Russell Rebalancing–Here Are A Few Names To Watch

Stocks are higher on news from two Dow components. Boeing
(
BA |
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PowerRating) received a large order–at least 20 777 aircraft–from
Qatar Airways. Also, United Technologies
(
UTX |
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outlook and said it is developing a
helicopter with Boeing.

Morgan Stanley
(
MWD |
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conditions. CEO Phil Purcell announced he is stepping down.

Taser
(
TASR |
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PowerRating) received a $1.4 million order from the US Military.

News Corp.
(
NWS |
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“effective immediately.”.

The Russell 3000 is rebalancing. Among the 208 stocks being added are:
News
Corporation (NWS), Morningstar (MORN), eLoan (EELN) MCI (MCIP) and
Denny’s (DENN). Deletions include: Able Labs (ABRX), Cal Maine
(CALM), Cardiac Science (DFIB) and Genelabs (GNLB). The final
membership lists will be announced on July 1. Russell indices currently have
over $2 trillion in assets benchmarked to them.

The dollar is at a 9-month high vs the euro; traders are wondering
what affect that will have on Q2 profits. OPEC meets this week.

Look for the following companies to report this week:  Lehman Bros
(
LEH |
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PowerRating) (Tues, estimate 2.22), Bear Stearns
(
BSC |
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PowerRating), (Wednesday,
estimate 2.37)  and Goldman Sachs
(
GS |
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PowerRating) Thursday, estimate 1.90)..

Strong sectors are:  Gold
(
$HUI.X |
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+1.48%       Software
(
$GSO.X |
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PowerRating)
+1.24%      

Weak sectors are:   Airlines
(
$XAL.X |
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PowerRating) -2.65%   Oil Services
(
$OSX.X |
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PowerRating)
-0.63%  
 

McDonald’s will be in focus after a Mad Cow scare.

Nike
(
NKE |
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PowerRating) was the subject of a positive article in Barron’s
over the weekend.

Piper Jaffary cut Wendy’s
(
WEN |
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PowerRating) to
underperform.

Elan
(
ELN |
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PowerRating) will be in focus on a fifth Tysabri PML case. 

Legg Mason downgraded Men’s Wearhouse
(
MW |
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PowerRating).

Connetics
(
CNTC |
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PowerRating) i slower after the FDA did not approve its Velac
acne treatment.

Dreamworks
(
DWA |
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PowerRating) is making another new low. Two new
releases–“Madagascar” and “Mr. & Mrs. Smith”–are not doing well at the box
office.