Here’s What The Fed Did, Plus The Latest On The Richard Grasso Controversy

September 16, 2003
Brice Wightman

Stocks rose
Tuesday as the Fed let rates unchanged,
and said that the upside and downside risks to sustainable growth are “roughly
equal.” Tech issues led the charge once again as
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) projected fourth-quarter results to be in
the high end of its 27 to 29 cent a share estimate. Also, Frank Dunn of
troubled telecom firm Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating)
commented that he expected “somewhat of a strengthening” in its wireless
business. Insurance issues are erasing yesterday’s losses as hurricane Isabel’s
wind speed has slowed from yesterday’s 125 mph to about 105 mph today. In other
news, New York Attorney General Eliot Spitzer charged former
Bank of America‘s
(
BAC |
Quote |
Chart |
News |
PowerRating) Theodore Siphol
with securities fraud and larceny. Bonds were lower.

California State Treasurer Phil
Angelides and the
California Public Employees Retirement System
called upon NYSE Chairman Richard Grasso to resign.
New York State Comptroller Alan Hevesi and North Carolina Treasurer Richard
Moore echoed the request.

In economic news, Consumer
Price Index in August fell by an expected 0.3%. The core CPI rose by
0.1% versus estimates of a rise of 0.2%.

The 10-year U.S. Note
was -110 at 111 270.

The dollar was +0.66 at
96.64.

Gold was -1.60 at
374.10.

Crude Oil was -0.45 at
27.68.

Volume was
1,365,461,000 on
the NYSE, and 1,759,252,000 on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by 2.37, and up over down
volume by 5.33; Nasdaq advancing issues over declining issues at 2.10, and up
volume over down volume at 5.65.

Top Dow stocks were:

Stocks in the news:

International Paper
(
IP |
Quote |
Chart |
News |
PowerRating)
gained 2.9% after Merrill Lynch added the stock to their “Focus 1” list.
Merrill believes that the company is poised to benefit from a recovery in the
paper industry.

Drug maker Isis
Pharmaceuticals
(
ISIS |
Quote |
Chart |
News |
PowerRating) rose 5% after the company’s
experimental diabetes treatment showed promising results in a Phase I clinical
trial. Despite early promise, the drug still has to undergo further testing for
safety and efficacy before it can receive regulatory approval.

Computer peripheral supplier
Standard Microsystems
(
SMSC |
Quote |
Chart |
News |
PowerRating) added almost 5% after the company
reported better-than-expected quarterly results and raised fiscal 2004 guidance.
In its second quarter, the company earned 8 cents a share, compared to 2 cents
in the year-ago quarter. This was 3 cents ahead of consensus estimates. Looking
ahead, the company sees full-year 2004 results between 30 to 35 cents a share,
compared to its previous forecast of 24 to 28 cents a share.

Propane products and services
provider Blue Rhino
(
RINO |
Quote |
Chart |
News |
PowerRating) fell 8% after the company reported
quarterly results that fell below expectations. The company reported
fourth-quarter results before charges of 70 cents a share or 2 cents below
expectations. Revenues jumped 20% but was still below estimates.

Krispy Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating)
fell 0.74 after a Wall Street Journal article said that the sales at
the doughnut maker’s newer stores are coming in below estimates. The article
reported that sales at about 40 stores which opened between last September to
April 2003 were about $35,000 a week or below company norm.

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

Brice
Wightman

bricew@tradingmarkets.com

Here’s What The Fed Did, Plus The Latest On The Richard Grasso Controversy

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