If Cattle Testing Increases, Here’s A Company That May Benefit

Stocks are
flat today.
Jobless claims released
today indicated a recovering economy with weekly claims falling to a 3-year low.
Weekly claims fell by 15,000 to 339,000 indicating a growing economy according
to Patrick Fearon of A.G. Edwards and Sons. The dollar hit another low, amid
terrorist fears in the US during New Year celebrations, it now trades at $1.26
per Euro, a 17% drop for the year. Laggard Merck
(
MRK |
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PowerRating)
is up 1%
today after it resubmitted a marketing application to the FDA for its Arcoxia
arthritis medication. MasterCard Advisors reported that toy sales at Toys R
US

(
TOY |
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PowerRating)
were down 7.7% compared with last year, citing heavy competition
from discount retailers such as Target
(
TGT |
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and Wal-Mart
(
WMT |
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.

Dow +0.60
10425.30
S&P 500 -1.18
11008.53
Nasdaq
-10.88

1998.98

The day’s leading sectors are
Oils
(
OIX.X |
Quote |
Chart |
News |
PowerRating)
+0.40%,
Pharmaceuticals

(
DRG.X |
Quote |
Chart |
News |
PowerRating)
+0.33%,
Chemicals
(
CEX.X |
Quote |
Chart |
News |
PowerRating)
+0.28%, Telecoms [XTC.X|
XTC.X]
+0.24%, Networking


(
GIP.X |
Quote |
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News |
PowerRating)
+0.15%
,

Weak today is Oil Service
Sector

(
OSX.X |
Quote |
Chart |
News |
PowerRating)
-1.74%, and Gold and Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating)

-1.32%.

Economic news releases included
initial claims that dropped by 15,000 to 339,000.

10-year Notes are +60
at 112 095

Dollar is +0.01 at 87.38

Gold is -1.10 at 416.10

Crude Oil is -0.07 at
32.72

Volume is 400,000,000 on
the NYSE, and 849,000,000 on the Nasdaq.

Market breadth is Negative

NYSE Issues
Advancing 1446 Up Vol 176
Declining 1656 Down Vol 194
Ratio 1.14 1.11
Nasdaq
Advancing 1140 Up Vol 441
Declining 1942 Down Vol 391
Ratio 1.72 1.36

Top Dow stocks are:

Merck
(
MRK |
Quote |
Chart |
News |
PowerRating)
, +1.26% at 46.09,
Eastman Kodak
[EK|
EK],
+1.23% at 25.70, Honeywell |
HON|HON],
+0.96% at 33.31, and AT&T [T|
T],
+0.64% at 20.10.

Stocks in the news:

Lamson & Sessions
(
LMS |
Quote |
Chart |
News |
PowerRating)
issued an earnings warning, citing major price competition in its pipe business. It now
expects to earn 2 to 4 cents a share, down from previous forecasts of 10 cents. LMS is trading 10% lower.

Orchid Biosciences
(
ORCH |
Quote |
Chart |
News |
PowerRating)
rose 30% on increasing demand for its animal food traceability DNA test program. It is involved in diagnostic
tests for scrapie, a mad-cow-like disease that affects sheep. The U.S.
government and the cattle industry are considering wider testing for BSE.

Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating)
is up 6% after it was
awarded a multi-year contract to support the US Department of Defense’s Global
Grid Bandwidth Expansion program.

JD Powers reported that more Chevrolet
(
GM |
Quote |
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News |
PowerRating)

owners are more likely to buy another Chevy — 60.8% — when they go out to buy
a new car. Toyota
(
TM |
Quote |
Chart |
News |
PowerRating)
came in second, with 59.4%.

bricew@tradingmarkets.com