Market Rally, Plus, MSO Up 8%–Here’s Why

Stocks rebounded on good internals after yesterday’s losses

as a tame CPI eased inflation fears. Stocks were lifted mid-day after the Fed
minutes showed several members saw upward inflation risk.

Consumer prices inched up in January; the CPI was 0.1%, better than expected.
Core CPI was 0.2%, in line. Oil is slightly lower, but still above $51.
Proctor & Gamble

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led the blue chips higher on a UBS upgrade.

Toll Brothers
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beat by 0.18 and raised their 2005 outlook.
Quarterly profit jumped 120%.

Lowe’s
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beat estimates.

Medco
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will buy Accredo
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for $2.2 billion.

Martha Stewart Living
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posted a narrower Q4 loss. Ad revenues
declined. Martha is due to be released from prison on March 6. MSO has risen
160% in the past year. MSO gained 8% today.

S&P lowered its 2005 growth projections for the semiconductors.

Strong sectors were:  HMOs  
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+1.75%   Oil Services
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+1.62%  Chemicals
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+1.56% 

Weak sectors were:  Disk Drives
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-1.41% 
 Semis
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-0.41%   Gold
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-0.44%

Dow +63.40 10,674.90
Nasdaq +1.59 2031.91
S&P 500 +6.74 1190.92

The dollar was +0.29 at
82.73

Crude Oil was -0.24 at
51.18

Gold was +0.90 to 434.20

ce=”Arial” size=”2″ face=”Arial”>Volume was 1.44 billion on the NYSE and
1.84 billion on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 2149 Up Vol 924
Declining 1160 Down Vol 364
1.85 2.53
Nasdaq
Advancing 1660 Up Vol 996
Declining 1446 Down Vol 702
1.14 1.41

Stocks in the News

Goodyear
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raised Q4 guidance, and now sees Q4 earnings between
0.55 and 0.65.

Applied Signal
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posted flat Q1 results.

Novell
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beat by a penny; revenues rose 8.6%.

Autodesk
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increased quarterly profits. Revenue rose 21%.

This Day in History

1896  Tootsie Roll
introduced.

1945  US flag raised at
Iwo Jima.

Brice Wightman