The resort and casino operator agreed to pay $5
million to the Nevada Gaming Control Board for failing to file a a proper
paperwork for cash transactions. MGG closed at 27.48, up 0.72.

Altria Group
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was
down on heavy volume. UBS Warburg downgraded the stock to “neutral”
from “buy” after its recent 20+% rally. Tobacco shares had been strong recently
after a Florida judge threw out a $145 billion suit against the companies. MO
closed down 0.22 at 42.09.

Honeywell
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was
higher after Morgan Stanley reiterated their “overweight” rating on the
company. Morgan based its view on Honeywell’s attractive valuation. HON closed
up 1.03 at 25.50.