$5 Gain After The Close!

Stocks
made a late-day rally on the heels of Greenspan’s remarks that lost jobs will be
replaced.
The Dow closed at a 31-month high and
the Nasdaq a 2 1/2 year high.

with fewer new highs and a weaker advance/decline line
today, but no real selling pressure.

Approximately 30% of the companies listed in the
S&P 500 index are expected to report earnings this week.  So far, earnings are
up 27%. Drug manufacturer  Schering-Plough
(
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reported a
disappointing fourth quarter as as it lost $181 million on revenues of $8.33
billion.  SGP also warned analysts to expect lower numbers for 2004 due to
increased competition from the generic drug industry.  Consumer goods maker
Kimberly-Clark

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reported a 24% increase in profit despite a major
price war with competitor Proctor & Gamble
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.  Net income rose to $459.5
million on sales of $3.7 billion. Top battery and razor maker Energizer
(
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reported higher earnings with its sales rising 42% to $811.7 million.  Earnings
for the quarter rose 33% to $115 million. Lastly, the Federal Reserve begins a
two-day meeting tomorrow and is expected to leave interest rates unchanged at
the 45-year low of 1%.  

 

Dow 
+134.22

10702.51
S&P 500

+13.82

1155.37
Nasdaq
+29.96

2153.83

The day’s leading sectors were
Networking
(
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+3.94%, Hardware
(
HWI.X |
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+2.98%,
Semis

(
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+2.42%, Disk Drives
(
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+2.32%.

Weak today were Amex Gold
Bugs

(
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-1.07%, and Airlines
(
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-0.74%.

Economic news releases included
higher December Existing Home Sales at $6.47 million.

10-year Notes were  -150
at 113 170

Dollar was +0.66 at
87.22

Crude Oil  was -0.46 at
34.47

Volume was
1,445,395,000
on the NYSE, and
1,931,760,000
on the Nasdaq.

Market breadth was positive.

NYSE  Issues  
Advancing  1868 Up Vol      
972
Declining 1432 Down Vol  
389
Ratio  1.30 2.49
Nasdaq     
Advancing  2063 Up Vol     
1386
Declining  1144 Down Vol  
509
Ratio  1.80 2.72

Stocks in the news:

After the bell, Novellus
(
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reported .07 in Q4 vs. a .06 estimate, beat on revenues, and named a new
president,
Sasson Somekh, formerly at Applied
Materials. Texas Instruments
(
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beat by .03, earning 0.22 in the
fourth quarter; revenue was up 9%. Agilent
(
A |
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rose $5 after the close;
the company is guiding higher, saying revenues could hit $1.63  – $1.68,
with earnings anticipated to be $0.20 to $0.24 per share from .05 – .15
previously expected. Altera
(
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was in-line after a charge but
missed on revenue. The company also approved a 10 million increase in its stock
repurchase plan.

Printer maker Lexmark International
(
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reported fourth-quarter earnings of $138.8 million on sales of  $1.37 billion. 
Both numbers indicated a strong demand for its printers but the manufacturer
cautioned investors on the outlook due to increased competition.

Idexx Laboratories
(
IDXX |
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reported
earnings of $12.4 million as its shares traded 5% higher.  Revenue was up 18% to
$124.8 million.

Tyson Foods
(
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PowerRating)
rose 11% after
reporting net income of $57 million on sales of $6.5 billion.  Higher margins
and improved pricing enabled the company to shrug off declines due to the
mad-cow disease effect.

eBay
(
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announced it has agreed
to purchase German online classified listings company Mobile.de for $152
million.  

bricew@tradingmarkets.com