Another FDA Warning…

August 29, 2003
Brice Wightman

Stocks
rallied Friday ahead of the long weekend
— the second-lightest full-day trading volume of the year. The Nasdaq made a
17-month high, closing over 1,800 for a second day. Personal spending in July grew at the
fastest pace in four months. The Chicago PMI jumped to a 15-month high as the
index remains comfortably above the 50 mark. Personal income came in slightly lower than expected.
The final reading of the University of Michigan’s consumer sentiment reading
also came in below expectations. Bonds were slightly lower, closing early before
the holiday weekend.

For August, the Dow was up
1.9%, the Nasdaq gained 4.3%, and the S&P added 1.7%

In economic news, Personal
Income in July rose by 0.2% vs. expectations of 0.3% rise. Personal
Spending in July rose 0.8% as expected. The Chicago PMI for August
came in at a reading of 58.9 compared to July’s 55.9. Economists were expecting
a rise to 56.0. Lastly the revised Michigan Consumer Sentiment Index fell
to 89.3 from last month’s 90.2. Economist were expecting a rise to 90.4.

The 10-year U.S. Note
was -030 at 109 255.

The dollar was -0.82 at
98.01.

Gold was +5.90 at 375.70

Crude Oil was -.03 at
31.47.

Volume was
950,520,000 on
the NYSE, and 1,193,594,000 on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by 1.94, and up over down
volume by 2.50. Nasdaq advancing issues over declining issues at 1.35, and up
volume over down volume at 2.53.

Top Dow stocks were:

Stocks in the news:

The FDA issued a warning against Novartis, saying that the company
overstated the efficacy of its drug Lamisil. The nail fungus goes away in fewer
than 40% of patients. Novartis has pulled its commercial featuring “Digger.”
This is the second FDA warning this week; earlier Genetech was warned over its
growht hormone.

JP Morgan Chase
(
JPM |
Quote |
Chart |
News |
PowerRating) will head
up a consortium of 13 international banks helping to rebuild Iraq’s financial
system

United Airlines
(
UAL |
Quote |
Chart |
News |
PowerRating) said it probably won’t emerge from Chapter 11
until 2004.

Worldcom may face charges from other
states, including West Virginia and Alabama.

Drug maker Biovail
(
BVF |
Quote |
Chart |
News |
PowerRating)
rose 3% after the FDA approved a new version of its
anti-depression drug Wellbutrin XL. The new version only requires a once-a-day
dosage and has less risk of sexual side effects and weight gain. Wellbutrin XL
is expected to be released by mid-September and will be marketed by
GlaxoSmithKline
(
GSK |
Quote |
Chart |
News |
PowerRating).

Nextel Communications
(
NXTL |
Quote |
Chart |
News |
PowerRating)
gained 7% after a positive Business Week article. The
article quoted Graham Tanaka of Tanaka Capital Management’s optimistic view that
the stock could double or triple in the next 18 to 24 months and that he expects
a rapid rise in earnings growth.

Generic drug maker SICOR
(
SCRI |
Quote |
Chart |
News |
PowerRating) rose 4% after the FDA gave the company final
approval for its lymphocytic leukemia treatment.

Semiconductor equipment maker
Novellus Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating) fell after giving a
disappointing mid-quarter update. Due to a larger-than-expected $70 million
inventory write-off. For its third quarter, the company is expected revenues
between $215 to $220 million and breakeven earnings. Wall Street is expecting
the company to break even on sales of $220 million.

Networking equipment maker
Symbol Technologies
(
SBL |
Quote |
Chart |
News |
PowerRating) is postponing the filing of its 2002 10-K. The
company said that the filing will be delayed indefinitely due to accounting
issues with regard to the treatment of stock options and revenue recognition.

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

Brice Wightman

bricew@tradingmarkets.com

Another FDA Warning…

BUY THE FEAR, SELL THE GREED

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