Martha’s Company Stock Up 12% On Speculation

Stocks were higher
Tuesday.

The Fed increased rates by

1/4 point, as expected. It was the third interest rate rise this year.

Housing starts rose +0.6%
in August, more than expected and to the highest level in five months. Building
permits, however, fell more than expected.

New highs today include
Amerada Hess

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and Conoco Phillips
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.

Morgan Stanley issued a
report saying utilities are overpriced and cited insider selling outpacing
buying. The Utility Index
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is trading near 52-week highs.

A Wall Street Journal survey of
corporate recruiters ranked the University of Michigan the top business
school in the country. Graduates’ first- year average annual salary is $85,000,
plus a $15,000 bonus. Carnegie Mellon (Tepper) and Dartmouth
(Tuck) were #2 and #3. Purdue (Krannert) was named the #1 regional
business school. The full survey comes out in Wednesday’s Journal.

The government is in court today with a $280
billion civil racketeering suit against tobacco companies. The government claims
tobacco companies ran the most elaborate public relations scam in history.
Altria Group
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is trading down 1.04 at 46.04.

Home Depot
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will hire up to 10,000
veterans this year. CEO Bob Nardelli told Fortune Magazine the company
had “tremendous success” with hiring veterans.

Martha Stewart will begin her 5-month prison term
on October 8, either at Danbury, CT, or Coleman. FL. MSO shares rose 12% on
speculation she might do a TV show with “Survivor” producer Mark Burnett, who
was quoted as saying “I’m very interested in reinventing her show.”

Bill Gates gets a raise. The Microsoft CEO
received $901.667 in salary for the fiscal year ended June, up 4% from the year
earlier. Gates’ net worth is estimated at $46 billion. In November, the
Microsoft is scheduled to pay out a special $3/share dividend.

For the first time in seven years, beer sales
declined, down 0.3% to 2.8 billion cases. The low carb diet fad and more
competition from spirits and wine are cited.

Autozone
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missed by 0.03 and was
light on revenues; the stock is trading down after hours. Scholastic Corp.
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beat by 0.07. Biomarin
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guided lower for 2004.Tibco
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beat by 0.02. Jabil Circuit
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beat by a penny, as did
Christopher & Banks
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.

Dow +40.04 10244.93
S&P 500 +7.10 1129.30
Nasdaq +13.10 1921.17

Strong today were: Oil
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+2.94%, Homebuilders
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+2.59%, Brokers
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+2.55%.

Weak were: Consumer
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-0.17%.

10-year Notes were +025 at 113 095

The dollar
was -0.90 at 88.05

Gold was +3.80 at 408

Crude Oil was +0.56 at 46.76

Volume was 1.31 billion
on the NYSE and 1.53 billion on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 2321 Up Vol 960
Declining 970 Down Vol 341
Ratio 2.39 2.81
Nasdaq
Advancing 2021 Up Vol 437
Declining 1059 Down Vol 267
Ratio 1.90 1.63

Stocks in the News

Lehman Brothers
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reported higher quarterly earnings.

Goldman Sachs
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reported Q3 of $1.74 vs. $1.43, beating handily.

General MIlls
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reported a larger than expected drop in
quarterly earnings. The company cited higher ingredient costs.

Adobe Systems
(ADBE)
beat by 0.04 and guided higher.

Palm One
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beat by 0.23 and guided lower.

KB Home
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beat estimates, but sales were off estimates.

BJ Services
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was upgraded at Smith Barney

InVision
(
INVN)
won a contract from the Department of Homeland Security to develop an
automated system to identify air-borne pathogens.

Power Integrations
(POWI)
lowered guidance for Q3.

Red Hat
(RHAT)
beat by a penny but was light on revenues.
The
company also guided conservatively going forward.

RF Micro Devices (RFMD) cut its Q2 revenue
forecast and guidance.

Ask Jeeves (ASKJ) unveiled a personalized web
search feature.

Brice Wightman