Nice Pop For This IPO!

Stocks are
higher on volume as investors looked to position themselves during
“quadruple-witching”
where four different
types of futures and options contracts expire.

Viacom
(
VIA |
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said its
split-off of Blockbuster
(
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would yield $738 million in cash;
Blockbuster is expected to pay $5 per share to all shareholders. The US current
account deficit widened more than expected, increasing to $144.9 billion — $4
billion higher than the consensus; setting a new record.

Red Hat
(
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reported a seven-fold increase in profit on a 50% gain in sales that missed
revenue expectations. Revenue was $41.6 million with income at $10.7 million.

Oil workers from Norway initiated a strike. Global oil output is expected to be
reduced by 10%. Crude prices hit a 10-day high, trading at $38 a barrel.

Blackboard, Inc. (BBBB)
was priced at $14 and is trading at $21. The company provides online learning
software to colleges and universities.

Dow +37.45 10415.21
S&P 500 +4.50 1136.58
Nasdaq +7.53 1991.24

Strong today are Amex Gold
Bugs

(
HUI.X |
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+2.98%, Gold and Silver
(
XAU.X |
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+2.68%,
Chemicals

(
CEX.X |
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+1.54%, Biotechs 
(
BTK.X |
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+1.40%.

Weak today are Oil Services

(
OSX.X |
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PowerRating)
-0.60%, Techs
(
TXX.X |
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PowerRating)
-0.07%.

Economic news release today
include: a higher current account deficit at $144.9 billion.

10-year Notes are -15 at
108 135

The dollar
is -0.46 at 89.49

Gold is +7.00 at 389.50

Crude Oil is -0.11 at
38.35

Volume is 701,000
million on the NYSE, and 888,000 million on the Nasdaq.

Market breadth is positive.

NYSE Issues
Advancing 1826 Up Vol 484
Declining 1263 Down Vol 207
Ratio 1.45 2.34
Nasdaq
Advancing 1461 Up Vol 535
Declining 1442 Down Vol 326
Ratio 1.01 1.64

Top Dow stocks are:

Alcoa
(
AA |
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PowerRating)
, +2.75%,
Du Pont

(
DD |
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+1.36% Honeywell
(
HON |
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Chart |
News |
PowerRating)
, +1.34%, 3M
(
MMM |
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PowerRating)
,
+1.32%.

Stocks in the news:

Adobe Systems
(
ADBE |
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PowerRating)

reported earnings that rose 70% at $109.4 million, but said for Q3 its operating
margin is expected to be around 30%. Revenue rose to $410.1 million with
strength from Acrobat and Creative Suites software.

Alcoa
(
AA |
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News |
PowerRating)
was higher after
bullish comments from Goldman Sachs citing strong data points to positive
fundamentals for the aluminum market.

Motorola
(
MOT |
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PowerRating)
was downgraded by
Morgan Stanley with a lower price target of $20 a share.

American Healthways
(
AMHC |
Quote |
Chart |
News |
PowerRating)

rallied after reporting a 64% gain in income and raised 2004 outlook. Earnings
reached $7.5 million.

Brice Wightman

bricew@tradingmarkets.com