IPO Up $6!

June 23, 2004
Brice Wightman

Stocks were
green Wednesday as the market rallied strongly the last hour on the best volume
in several weeks. Transports hit a
52-week high and the Dow and S&P broke out of a minor trading range, along with
energy stocks. Boeing (BA), 3M (MMM), and Tyco (TYC) all traded near 52-week
highs. The Bank of England voted to raise rates by 25 basis points. AT&T
(
T |
Quote |
Chart |
News |
PowerRating) said they would drop local service for residential customers in seven
states — affecting 38 million Americans — shortly after the court threw out
regulations to provide cheap access to local carriers such as AT&T. MCI is
expected to follow suit due to the higher rates the Baby Bell companies would
charge.

General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) said they will move its Asia-Pacific headquarters
from Singapore to Shanghai, China and spend $250 million with a local partner.
The company intends to raise annual output to 1.3 million units by 2007 as it
attempts to gain market share.

The Salesforce.com
(
CRM |
Quote |
Chart |
News |
PowerRating)
IPO was priced at $11 a share and surged over six dollars. The company is
involved in customer relationship management (thus, the symbol) software.
Critics say their software is “one size fits all,” whereas competitor Seibel
offers customizable software. CRM closed at 17.21.

The SEC began its formal probe of Career Education
(
CECO |
Quote |
Chart |
News |
PowerRating), which is
accused of falsifying student records. 10 insiders have sold more than a million
shares over the last 2 months.

Earnings estimates for the S&P increased +20.5% in Q2 and for Q4, analysts
expect 20+% growth.

The
Mortgage Bankers Association said
applications rose last week, by
0.1%.

Comdex,
the once highly popular computer trade show held in Las Vegas, has been
cancelled this year by the organizer, who said the conference has seen declining
attendance over the past few years. In 1998, the show attracted 212,000
visitors; last year, only 40,000 .

Bank of
America
(
BAC |
Quote |
Chart |
News |
PowerRating) announced a 2:1 stock split effective 8/27 and a 12.5%
increase in its dividend.

Dow	+84.50	10479.57
S&P 500	+9.63	1144.04
Nasdaq	+26.83	2020.98

10-year Notes were +030
at 108 175

The dollar
was -0.01 at 89.43

Gold was -0.5 at 394.60

Crude Oil was -0.60 at
37.65

Volume was 1.44 million
on the NYSE and 1.78 million on the Nasdaq.

Market breadth was positive.

NYSE	Issues
Advancing	2278	Up Vol 1037
Declining	977	Down Vol 249
Ratio	2.33	4.16
Nasdaq
Advancing	2125	Up Vol 1409
Declining	997	Down Vol 273
Ratio	2.13	5.16

Stocks in the news:

SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating) said it
would build a new fiber optic network that is expected to cost at least $4
billion over the next five years in an attempt to better compete with cable
companies.

RJ Reynolds
(
RJR |
Quote |
Chart |
News |
PowerRating)
rose after US antitrust authorities approved its deal to purchase the US assets
of British American Tobacco.

Mylan Laboratories
(
MYL |
Quote |
Chart |
News |
PowerRating) sued the
FDA for delaying the launch of its generic version of Duragesic pain relief skin
patch and withdrew its earnings forecast. Investors dumped its shares, which
plummeted 8%.

OraSure
(
OSUR |
Quote |
Chart |
News |
PowerRating) received FDA
approval for its saliva test for detecting HIV-2 virus.

Brice Wightman

bricew@tradingmarkets.com

IPO Up $6!

BUY THE FEAR, SELL THE GREED

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