FDA Approval After The Close

Wachovia upped its rating on JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating) to outperform from market perform. Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating)
has gained 23% on the heels of better-than-expected 2Q earnings yesterday.
Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating) was boosted by JP Morgan, to overweight from neutral.
Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) slid on the news that co-founder Bill Joy is leaving the company after 21 years.

First Call reported that 3Q pre-announcements for
earnings came in less negative than the same period a year ago. With 747
companies providing estimates through Sept. 5, 30% stated they will surpass expectations, 18% are on
target and 52% warned earnings could miss forecasts. This compares to the same
period last year when the respective estimates were 25%, 22% and 53%. With the
pre-announcements picture improving from last year, First Call says profits for
3Q could rise as much as 19%, compared to analysts’ projections of a 14.7% rise.

A federal judge will allow lawsuits to proceed
against airplane manufacturers, airlines, and the Port Authority (owners of the
World Trade Center) by families of victims of the 9/11 tragedy. Boeing
(
BA |
Quote |
Chart |
News |
PowerRating)
closed down .63 at 36.33. AMR Corp.  
(
AMR |
Quote |
Chart |
News |
PowerRating) fell .50 at 12.73.
UAL and AMR said they would appeal the ruling.

Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) met with analysts, but
did not lower guidance as was rumored. Apparently the analysts were disappointed
with something in the presentation, but again, Yahoo did not lower guidance.
YHOO closed at 34.99, down .55.

In its first ever mid quarter update Texas
Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) said it expects 3Q earnings between .20 – .22/share,
the upper half of the range.

In a news conference after the close, a
representative for the NYSE compensation committee said NYSE Chairman Dick
Grasso would forego an additional $48 in retirement benefits.

Abbott Labs
(
ABT |
Quote |
Chart |
News |
PowerRating) received FDA
approval for a second use of its epilepsy drug
Depakote — to treat children. ABT closed at 42.32,
down .48.

In other news, former Baseball Commissioner and
Olympic Chairman Peter Ueberroth pulled out of the race for California governor.

Today’s Market
Indices:

The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating), 9507.20 down -79.909

The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating),
1023.17 down -6.47

The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating),
1873.43 down -15.19

NYSE Advancing Issues
1,249

NYSE Declining Issues
1992

NYSE Trading
Volume 1,375,440,000

NASDAQ Advancing Issues
1,305

NASDAQ Declining Issues
1,871

NASDAQ Trading
Volume 2,222,375,000

Today’s Leading
Sectors:

Golf and Silver Sector
Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), +1.25%

Computer Hardware Index

(
$HWI.X |
Quote |
Chart |
News |
PowerRating), +0.82%

Securities Broker Dealer
Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), +.65%

Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating),
+.21%.

Today’s Weak
Sectors:

S&P Retail Index
(
$RLX.X |
Quote |
Chart |
News |
PowerRating),
-3.04%

Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating),
-2.87%

Oil Service Sector Index

(
$OSX.X |
Quote |
Chart |
News |
PowerRating), -2.47%

Economic News:

Economic news is light on the
calendar today. At 10 a.m. EDT, wholesale inventories for July will be reported.
According to a survey by Bloomberg, inventories are expected to rise 0.1%.

Key Futures:

The 10-year U.S. Note:
+55 at 110 310

The dollar: -0.79 at
96.37

Gold: was -9 at
383.70

Crude Oil was +.34
at 29.18

McDonald’s Corp.
(
MCD |
Quote |
Chart |
News |
PowerRating) reported that same-store sales in August rose 3.8%.
Crediting its new salads, McGriddles breakfast sandwiches and extended hours,
the hamburger giant said same-store sales in the US jumped 8.8%.
Internationally, sales in Europe rose 1.0% but were down 4.0% in Asia, Africa
and the Middle East.

Comverse Technology [CMVT|CMVT]
posted a 2Q loss, excluding items, of $0.03 per share, beating the Street’s
estimate by $0.01 as revenues rose 4% to $188.5 million. The company expects 3Q
revenues of $191 million to generate a loss of $0.03 per share, excluding items.

Schering-Plough [SGP|SGP]
shares gained 3% after Raymond James upped the stock to “strong buy” from
“market perform,” and said it could increase in value by 60% if it were to trade
in line with breakup value. Analyst Michael Krensavage said the shares would
trade at about $25 based on a group multiple of 3.8 x estimated 2004 revenue. In
a note to clients, the analyst said events that could lift Schering-Plough
closer to breakup value include continued growth in prescriptions for
cholesterol drug Zetia. “Other potential positives include stabilization of
drugs whose market share has eroded amid the company’s problems,” said
Krensavage.

Watson Pharmaceutical’s
[WPI|WPI] shares rose more than 7% after the
company received FDA approval of its abbreviated new drug application for a
generic 5mg strength tablet version of Pfizer’s Glucotrol XL treatment for
hyperglycemia. The company also received tentative approval of a 10mg strength
tablet.

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

Vincent Mao

vincentm@tradingmarkets.com