Why Intel Will Be Key Later Today

September 4, 2003
Vincent Mao

Stocks are
mixed this midday.Â After running for the
last six sessions, the major indices are currently mixed with both the Dow and
S&P showing a slight loss while the Nasdaq is showing a slight gain. Tech issues
are continuing their outperformance today as Goldman Sachs upgraded networking
giant Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) from “in line” to “outperform”.

A number of economic reports
hit the market today with productivity, ISM Services, and factory orders all
coming in better than expected. However, initial weekly jobless claims climbed
back above the critical 400,000 level. Bonds are higher today.

In economic news, the
Initial Jobless Claims for the week ended August 30 rose by 19,000 to
413,000. Economists had predicted a drop to 393,000. The less volatile four-week
moving average rose by 15,000 to 413,000, the highest level since mid-July.
Productivity in Q2 came in at +6.8% vs. estimates of +6.4%. The ISM Services
Index for August came in flat at 65.1, while economists were expecting a drop to
62.0. Lastly, Factory Orders in July rose 1.6%, double what economists were
expecting.Â

The 10-year U.S. Note
is +270 at 109 155.

The dollar is -0.43 at
98.38.

Gold is -1.80 at 373.20.

Crude Oil -0.32 at
29.15.

Volume is 799,000,000 on
the NYSE, and 1,094,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 1.14, and up over down
volume by 1.15. Nasdaq advancing issues over declining issues at 1.07, and up
volume over down volume at 2.47.

Top Dow stocks are:

Stocks in the news:

Pharmacy and health services
provider Accredo Health
(
ACDO |
Quote |
Chart |
News |
PowerRating) is higher by 15% after the company
reported fourth-quarter results that topped expectations. The company earned 36
cents a share compared to 18 cents a share in the year-ago quarter. Analysts had
predicted results of 32 cents a share. Revenues jumped 75% to $329.1 million and
topped estimates of $318.5 million. Accredo raised guidance for its next fiscal
year to $1.54 to $1.59 from its previous estimate of $1.53 to $1.58.

Supermarket chain
Albertson’s
(
ABP |
Quote |
Chart |
News |
PowerRating) is higher by 5% despite reporting a 30% drop in
quarterly earnings. The company reported second-quarter results of 44 cents a
share compared to 63 cents a share in the year-ago quarter. Albertson’s
attributed the drop in earnings to an increase in employee benefits and higher
worker’s compensation costs. However the company is backing its full-year
forecast of $1.70 to $1.75 a share.

Hotel and casino operator
MGM Mirage
(
MGG |
Quote |
Chart |
News |
PowerRating) is higher by 2.4% after the company raised its
third-quarter forecasts. The company now expects earnings of 35 cents a share
compared to its prior forecast of 30 cents. In a statement, MGM Chairman Terry
Lanni said, “Our forward room bookings and overall trends continue to show
strength.”

Drug maker Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating)
is lower by 2% after the company lowered its fiscal 2003 forecasts. Due to a
change in inventory valuation from its purchase of Pharmacia, the maker of
Viagra now expects earnings of 70 cents a share. Previously the firm had
expected to earn 86 cents a share.Â

The maker of the popular George
Foreman Grills, Salton
(
SFP |
Quote |
Chart |
News |
PowerRating), is lower by 12% after reporting its
fourth-quarter results. Late yesterday the company reported a fourth-quarter
loss of 79 cents a share compared to 21 cents a share in the year-ago quarter.
Revenues dropped 13% to $189.2 million. Looking ahead, the company expects to
return to profitability next quarter and full year 2004.

If you have any comments or
questions, please feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

Why Intel Will Be Key Later Today

BUY THE FEAR, SELL THE GREED

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