S+P At New Highs, Plus, Earnings After The Close

Stocks were higher on a tame inflation report and
good results from Apple and AMD. The S&P 500 made it six straight
gains and closed at a 4-year high. The Nasdaq closed made a new
high for 2005.

The CPI for June was unchanged.  Core CPI rose +.10, better than expected
jobless claims rose 16,000 to 336,000. The 4-week moving average is 320,750. 
Retail sales for June rose +1.7%, better than expected, driven in part by auto
sales.

Apple (AAPL)
beat by 0.06; revenues were $3.52 billion vs a $3.33 billion estimate. iPod
sales were very strong, quadrupling to 6 million units. The company’s guidance
was a little weak, though.

Advanced Micro
Devices (AMD)
reported 0.03, beating estimates. Flash memory was strong. The Street was
looking for a loss of 0.05. Revenues were $1.26 billion vs $1.22 billion
expected. Citigroup raised its price target to $20.

Yum! Brands (YUM)
beat by 0.06 and guided lower for FY 2005.

Marriot
(
MAR |
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PowerRating) missed by 0.02.

United Health
(
UNH |
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PowerRating) beat by a penny. Earnings grew 36%. The
company also affirmed its outlook.

Taser
(
TASR |
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PowerRating) said a California court dismissed a wrongful death
lawsuit against the company.

After the clkose, Rambus
(
RMBS |
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PowerRating) reported in-line earnings, but
revenues were light. MRO Software
(
MROI |
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PowerRating) beat by 0.02 and beat on
revenues. Digi Int’l
(
DGII |
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PowerRating) missed by 0.02 and issued downside
guidance.

Oil service stocks were weak today.

Lehman boosted its price target on Google
(
GOOG |
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PowerRating) to $350 from
$275.

The auto parts sector was upgraded at Lehman Bros. (VC, TRW)

Trader talk: with the SPX closing at 4-year highs, are you a buyer or should
you take profits?

Strong sectors were:  Airlines
(
$XAL.X |
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PowerRating) +3.95%   Computer Hardware
(
$HWI.X |
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PowerRating) +1.48%       Semis
(
$SOX.X |
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PowerRating) +    
 

Weak sectors were:     Gold
(
$HUI.X |
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PowerRating) -3.07%     Oil Services
(
$OSX.X |
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PowerRating) -2.54%    Natural Gas
(
$XNG.X |
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Chart |
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PowerRating) -2.30%