The Fed Meets Tomorrow. Here’s What To Expect

Stocks were higher on a good sales number and Wall
Street approval of a big merger. The Dow closed at its high and the
S&P made a 3-year closing high.

Retail sales for November rose +0.1%, better than expected; +0.5% ex
auto.

Peoplesoft
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billion bid ($26.50/share). The deal is expected to be completed early January.

Sprint is in talks to buy Nextel for $26 billion.
The Wall Street Journal said an announcement could come as
early as Wednesday. The New York Times reported that Verizon
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and Vodafone
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Twenty-one IPOs are coming to market this week–the largest number highest since
since September 2000. Of note: Blue Linx (BXC) will offer 9.5 million
shares between $15-$17; the company is the largest distributor of  building
products in the US. Las
Vegas Sands, expected to offer 23.8 million shares at $24-$26, up from the
original $20-$22. Proposed
symbol: LVS.

The Fed meets tomorrow and is widely expected to raise rates by 1/4 point.

Remember: options and futures expire on Friday.

Strong sectors were: Natural Gas
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+1.71%.

Conextant
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Taser
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technology reduced deadly force litigation and caused fewer injuries.

IMAX
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JP Morgan upgraded the video game group, which includes ERTS, THQI and TTWO.

Brice Wightman