This Report Will Impact Tomorrow’s Trading

Stocks were higher on news from two Dow components. Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) received a large order–at least 20 777 aircraft–from
Qatar Airways. Also, United Technologies
(
UTX |
Quote |
Chart |
News |
PowerRating) reaffirmed its FY 2005
outlook and said it is developing a
helicopter with Boeing.

The Dow and S&P remain at the top of a 2-month trading range.  The REIT
Index is near a historic high and the Dow Utilities are at 4-year highs.

Morgan Stanley
(
MWD |
Quote |
Chart |
News |
PowerRating) guided lower, citing weakened market
conditions. CEO Phil Purcell announced he is stepping down.

Taser
(
TASR |
Quote |
Chart |
News |
PowerRating) received a $1.4 million order from the US Military.

News Corp.
(
NWS |
Quote |
Chart |
News |
PowerRating) announced an up to $3 billion stock buyback,
“effective immediately.”

The Russell 3000 is rebalancing. Among the 208 stocks being added are:
News
Corporation (NWS), Morningstar (MORN), eLoan (EELN) MCI (MCIP) and
Denny’s (DENN). Deletions include: Able Labs (ABRX), Cal Maine
(CALM), Cardiac Science (DFIB) and Genelabs (GNLB). The final
membership lists will be announced on July 1. Russell indices currently have
over $2 trillion in assets benchmarked to them.

The dollar is at a 9-month high vs the euro; traders are wondering
what affect that will have on Q2 profits. Oil prices surged to a 7-week
high. OPEC meets this week.

Look for the following companies to report this week:  Lehman Bros
(
LEH |
Quote |
Chart |
News |
PowerRating) (Tues before the open, estimate 2.22), Best Buy (BBY) (also
Tuesday before the open, estimate 0.30), Bear Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating),
(Wednesday, estimate 2.37), Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating) (Thursday, estimate
1.90) and KB Home (KBH) Thursday after the close, estimate 1.77).

Also look for the PPI on Tuesday at 0830 ET: the market expects -0.2% and
Core PPI 0.2%.

Strong sectors were:  Gold
(
$HUI.X |
Quote |
Chart |
News |
PowerRating)
+1.37%       Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating)
+1.16%     Natural Gas
(
$XNG.X |
Quote |
Chart |
News |
PowerRating)
+1.12% 

Weak sectors were:   Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) -1.49%   
 Brokers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) -0.21% 

McDonald’s fell 1.4% after a Mad Cow scare on Friday.

Nike
(
NKE |
Quote |
Chart |
News |
PowerRating) was the subject of a positive article in Barron’s
over the weekend.

Piper Jaffray cut Wendy’s
(
WEN |
Quote |
Chart |
News |
PowerRating) to
underperform.

Elan
(
ELN |
Quote |
Chart |
News |
PowerRating) will be in focus on a fifth Tysabri PML case. 

Legg Mason downgraded Men’s Wearhouse
(
MW |
Quote |
Chart |
News |
PowerRating).

Connetics
(
CNTC |
Quote |
Chart |
News |
PowerRating) i slower after the FDA did not approve its Velac
acne treatment.

Dreamworks
(
DWA |
Quote |
Chart |
News |
PowerRating) is making another new low. Two new
releases–“Madagascar” and “Mr. & Mrs. Smith”–are not doing well at the box
office.