Here’s What Merrill Thinks Of Microsoft

July 2, 2003
Vincent Mao

Stocks
are moderately higher this midday. The major indices are continuing
to follow through on the upside after yesterday’s reversal. Positive economic
data as well as Merrill’s upgrade of Microsoft
(
MSFT |
Quote |
Chart |
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PowerRating) and Merrill’s
addition of Wal-Mart to their "Focus 1" list sparked some broad-based buying
today. The major averages are near their highs of the session with the Nasdaq
leading the pack. The Dow is hovering near the 9100 after backing away from it
earlier in the session. The next level of resistance for the Dow is the 20-day
moving average at 9116.85. Bonds are again lower after rising for the last two
sessions.

In economic news, Factory
Orders in May jumped 0.4% versus an expected flat reading. Tomorrow’s
initial claims report would be one to watch for as many expect claims to come in
below the critical 400K level.

The 10-year U.S. Note
is -075 at 117 020.

The dollar is -0.05 at
94.60.

Gold is + 0.50 at
352.20.

Crude Oil -0.18 at
30.22.

Volume is at 653,000,000
on the NYSE, and at 905,000,000 on the Nasdaq.

Market breadth is positive
on the NYSE and on the Nasdaq, with NYSE advancing issues over declining
issues by a ratio of 2.75, and up volume over down volume by a 2.82 ratio.
Nasdaq advancing issues over declining issues at 2.22, and up volume over down
volume is at a 4.98 ratio.

Top Dow stocks are:

Stocks in the news:

Benchmark Electronic
(
BHE |
Quote |
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PowerRating)
is trading higher by 9.8% after the company backed its second quarter estimates.
Benchmark said that they expect to meet or beat consensus estimates of $443
million in revenues and earnings of 44 cents per share. The company will
announced the results on July 24th.

Hollywood Entertainment
(
HLYW |
Quote |
Chart |
News |
PowerRating) is higher by 1.5% after the company upped its second quarter
estimates. The DVD and video game rental retailer raised its forecast to at
least 29 cents a share or a penny higher than previous estimates. Consensus
estimates had been around 29 cents a share.

Invitrogen
(
IVGN |
Quote |
Chart |
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PowerRating)
is higher by 9% after company announced that it will acquire privately held
Molecular Probes for $325 million in cash. Molecular Probes is a developer of
fluorescence technology based in Eugene Oregon.

Netflix
(
NFLX |
Quote |
Chart |
News |
PowerRating) is
higher by 8.9% on heavy volume after the online DVD rental service announced a
71% increase in membership. The company ended its second quarter with 1.15
million subscribers.

Baxter International
(
BAX |
Quote |
Chart |
News |
PowerRating)
is trading lower by 2.6% on heavy volume after the company announced that they
will take a second quarter charge of $200 million or 30 cents a share. The
charges are due to severance costs for 2500 employees as the company is closing
26 plasma collection plants.

Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) is
trading higher by 2.5% on after Merrill Lynch upgraded the software giant from
"neutral" to "buy". Merrill based the upgrade on the Microsoft’s potential
upside earnings surprise as well as a possible rise in its quarterly dividends.

Here’s What Merrill Thinks Of Microsoft

BUY THE FEAR, SELL THE GREED

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