Stocks In Rally Mode

Stocks are in rally mode mid-session, boosted by
lower crude prices and news that some Gulf oil rigs are operational.
Crude oil is off 1.1%. The market also got a
lift from new economic data. The ISM services Index rose to 65.0% in August, up
from 60.5% in July

Several Dow stocks are in the news: Caterpillar
(
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downgraded to neutral at Merrill Lynch.  Coca Cola
(
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raised to a buy at Bank of America. Deutsche Bank cut GM’s
(
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to sell from hold.

XM Satellite Radio
(
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women and signed “The Ellen DeGeneres Show” as well as the new “Tyra Banks
Show.”

Carnival Cruise Lines
(
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0.01 – 0.03. Several ships have been chartered to the Military Sealift Command
on the behalf of FEMA.

Cisco
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target.

The Wall Street Journal reports that home and car insurance may spike
in the wake of Katrina. In 1992, after hurricane Andrew, policies became
costlier and deductibles in Florida rose.

Strong Sectors are:  Biotech 
(
BTK |
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+1.98%    
 Airlines 
(
XAL |
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+1.38%     Retail 

(
RLX |
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+0.42% 

Weak sectors are:  Gold 
(
XAU |
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Oil Services 

(
OSX |
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-0.59%     Oil 

(
XOI |
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-0.43%   

Barrons’ discussed hurricane damage beneficiaries, including Texas
Industries
(
TXI |
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(
NUE |
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(
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PowerRating).

True Religion
(
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Barron’s. The company’s jeans are quite popular, worn by Jennifer Lopez and
Justin Timberlake.

GlaxoSmithKline
(
GSK |
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PowerRating) said a study showed Arixtra was as effective
in preventing death, heart attack at nine days as competitor Lovenax/Clexane.

Brice Wightman