Intel Calls Jump; Stocks Higher

Stocks are higher Monday ahead of the Federal Reserve meeting on Tuesday. Top
sectors of the day are biotechs and Internets while forest and paper products
and retailers are the weakest.

At mid-day, the VIX has increased .31 to 19.73.

The OEX September 815 calls are up 2 3/4 to 18 7/8.

Among bigger movers on heavier-than-average volume:

Intel is up 3 1/4 to 73 13/16 on enthusiasm over the release of its Pentium 4
chip. The Intel
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September 75 calls are up 1 to 2 3/8 on double average volume.

America Online
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is pacing nice gains in the Net sector and is trading up 2 5/8
to 57 1/2. The AOL September 55 calls are up 1 1/4 to 3 7/8 on more than 6000
contracts.

Palm
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is up 2 3/16 to 38 1/8 while the Palm November 40 calls are
up 1 3/8 to 5 on nearly 4000 contracts.

MicroStrategy
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, which traded as high as 333 in March before
collapsing is bouncing back Monday with a gain of 3 3/4 to 24 3/4. The
MicroStrategy September 25 calls are up 1 5/8 to 2 3/4 on quadruple the average
volume.

Looking ahead, all eyes will be on the Fed Tuesday as traders look for clues
as to the mindset Fed members have regarding rates. After Tuesday’s Fed meeting,
the next scheduled FOMC meeting is in October.