IPO Action!

Stocks were
slightly higher Tuesday, with strength in brokers and tech outweighing interest
rate and Mid-East worries..
Morgan
Stanley’s

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quarterly profit more than doubled, with net income at
$1.22 billion and revenue up 32% at $6.7 billion. Revenue from its M&A unit rose
130% to $324 million with strong numbers also from its investment banking and
fixed income and equities divisions. Goldman Sachs
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posted
earnings of $695 million with revenue up 28% to $7.68 billion with revenue from
investment banking up 67%. Its fixed come and commodities unit showed a 15%
increase in revenue from a year earlier to $1.89 billion, with equities trading
revenue down 21% at $351 million from a year ago.

General Mills
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will raise prices on several items, including soups, snack foods, and yogurt.

Morgan Stanley reaffirmed its 6.2% increase
target for the S&P 500 and does not expect major movements in the bond market.
QLogic
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was upgraded by Merrill Lynch to “Buy” on valuation,
with a price target of $34.

A New York Federal Reserve Bank study
said there is no evidence of a housing bubble.

A federal judge said a discrimination suit
brought by some female Wal-Mart employees may have class-action status,
creating the largest civil rights class action ever certified against a private
company.

In IPO action, Jackson Hewitt
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debuted and closed 1.5% higher;
Momenta Pharm
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rose +20% and Senomyx
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closed
at 6.75, up 0.50. SalesForce.com boosted its IPO price to between $9 and
$10 from $7.50 – $8.50. After two delays, the 10 million share offering is
expected to trade tomorrow with the symbol CRM.

3Com
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  lost less
money in the 4th quarter, reporting (0.04); consensus was (0.10).

Dow +23.60 10395.07
S&P 500 +4.11 1134.41
Nasdaq +19.77 1994.15

Strong today were Hardware
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+5.23%, Tech
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+1.97%, Semis
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+1.97%, Networking
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+1.58%.

Weak today were Retail
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,
-1.38%, Healthcare
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  -0.99%

10-year Notes were -30
at 108 145

The dollar
was +0.14 at 89.42

Gold was +0.40 at 394.60

Crude Oil was +0.43 at
38.20

Volume was 1.38 billion
on the NYSE, and 1.63 billion on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 1696 Up Vol 769
Declining 1570 Down Vol 507
Ratio 1.08 1.51
Nasdaq
Advancing 1767 Up Vol 1081
Declining 1364 Down Vol 472
Ratio 1.29 2.29

Stocks in the news:

PalmOne
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turned a profit of $13.3 million on revenue of $267.3 million, both numbers way
ahead of analyst consensus. The company upped full year forecasts to $1.20 a
share on revenue of $1.25 billion. PLMO closed up 37% at 29.40.

Kroger
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reported earnings that
fell to $262.8 million due to a labor dispute . Same-store food sales rose by
1.3% since January.

Nextel Partners
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raised its 2004 outlook and expects EBITDA to reach $340 million.

Target
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was lower after
reporting same-store sales will be at the low end of previous forecasts of a
5-7% gain.

Brice Wightman

bricew@tradingmarkets.com