Dow Within Shouting Distance Of New Highs

Stocks were higher–the fourth rally in five trading
sessions–
with the Dow and S&P close to 52-week highs. Two Dow
component upgrades and a chip sector upgrade provided the early impetus.
Construction spending for January rose a better than expected +0.7%.
The ISM was 55.3 in February, slightly lower than expected, vs. 56.4 in January.

Intel
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was upgraded at JP Morgan, as was Texas
Instruments

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. The firm upgraded the entire semiconductor sector.

Marsh & McLennan
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reported a quarterly loss of 1.28/share vs.
a 0.69 profit last year. The company will lay off 2500 employees and will cut
its dividend in half.

Continental Airlines
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reached a tentative agreement with
pilots, mechanics and flight attendants. The company expects to save $500
million per year under the new agreements.

Johnson & Johnson
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upgraded at Merrill Lynch, to ‘buy.’

Interest rates are higher; 10-year notes are at a 7-month low. Oil service
stocks were lower today, including BHI and TDW. Refiners are lower, too: SUN,
TSO, NBL, AHC. Energy stocks had a good run in February.

It seems fewer companies are giving guidance. 72% gave guidance in 2003; in
2004 that number dropped to 55% and looks to be even lower this year.

M&A deals are on the second fastest pace on record, with January and February
recording 1195 deals worth $202 billion.

Two NYSE seats sold today–for $1.5 million and $1.475 million–which was 25%
above the last sale 6 weeks ago.

Strong sectors were: Airlines
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+4.78%  Semis
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+2.25%  Brokers
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+1.55%    Disk Drives
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+1.43%   

Weak sectors were: Oil Services
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-2.52%   Gold  
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-2.22%    
Natural Gas
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-1.81%

Dow +64.66 10,830.59
Nasdaq +19.53 2071.25
S&P 500 +6.83 1210.44

The dollar was +0.27 at
82.78

Crude Oil was -0.07 at
51.68

Gold was -1.90to 432.30

ce=”Arial” size=”2″ face=”Arial”>Volume was 1.7 billion on the NYSE and
1.9 billion on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 2111 Up Vol 1019
Declining 1291 Down Vol 470
1.63 2.16
Nasdaq
Advancing 1836 Up Vol 1286
Declining 1293 Down Vol 481
1.41 2.67

Stocks in the News

XM Satellite Radio
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was the winner in a Smart Money
comparison of satellite radio music channels.

Piper Jaffray said that Elan
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is worth $10.

Smithfield Foods
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reported earnings that doubled.

Brice Wightman