Biotech Buyout


Stocks are lower today.

Ford
(
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Motor Company will take a $1.65
billion charge on labor costs for Visteon
(
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as a way to keep the
parts supplier competitive while lowering its own costs. Ford also gave a bright
outlook on strong sales of its new F-150 pickup. It is expected to earn at least
$1.05 a share for 2003. A report from the NYSE indicated that it may demand
ex-chairman Dick Grasso give up a big portion of the $140 million he
received. Drug-maker Pfizer
(
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has agreed to acquire biotech firm
Esperion
(
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Therapeutics for $1.3 billion. Esperion is involved
in cholesterol treatments.

Dow -4.36
10273.45
S&P 500 -1.75
1086.89
Nasdaq -9.21
1941.77

The day’s leading sectors are
Gold and Silver
(
XAU.X |
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+1.16%.Chemicals [CEX.X|
CEX.X]
+0.90%, Health Providers
(
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+0.88%, Oil Services
(
OSX.X |
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+0.45%,

Weak today is Airlines [XAL.X|XAL.X]
-1.23%, Health Products
(
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-0.82%.

No Economic news
releases today.

10-year Notes are -110
at 112 185

Dollar is -0.25 at 88.28

Gold is +1.30 at 411.20

Crude Oil is -0.69 at
33.02

Volume is 549,000,000 on
the NYSE, and 649,000,000 on the Nasdaq.

Market breadth is mixed.

NYSE Issues
Advancing 1587 Up Vol
270
Declining 1507 Down Vol 251
Ratio 1.01 1.08
Nasdaq
Advancing 339 Up Vol
254
Declining 494 Down Vol
366
Ratio 1.46 1.44

Top Dow stocks are:

McDonalds
(
MCD |
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, +2.09% at 24.81,
GM [GM|
GM],
+1.83% at 51.37, Alcoa |AA
|AA],
+1.34% at 84.51, and Honeywell [HON|
HON],
+1.26% at 32.34.

Stocks in the news:

Conagra
(
CAG |
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rose on earnings news of
$3.9 billion in sales and net income of $270.1 million. It attributed the strong
income to lower selling and general expenses.

First Sentinel
(
FSLA |
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agreed to be
acquired by Provident Financial Services
(
PFS |
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for $642 million,
creating New Jersey’s eighth-largest bank. FSLA is up 15% on the news.

JP Morgan initiated coverage on XM Satellite
Radio

(
XMSR |
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at “overweight”. JPM said XM has the ability to introduce
new and lower-priced radios before its competitor Sirius
(
SIRI |
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,
which should give XM a competitive advantage.

Antigenics
(
AGEN |
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rose 5% after
receiving FDA approval to proceed with Phase III trials of its treatment for
kidney cancer.

bricew@tradingmarkets.com