Are You Ready For Some Football? You’ll Have To Change The Channel…

Stocks were mixed, with blue chips lower after 3M’s
earnings and the Nasdaq barely green on a merger.  Trading was
indecisive, with no real rally or selloff. It was the 4th day down for the Dow;
this following last week’s 4-day, 420 point drop.

After the close, Novellus
(
NVLS |
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PowerRating) reported in-line at 0.22; the
company beat on revenues but margins were lower than expected. Texas
Instruments [TXN|TXN ] beat by a penny.  Sonus Networks
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SONS |
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PowerRating)
lowered its forecast for Q1; the stocks traded lower after the close. Everest
Re
(
RE |
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PowerRating) missed by 0.12. Target
(
TGT |
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PowerRating) said that April comps
will be at the low end of the 2-4% range.

The Wall Street Journal reports that ESPN will broadcast Monday Night
Football beginning in 2006.. Price tag for one year: $600 million. The popular
game has been broadcast on ABC for 35 years.

3M
(
MMM |
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PowerRating) beat by 0.02 and affirmed guidance; revenues were on the
light side.

Adobe
(
ADBE |
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PowerRating) is buying Macromedia
(
MACR |
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PowerRating) for $3.4
billion—valuing MACR at $41.86/share.

Eli Lilly
(
LLY |
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PowerRating) beat estimates by 0.02 but sees a lower Q2.

Bank of America
(
BAC |
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PowerRating) reported Q1 earnings that beat estimates.

Suntrust
(
STI |
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PowerRating) beat by 0.04.

Corning
(
GLW |
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PowerRating) raised guidance.

Sirius Satellite Radio
(
SIRI |
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PowerRating) announced at 24-hour lifestyle
channel to be run by Martha Stewart
(
MSO |
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PowerRating). Martha’s 4-year deal comes
on the heels of a new daily cooking show and an “apprentice-like” show produced
by Mark Burnett.. Sirius has drawn top talent recently by signing Howard Stern
and the NFL. MSO hopes to reach more women in cars.

The 4-week moving average of the AAII Bullish Sentiment Index is 24%. The
4-week Bearish sentiment is at 45%; both are at extremes. The last time the
index showed 24% bullish was March 2003.

Tuesday morning , traders will be watching the PPI closely (8:30 AM
ET). The consensus is 0.7%; ex food and energy, 0.2%.

Earnings this week (estimates in parentheses):

Tuesday

YHOO (0.11), MER (1.18)  INTC (0.31)  PFE (0.53)  GM (-1.49) 
JNJ (0.92)  EMC (0.11)

Wednesday

EBAY (0.18),  Caterpillar (1.34),  Ford (0.39),  MOT 
(0.19),  JPM (0.69),  QCOM (0.27),  SBC  (0.33),  YUM
(0.52)

Thursday

GOOG (0.92), T (0.59)  MCD (0.43)

Friday

EK (0.33), HAL (0.44), IP (0.33), MYG (0.20)

Two-thirds of firms that have provided Q2 guidance have guided lower.
Thompson Financial says that Q1 earnings growth could be 11-12%.

Strong sectors were:  Gold
(
$XAU.X |
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PowerRating) +1.92%  
 Homebuilders
(
$HGX.X |
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PowerRating) -+1.65%   Natural Gas
(
$XNG.X |
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PowerRating)
+1.62%

Weak sectors were:  Healthcare Providers
(
$HMO.X |
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Chart |
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PowerRating) -1.75%  
Pharmaceuticals
(
$DRG.X |
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PowerRating) -0.73%   Software

(
$GSO.X$ |
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PowerRating)
-0.60% 

Stocks in the News

Human Genome Science
(
HGSI |
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PowerRating) reported positive Phase I clinical
trials in a tumor treatment drug.

General Electric
(
GE |
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PowerRating) will acquire Bombardier Capital $1.4 billion
in cash.

Hasbro
(
HAS |
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PowerRating) reported a Q1 loss of 0.02; estimates were for 
+0.04.

CV Theraputics
(
CVTX |
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PowerRating) said Renexa reduced angina in a late-stage
trial.

Symantec
(
SYMC |
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PowerRating) was upgraded to ‘buy’ at Deutsche Bank.

Gamestop
(
GME |
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PowerRating) will acquire Electronics Boutique
(
ELBO |
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PowerRating)
in a $1.44 billion cash and stock deal.