Stocks Lower, Plus, Viacom Busted!

Stocks are lower–with
the Dow down by triple digits–led by disappointing earnings from Morgan Stanley
and a Cisco downgrade.

Higher oil prices added to the downside pressure on stocks. A sharp fall in
crude inventories due to Hurricane Ivan sent oil near $47.

Morgan Stanley
(
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missed, reporting 0.76 vs. a 0.95 estimate.
Trading revenues fell 62%. Cisco
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was downgraded at Deutsche
Bank.

The FCC fined Viacom $550,000–$27,500 for
each affililiate–for airing the controversial Super Bowl halftime show
featuring Janet Jackson.

Dow -111.34 10133.66
S&P 500 -12.56 1116.71
Nasdaq -27.42 1893.76

Strong sectors are: Gold
(
XAU.X |
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+0.01%.

Weak are: Semis
(
SOX.X |
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-2.48%, Brokers
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+1.76%, Biotech
(
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-2.04%.

10-year Notes are -030 at 113 130

The dollar
is +0.40 at 88.53

Gold is -1.30 at 406.40

Crude Oil is +0.74 at 47.50

Volume is 620 million on
the NYSE and 775 million on the Nasdaq.

Market breadth is negative.

NYSE Issues
Advancing 809 Up Vol 637
Declining 2318 Down Vol 2257
Ratio 2.86 3.54
Nasdaq
Advancing 79 Up Vol 171
Declining 480 Down Vol 554
Ratio 6.07 3.23

Stocks in the News

Bear Stearns
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beat, reporting $2.09 vs. $1.98.

Federal Express’
(
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profits more than doubled.

Autozone
(
AZO |
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missed and was light on revenues.

Eastman Kodak
(
EK |
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backed its forecast, saying sales of digital
products are growing faster than expected.

General Motors
(
GM |
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will cut 3,000 European jobs.

Jabil Circuits
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beat by a penny.

Christopher & Banks
(
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was in-line, but sales fell short of
estimates.

Lucent
(
LU |
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is planning cuts in retiree health care benefits.

Bed Bath & Beyond
(
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will report after the close. Estimates
are 0.38.

Interstate Bakeries
(
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filed for bankruptcy.

Biomarin (BMRN)
guided lower for 2004
.

Brice Wightman