Another Multi-Billion Stock Buyback Announced After The Close

September 23, 2003
Brice Wightman

Stocks rose
Tuesday as the focus was more on corporate earnings
and less on the dollar. Three large brokerage houses, Morgan Stanley
(
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Goldman Sachs
(
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(
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better-than-expected quarterly results. Morgan Stanley reported third-quarter
results that more than doubled from year-ago levels as strong results from bond
trading helped to offset softness in its investment banking business. Goldman
Sachs reported its fifth straight quarter profit and topped estimates by 10

cents. Lehman Brothers
(
LEH |
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PowerRating) also benefited from strong bond trading results
as the company earned $1.81 a share compared to 70 cents in the year-ago
quarter. Shares of Morgan Stanley and Lehman Brothers are higher by 0.17% and
1.26% respectively, while Goldman is trading lower by more than 3%.

No economic reports today.

The 10-year U.S. Note
was +055 at 112 090.

The dollar was +0.27 at
94.12.

Gold was -2.00 at 385.30.

Crude Oil was -0.04 at
27.13.

Volume was
1,304,995,000 on
the NYSE, and 1,869,757,000 on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by 1.70 and up over down volume
by 2.01. Nasdaq advancing issues over declining issues at 1.68, and up volume
over down volume at 3.89.

Top Dow stocks were:

Stocks in the news:

After the close, Cisco
(
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authorized an addition al $7 billion for stock repurchase. This is in addition
to the $13 billion previously authorized.

Drug maker Adolor
(
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rose 29% after the company reported positive results from its
clinical trial of its Entereg drug which is used to treat intestinal blockage.
Adolor commented “Entereg had a statistically significant improvement in the
time to recovery of gastrointestinal function after surgery than…placebo.”

Hillenbrand Industries
(
HB |
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PowerRating)
gained 5% after the company raised its fourth-quarter and full-year
estimates. The health care and funeral services company now see fourth-quarter
results excluding items between $1.08 to $1.11 a share up from its previous
projection of $1.03 to $1.08 a share. Current consensus estimates are $1.06 a
share. Full-year results are now expected between $3.95 to $3.98 a share
compared to a previous forecast of $3.90 to $3.95 a share.

Jet Blue [JBLU|JBLU|]
rose 4% despite being sued by a group of passengers for giving
away passenger information. Late yesterday, a class-action lawsuit filed in Utah
alleges the company of fraud, misrepresentation, and invasion of privacy.

Goldman Sachs
(
GS |
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PowerRating)
slid 3.9% after reporting better-than-expected third quarter results.
Thanks to strength in its asset management, and equities business, the company
reported earnings of $1.32 a share compared to $1 a share in the year-ago
quarter. The results topped analysts’ estimates by 5 cents.

Verizon Communications
(
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PowerRating)
dropped almost 5% after the communications company lowered its full-year
2003 outlook. Due to weak demand, regulatory constraints, and rising labor
costs, the company now sees results between $2.56 to $2.60 a share, down from
its previous forecast of $2.70 to $2.80.

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

Vincent Mao

vincentm@tradingmarkets.com

Another Multi-Billion Stock Buyback Announced After The Close

BUY THE FEAR, SELL THE GREED

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