GM’s Employee Discount Campaign Was A Hit. Look Who’s Doing It Now

Stocks were slightly higher Friday in light in
pre-holiday trading.

The ISM Manufacturing Index was 53.8, better than expected. Construction
Spending for May fell -0.9%, weaker than expected. The University of Michigan
Consumer Sentiment Index was 96 in June vs. 86.9 in May.

Pixar
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company cited slower video sales for “The Incredibles.”

3M
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million charge related to the repatriation of foreign earnings.

Unocal
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had it at 1.37.

Red Hat
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met income. The company guided slightly lower for the current quarter. CSFB
upgraded the stock to outperform.

Taser
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libel and misrepresentation. Taser claims the newspaper said their guns
overstated the charge of its gun by a million times–that its punch was as
strong as an electric chair.

The House voted to block CNOOC’s proposed takeover of Unocal. Energy Secretary
Sam Bodman met with Chinese officials Thursday to announce the opening of an
energy office in Beijing.

Standard & Poor’s said it expects the S&P 500 to close at 1255, up
3.6%, and expects corporate earnings to rise 11% in 2005, less than half of
2004’s gains.

The General Motors
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GM’s sales rose 41% in June. The company sold more than 1/2 million cars in
June–the best month for car sales since 1986.  Chevrolet was #1–the top
selling brand in the country. Cadillac sales rose 64%. At Ford, sales fell 3.2% 
Chrysler sales rose 1%.  Toyota sales rose 10%.  Nissan was +14%. GM
closed at 34.65, up 0.65.

Chrysler
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At the end of the first half, the SPX is off 1.70%, the
Dow is off 4.86% and the Nasdaq is off 5.57%.

Among newsletter writers, 55.1% are bullish, the highest level since
March. Bears are 19.1%, the lowest figure since December.

According to a Treasury Department spokesman, “China could move in the next
few months” on revaluing its currency.

Trader talk: last summer was tough trading. What’s in store for this
summer? Specifically, traders are hoping Q3 this year will be better than Q3
last year.

AAA said this could be the biggest driving weekend–ever. This, despite higher gasoline prices.

Thomson Financial predicts the growth rate for the
S&P 500 for Q2 will be 7.1%. Most companies report mid-July.

Here is the YTD performance of selected foreign markets:

France:      +11.2%

Germany    +8.2%

U.K.           +6.5%

Hang Seng  -0.2%

Strong sectors were:   Oil
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+2.41%     Natural Gas  
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+2.25%       

Weak sectors were:  Computer Hardware
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-0.36%      Homebuilders
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Pfizer
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limited benefits.

Automakers report sales today:
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UBS downgraded Pepsi
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citing higher energy costs.

Morgan Stanley upgraded Host Marriot.