Lots Of Earnings Action You Need To Be Aware Of For Tomorrow’s Open

The Dow and
SPX gained while the Nasdaq fell slightly Wednesday.

The Dow made a 22-month high. Housing
starts rose by 1.7% to 2.08 million, the fastest rate since 1984. Merrill
Lynch

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recorded a record $1.2 billion profit for the fourth
quarter. Investment banking business and sales of stocks and bonds contributed
to the strong numbers. Net revenue for the quarter rose 17% to $4.9 billion. For
fiscal year 2003, net income came in at $4 billion on revenues of $20.2
billion. Lucent
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was in the black for the second straight quarter,
recording a $349 million profit and beating analyst consensus. Sales rose by 9%
to $2.26 billion, but the company did not raise its 2004 outlook. Seagate
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warned that it might miss third-quarter and full-year estimates
because of high inventories and lower profit margins.

Dow
+94.96

10623.62
S&P 500
+8.85
1147.62
Nasdaq
-5.53

2142.45

The day’s leading sectors were
Biotech
(
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+2.12%, Airlines
(
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+2.12%,  Utility

(
UTY.X |
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+01.78%,
Insurance
(
IUX.X |
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+0.72%, and Healthcare
(
XBD.X |
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+1.63%.

Weak today were Disk Drives

(
DDX.X |
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-5.06%, and Hardware
(
GHA.X |
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-3.31%.

Economic news releases today
included housing starts rising to 2.088 million, and building permits that rose
to 1.924.

10-year Notes were +050
at 114 06

The dollar
was -0.33 at 86.38

Gold was -1.99 at 410.59

Crude Oil was -0.24 at
34.58

Volume was
1,757,546,000 on
the NYSE, and
2,404,232,000 on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 2071 Up Vol
1026
Declining 1218 Down Vol
721
Ratio 1.70 1.42
Nasdaq
Advancing 1517 Up Vol
838
Declining 1688 Down Vol
1516
Ratio 1.11 3.01

Stocks
in the news:

After the close, eBay
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reported
pro forma earnings of .24 vs .22 (.21 vs .22 GAAP) and guided higher for ’04.
Net income was +61% and revenue rose 56%. The company raised 2004 revenue
targets to $3 billlion. Qualcomm
(
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came in with .51 vs. .48 and
raised ’04 EPS to 1.56 – 1.61. Starbucks
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reported .27 vs. .26
on $1.3B vs $1.25B revenue and said it will open 1300 new stores this year.
Siebel

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was in-line as revenues fell year/year.  Symantec
(
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beat by .05,  Sandisk
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is trading down 9% in
after market trading after reporting a double of sales and announcing a 2:1
stock split. Intel
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said it would double its stock dividend to
.04 per quarter. Computer Associates
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beat by a penny.

JP Morgan
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JPM |
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posted strong profits
with higher activity in its investment banking unit and fewer bad loans, earning
$1.86 billion on revenue of $7.9 billion.

Charter One Financial
(
CF |
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recorded
fourth-quarter earnings of $158.2 million. The company plans to prepay $2.25
billion in Federal Home Loan Bank advances in January. It will also issue
dividends of $0.26 per share.

Motorola
(
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reported earnings of
$489 million for the quarter on sales of $8 billion. It also received a couple
of upgrades from brokerage houses such as Wells Fargo, Blaylock &
Partners. Analysts do not expect last quarter’s shipment delays to recur, and
forecast higher cell phone sales for the next quarter.

Harley-Davidson
(
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reported a 22%
fourth-quarter increase to $182 million on revenue of $1.16 billion. A total of
77,000 motorcycles were shipped for the quarter, up 17%. The company reiterated
its 2004 target of 317,000 units.

bricew@tradingmarkets.com