Big Verdict Against This Blue Chip

November 14, 2003
Brice Wightman

Stocks fell
Friday, in what some traders called a “buyer’s strike.”
Money rotated out of tech and into drugs. Oil made a three month high, and gold
closed just below $400 an ounce. For the week, the Dow lost -0.4%, and the
Nasdaq -1.8%. Gold was +4.5% for the week. The University of Michigan
released a higher-than-expected consumer sentiment index number of 93.5, up from
91.3 for the month of November. Other major economic news included retail sales
falling 0.3% last month, and core inflation at the wholesale level rising 0.5%,
much higher than the expected 0.2%. Charles Schwab
(
SCH |
Quote |
Chart |
News |
PowerRating) has been
subpoenaed by New York Attorney General Eliot Spitzer for its market-timing
activity in mutual funds. In its quarterly report filed today, American
Express
(
AXP |
Quote |
Chart |
News |
PowerRating) said it is responding to “requests for information” from
federal and state regulators as part of the continuing investigation of the
mutual fund industry. AXP closed down 1%.

A jury said Exxon
(
XOM |
Quote |
Chart |
News |
PowerRating)
must pay Alabama $11.9 billion in a dispute over unpaid gas royalties —
the verdict is the fourth
largest in U.S. history.

Trim Tabs said that stock
mutual fund inflows were $4.7 billion last week. Don’t forget, next week is
Comdex, the large technology show in Las Vegas.

Economic news releases for
today included Core PPI, up 0.5%; retail sales down 0.3%; and auto sales, up
0.2%. Capacity utilization held up at 75%, industrial production edged up 0.2%,
and preliminary Michigan sentiment numbers came in at 93.5.

10-year Notes were +195
at 113 080.

The dollar
was -.20 at 91.41.

Gold was +1.43 at
398.15.

Crude Oil was +0.27 at
31.78.

Volume was
1,337,080,000 on
the NYSE, and 1,816,776,000 on the Nasdaq.

Market breadth was negative,
with NYSE declining over advancing issues by 1.44 and up over down volume
by 1.21; Nasdaq declining over advancing issues at 2.03, and down volume over up
volume at 4.52.

Top Dow stocks were:

Stocks in the news:

BEAS Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating)
reported lower-than-expected software license sales and is trading 8%
lower. Despite the fact that net income rose to $29 million with total revenue
up 8% to $252 million, the company received downgrades from Robert W. Baird and
CE Unterberg Towbin.

Putnam Investments a unit of Marsh &
Mclennan
(
MMC |
Quote |
Chart |
News |
PowerRating), has agreed to settle with the SEC for alleged wrongdoings in
the mutual fund scandal. Putnam has agreed to “significant and far-reaching
corporate governance, compliance, and ethics reforms.” Putnam settled without
admitting or denying guilt, the SEC said.

Pegasus Communications
(
PGTV |
Quote |
Chart |
News |
PowerRating) rose
11% after the Federal District Court in Los Angeles ruled that the DirecTV
National Rural Telecommunications Cooperative settlement “has no effect” on any
Pegasus rights.

Univision Communications
(
UVN |
Quote |
Chart |
News |
PowerRating)
rose 4% after issuing a stronger-than-expected forecast for 2003. Net income
rose 52% for the third quarter on its acquisition of Hispanic Broadcasting. Net
income reached $42.2 million on revenues of $321.1 million. UVN expects revenue
to be between $1.304 billion to $1.313 billion, up from analysts’ consensus of
$1.26 billion.

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

Brice
Wightman

bricew@tradingmarkets.com

Big Verdict Against This Blue Chip

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources