Making A Case for Recovery

Stocks are attempting to recover from yesterday’s
losses, with technology leading the major indexes in positive territory. With
little in the way of news, traders have focused on select business developments.

Major U.S. Steel makers are seeking the removal
of barriers by the U.S. government that prevent the companies from
consolidating. The industry leaders believe consolidation will allow them to
compete with cheaper foreign imports. The main players involved in the movement
are
USX-U.S. Steel
Group

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, Bethlehem Steel Corp.
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.

Enron
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received $1.5 billion in funding from Citigroup
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and JP Morgan
Chase

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in order to sustain itself for the time being. Enron has
filed the biggest bankruptcy in U.S. history.

Local telephone and data
services provider McLeodUSA Inc.
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reported that it was working
to eliminate its debt, but may seek to file for Chapter 11 bankruptcy. Investment
firm Forstmann Little is to buy McLeod’s telephone directory publishing unit for
$535 million and invest $100 million in the company.

Market breadth so far today is convincingly to
the upside with few major sectors in the red. The Nasdaq has made the strongest
gains with up volume dominating down volume by a ratio of over two to one. The
Dow and S&P 500 have managed slight gains, though NYSE up volume surpasses down
volume by a ratio of just under two to one.

Leading sectors today are Semiconductor Index

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, up
2.56% at 524.12, and the Networking Index
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, up
2.48% at 324.46.

The biggest losing sectors today are the S&P
Healthcare Index

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, down 0.91% at
838.15, and the Gold and Silver Index
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, down
0.89% at 52.90.

From our point gainers list:

Avant! Corporation
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is up 54.61% at
16.93 on
over 17 times average volume. This software company will be bought by Synopsis
in a stock deal worth $769 million.

Electro Scientific Industries Inc.
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is up 15.11% at 32.75 on over three times average volume. This electronic
instruments and control company was upgraded today by U.S. Warburg to “Strong
Buy” from “Hold”.

Dynegy Inc.
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is up
12.44% at 30.55 on over 100% average volume. The stock of this energy company
has been experiencing extreme volatility in relation to its dealings with
troubled rival Enron.

From our point losers list:

Synopsys Inc.
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is down 5.71% at
52.23 on 11 times average volume. This software company is set to buy Avant!
Corporation in a stock deal worth $769 million.

Symantec Corp.
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is down 4.14% at
62.009 on less than half average volume. There is no specific news related to
this software and programming company today.

Multimedia Games Inc.
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is down
7.29% at
30.50 on over two and half times average volume. There is no specific news
related to this related to this casino and gaming company.