Russell Rebalancing–Here Are A Few Names To Watch

Stocks are higher on news from two Dow components. Boeing
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BA |
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received a large order–at least 20 777 aircraft–from
Qatar Airways. Also, United Technologies
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reaffirmed its FY 2005
outlook and said it is developing a
helicopter with Boeing.

Morgan Stanley
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guided lower, citing weakened market
conditions. CEO Phil Purcell announced he is stepping down.

Taser
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received a $1.4 million order from the US Military.

News Corp.
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announced an up to $3 billion stock buyback,
“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
(
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(Tues, estimate 2.22), Bear Stearns
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, (Wednesday,
estimate 2.37)  and Goldman Sachs
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Thursday, estimate 1.90)..

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

      

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

Dow +66.09 10,578.82
Nasdaq +12.80 2075.80
S&P 500 +6.78 1204.89

The dollar is +0.61 at
89.30

Crude Oil is +0.52 at
55.20

Gold is +4.70 at 428.80

ce=”Arial” size=”2″ face=”Arial”>Volume is 670 million on the NYSE and
642 million on the Nasdaq.

Market breadth is positive.

NYSE Issues
Advancing 1907 Up Vol 454
Declining 1146 Down Vol 139
1.66 3.26
Nasdaq
Advancing 1595 Up Vol 419
Declining 1203 Down Vol 163
1.32 2.57

Stocks in the News

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

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

Piper Jaffary cut Wendy’s
(
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to
underperform.

Elan
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will be in focus on a fifth Tysabri PML case. 

Legg Mason downgraded Men’s Wearhouse
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.

Connetics
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i slower after the FDA did not approve its Velac
acne treatment.

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

Brice Wightman