Big Beer Bust In The Works?

Stocks sold
off as analysts seek to digest a full load of earnings reports this week.

The S&P 500
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broke its pivotal 200-day moving average. 3M
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reported earnings of $0.97 a share and upped 2004 earnings targets to
$3.72 a share for FY 2004. Sales rose 9.5% to $5.01 billion with all of its
seven business units reporting gains. Fed Chairman Alan Greenspan is expected to
give his twice-yearly speech before the Senate Banking Committee tomorrow.

Kraft

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reported earnings that met consensus at $698 million
with revenue that rose by 4.6% to $8.21 billion. The company warned of higher
dairy prices cutting into margins and cut FY04 earnings to $1.85 a share. It
also mentioned a negative effects from the low-carb diet for its US business
segment. Legg Mason
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fell after reporting earnings of $86.4
million with revenue up 29% at $538.9 million.

Adolph Coors
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is talking with Canadian brewer Molson about a possible merger.

Dow +20.93 10183.89
S&P 500 +0.24 1106.93
Nasdaq +9.54 1903.10

Strong today are: Airlines
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+1.10%, Hardware
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+1.13% Transport
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+0.69%, REITs
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+0.24%.

Weak today are: Internet
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-3.06%, Amex Gold Bugs
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-2.43%, Gold and
Silver

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-2.08%.

No economic news releases
today.

10-year Notes are +295
at 111 100

The dollar
is +0.04 at 87.34

Gold is -1.40 at 406.60

Crude Oil is +0.50 at
41.50

Volume is 555 million on
the NYSE, and 800 million on the Nasdaq.

Market breadth is negative

NYSE Issues
Advancing 1399 Up Vol 190
Declining 1687 Down Vol 352
Ratio 1.21 1.85
Nasdaq
Advancing 1015 Up Vol 305
Declining 1918 Down Vol 466
Ratio 1.89 1.53

Top Dow stocks are:

IBM
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, +1.21%,
Microsoft

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, +1.06% General Motors
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+0.99%
WalMart

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, +0.74%.

Stocks in the news:

Mattel
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reported net income of $23.5 million
with worldwide net sales rising 5% to $804 million. Its Barbie dolls sales fell
11% worldwide.

Occidental Petroleum
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reported earnings that
rose 55% to $581 million with energy production that rose 6%. The company noted
the gains from commodity prices and output were offset by higher operation costs
and depreciation and depletion expenses.

Boston Scientific
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will recall thousands of its Taxus stents after a death and serious
injuries were linked to the product.

Delta Airlines
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reported a loss
of $1.96 billion, excluding one-time charges, the loss amounted to $312 million.
Revenue was up 13% but higher fuel costs cut into margins.

Brice Wightman

bricew@tradingmarkets.com