‘The Best We’ve Seen In Years’

Stocks are
higher after a strong earnings report from GE.

General Electric
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reported earnings that rose 3% to $3.92 billion,
with revenue up at $37 billion. Both numbers beat analysts expectations. Nine of
11 businesses showed double-digit gains with orders growing at a 13% rate. The
company raised the low end of FY 04 forecasts by a penny to $1.55 to $1.60 a
share. Oil prices remained strong, hovering near the $40 level. CEO Jeff Immelt
call the US economy ‘the best we’ve seen in years.’

Abbott Labs

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reported earnings on higher sales of its Humira
drug with earnings of $634.3 million, and revenue up 14% to $4.7 billion. FY EPS
is expected to reach $2.24 a share; revenue for Q3 was guided down to $0.52 a
share. ABT is seeking approval to market its prostate cancer drug.

Dana
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sold its
replacement parts business to Cypress group for $1.1 billion; that unit had 2003
net sales of $2 billion. The deal is expected to close by the end of the
third-quarter.

Dow +31.73 10202.66
S&P 500 +2.23 1110.40
Nasdaq 6.76 1941.32

Strong today are: Disk
Drives

(
DDX.X |
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+2.41%, Semis
(
SOX.X |
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+1.57%, Techs
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+1.07%, Oil Index
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+0.73%.

Weak today are: Amex Gold
Bugs

(
HUI.X |
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-1.13%,  Gold and Silver
(
XAU.X |
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-0.95%,

Economic news release today
include wholesale inventories that jumped up 1.2%.

10-year Notes are +20 at
110 175

The dollar
is -0.03 at 87.73

Gold is -0.70 at 408.80

Crude Oil is -0.27 at
39.80

Volume is 565 million on
the NYSE, and 700 million on the Nasdaq.

Market breadth is positive.

NYSE Issues
Advancing 1684 Up Vol 320
Declining 1313 Down Vol 197
Ratio 1.28 1.62
Nasdaq
Advancing 1612 Up Vol 457
Declining 1244 Down Vol 196
Ratio 1.30 2.33

Stocks in the news:

SAP
(
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rose after the company gave an early preview of Q2 earnings numbers. The company
said they are expecting to report earnings of $2.2 billion with software revenue
up 15% to $612.8 million.

SuperGen
(
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rose after it
reported positive clinical trial results for treatment of MDS patients.

3COM
(
COMS |
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was downgraded by
Piper Jaffray, which cited concerns about the departure of its VP and believe it
may be earnings related.

Unisys
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sank after lowering
Q2 earnings forecasts and now expects EPS of 5 cents a share on revenue of $1.38
billion.

Brice Wightman

bricew@tradingmarkets.com