This Report Will Impact Tomorrow’s Trading

Stocks were higher on news from two Dow components. Boeing
(
BA |
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received a large order–at least 20 777 aircraft–from
Qatar Airways. Also, United Technologies
(
UTX |
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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 |
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guided lower, citing weakened market
conditions. CEO Phil Purcell announced he is stepping down.

Taser
(
TASR |
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received a $1.4 million order from the US Military.

News Corp.
(
NWS |
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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 |
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News |
PowerRating)
(Tues before the open, estimate 2.22), Best Buy (BBY) (also
Tuesday before the open, estimate 0.30), Bear Stearns
(
BSC |
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,
(Wednesday, estimate 2.37), Goldman Sachs
(
GS |
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(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 |
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PowerRating)

+1.37%       Software
(
$GSO.X |
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+1.16%     Natural Gas
(
$XNG.X |
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+1.12% 

      

Weak sectors were:   Airlines
(
$XAL.X |
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-1.49%   
 Brokers
(
$XBD.X |
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-0.21% 

Dow +9.93 10,522.56
Nasdaq +5.96 2068.96
S&P 500 +2.70 1200.81

The dollar was +0.26 at
88.90

Crude Oil was +2.02 at
56.70

Gold was +4.70 at 428.80

ce=”Arial” size=”2″ face=”Arial”>Volume was 1.25 billion on the NYSE and
1.44 billion on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 1838 Up Vol 889
Declining 1435 Down Vol 512
1.28 1.73
Nasdaq
Advancing 1526 Up Vol 739
Declining 1503 Down Vol 498
1.01 1.48

Stocks in the News

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

Nike
(
NKE |
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was the subject of a positive article in Barron’s
over the weekend.

Piper Jaffray cut Wendy’s
(
WEN |
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to
underperform.

Elan
(
ELN |
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will be in focus on a fifth Tysabri PML case. 

Legg Mason downgraded Men’s Wearhouse
(
MW |
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.

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

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

Brice Wightman