This Is What The Street Is Debating

June 20, 2003
Vincent Mao

Stocks
are higher this midday.Â The major indices are recovering after
yesterday’s sell off. Despite the lack of economic reports, stocks still had a
volatile morning, thanks to today’s quadruple witching. The Dow is currently
leading the pack after an upgrade on General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) and GE’s backing of
its second-quarter targets boosted the blue chip average. The Nasdaq is lagging
due to weakness in semiconductor and software issues. Goldman’s revised outlook
on economic growth is also helping stocks. Economists at Goldman Sachs raised
their 2004 GDP forecast from 2.5% to 3.3%. Bonds, which have been lower for the
past three out of four days, are once again lower. Next Tuesday marks the start
of the Fed meeting where the FOMC will decide the direction of short-term
interest rates. Though the market is expecting a cut, the debate remains on
whether it’ll be a quarter point or a half point.Â

No economic news for today.Â Â

The 10-year U.S. Note
isÂ -105 at 118 050.

The dollar is +0.80 at
94.44.

Gold is -3.70 at 358.10.

Crude OilÂ +0.82 at
29.33.

Volume is at 913,000,000
on the NYSE, and at 971,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 1.31, and
upÂ volume over down volume by a 1.68 ratio. Nasdaq advancing issues over
declining issues are at 1.15, and down volume over up volume is at a 1.03 ratio.

Top Dow stocks are:

Stocks in the news:

General Motors
(
GM |
Quote |
Chart |
News |
PowerRating)
is higher by 2.4% on heavy volume. The auto maker announced that it will offer
$10 billion in debt and convertible securities. General Motors plans to use the
proceeds to fund its pension and benefits programs. Prudential Securities also
upgraded the stock from “sell” to “buy”.Â Â

Nautica Enterprises
(
NAUT |
Quote |
Chart |
News |
PowerRating)
is higher by 17% on very heavy volume. The apparel firm said that the Barrington
Group has withdrawn one of its two nominees to Nautica’s board. Nautica feels
that Barrington’s intentions are not in the best interests of shareholders.Â

Bed Bath & Beyond
(
BBBY |
Quote |
Chart |
News |
PowerRating)
is lower by 4.5% on heavy volume and extending from yesterday’s sell off. The
housewares retailer announced that they have paid $200 million for the privately
held Christmas Tree Shops.Â

Cognos
(
COGN |
Quote |
Chart |
News |
PowerRating) is
lower by 7.6% on very heavy volume after the company lowered second-quarter
guidance. The software maker reported first-quarter results of 14 cents a share
compared to 11 cents a share of the same period a year ago. However the company
warned that second-quarter results will be between 15 and 18 cents a share or
just shy of estimates of 19 cents a share.Â Â

Express Scripts
(
ESRX |
Quote |
Chart |
News |
PowerRating)
is lower by 3.6% on heavy volume after the company announced that it has been
subpoenaed by the New York Attorney General. The subpoena is seeking information
about the company’s compliance with state and federal antitrust and consumer
protection matters.Â

Halliburton
(
HAL |
Quote |
Chart |
News |
PowerRating) is
off 5% on heavy volume. The company said that the settlement from asbestos
claims may exceed previous forecasts of $2.78 billion due to an increase in the
number of claims.Â

General Electric
(
GE |
Quote |
Chart |
News |
PowerRating)
is fractionally higher today after the company affirmed their second-quarter
targets of 37 to 39 cents a share. GE’s CFO, Keith Sherin, also came out with
full-year target between $1.55 and $1.70. This came after Merrill Lynch cut
their full-year target to $1.59 to $1.61 due to weakness in GE’s plastics
business.Â

Please feel free to email me
with any comments or questions.

Vincent Mao

This Is What The Street Is Debating

BUY THE FEAR, SELL THE GREED

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