We Could Find Leadership Here

Market breadth was mostly
positive, with NYSE advancing issues over declining issues by a ratio of
1.33, and up volume over down volume by a 1.48 ratio. Nasdaq declining issues
over advancing issues came in at 1.02, and up volume beat down volume by a 2.11
ratio.

The

VIX was -0.30 at 35.22. The

TRIN was +0.23 at 0.84.

Leading the Dow higher were:

Intel Corp.
(
INTC |
Quote |
Chart |
News |
PowerRating), +3.93% at 16.66, Exxon
Mobil
(
XOM |
Quote |
Chart |
News |
PowerRating), +3.64% at 33.85, Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating) +2.71% at
19.29, Microsoft Corp.
(
MSFT |
Quote |
Chart |
News |
PowerRating), +2.23% at 49.91, Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating),
+2.14% at 20.97, Merck Co.
(
MRK |
Quote |
Chart |
News |
PowerRating), +1.81% at 55.39.

Stocks in the news:

Tobacco company Altria
(
MO |
Quote |
Chart |
News |
PowerRating), -3.51% at 37.03,
beat its fourth-quarter earnings by $0.01 with profits of $0.93 per share. The
company’s income was 18% less than a year ago, and it traded lower earlier in
the day on sympathy with Kraft.

Food processor Kellogg
(
K |
Quote |
Chart |
News |
PowerRating), -1.26% at 32.71,
announced that it will raise the prices on its cereal by 2.0% – 2.5%.

Electronics company Sony Corp.
(
SNE |
Quote |
Chart |
News |
PowerRating), -0.82% at
40.81, said that its profit nearly doubled for its fiscal third-quarter, though
they were cautious of a slumping U.S. economy going forward.

Communications company Verizon
(
VZ |
Quote |
Chart |
News |
PowerRating), +4.43% at
37.65, reported earnings in line with expectations, but lowered its guidance for
full-year 2003.

Fuel stocks were up and running in response to President
Bush’s proposal to fund research for hydrogen-powered automobiles, but sold off
by day’s end. From that group, Plug Power (PLUG),
-1.85% at 5.29, Millennium Cell (MCEL),
-3.93% at 2.20, and Ballard Power (BLDP),
-0.09% at 10.48.

The nation’s second largest candy maker Hershey (HSY),
-2.92% at 64.70, reported fourth-quarter earnings in line with expectations as
it posted profits vs. a year ago loss due to charges from reducing its workforce
and inventory.

In the chip business, Novellus (NVLS),
+6.94% at 31.58, met its fourth-quarter earnings expectations with profits of
$0.11 per share and has guided higher for the first quarter. The company has
been upgraded by Merrill Lynch to “buy” from “neutral,” but has had its
estimates cut at UBS Warburg.

Also in the chip sector, Applied Materials (AMAT),
+2.71% at 13.60, was upgraded to a “buy” from “neutral” by UBS Warburg.
Elsewhere in semiconductor land, Texas Instruments (TXN),
+2.18% at 16.35, and KLA-Tencor (KLAC),
+3.40% at 35.85.

In the retail sector, Prudential downgraded Williams
Sonoma Inc. (WSM),
+3.19% at 23.91, and Bed Bath and Beyond (BBBY),
-0.64 at 33.99, to “hold” from “buy.”

Prudential has also upgraded oil stocks BP (BP),
+4.96% at 38.30, ChevronTexaco (CVX),
+3.73% at 65.30, and Marathon Oil (MRO),
+4.82% at 21.28.

Also in the oil sector, Cooper Cameron (CAM),
+2.10% at 46.95, missed its fourth-quarter earnings estimates by $0.01 with
profits of $0.38 per share. The company has also guided lower for the first
quarter.

Education company Career Education Corp. (CECO),
+15.78% at 46.44, was upgraded by CSFB to “outperform” from “neutral” after
beating its fourth-quarter earnings expectations by $0.06 with profits of $0.65
per share. Also, Corinthian Colleges (COCO),
+7.14% at 36.42, beat its second-quarter earnings expectations by $0.04 with
profits of $0.35 per share. The company has also guided higher for 2003.

Food processor Kraft Foods (KFT),
-13.59% at 31.20, missed its fourth-quarter earnings expectations by $0.01 with
profits of $0.54 per share. The company has also been downgraded by Merrill
Lynch to “neutral” from “buy.”