Upgrades Lift Market. Are You In This Sector?

Stocks are higher on two Dow component upgrades and
a chip sector upgrade.
Construction spending for January rose a
better than expected +0.7%. The SM was 55.3 in February, slightly lower than
expected, vs. 56.4 in January.

Intel
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was upgraded at JP Morgan, as was Texas
Instruments

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. The firm upgraded the entire semiconductor sector.

Marsh & McLennan
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reported a quarterly loss of 1.28/share vs.
a 0.69 profit last year. The company will lay off 2500 employees and will cut
its dividend in half.

Continental Airlines
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reached a tentative agreement with
pilots, mechanics and flight attendants. The company expects to save $500
million per year under the new agreements.

Johnson & Johnson
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upgraded at Merrill Lynch, to ‘buy.’

Interest rates are higher and oil service stocks are lower today, including
BHI and TDW. Refiners are lower, too: SUN, TSO, NBL, AHC.

It seems fewer companies are giving guidance. 72% gave guidance in 2003; in
2004 that number dropped to 55% and looks to be even lower this year.

Strong sectors are: Airlines
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$XAL.X |
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-1.66%   Semis
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SOX.X |
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+1.54%   Drugs
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+1.29%   

Weak sectors are: Oil Services
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-2.43%   Gold  
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$HUI.X |
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-2.10%    
Natural Gas
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-1.96%

Dow +67.25 10,833.48
Nasdaq +12.97 2064.69
S&P 500 +6.72 1210.32

The dollar is +0.22 at
82.73

Crude Oil is -0.75 at
51.75

Gold is -2.60 to 431.60

ce=”Arial” size=”2″ face=”Arial”>Volume is 744 million on the NYSE and 1 billion on the Nasdaq.

Market breadth is positive.

NYSE Issues
Advancing 1894 Up Vol 435
Declining 1247 Down Vol 234
1.51 1.85
Nasdaq
Advancing 1671 Up Vol 602
Declining 1271 Down Vol 235
1.31 2.56

Stocks in the News

XM Satellite Radio
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was the winner in a Smart Money
comparison of satellite radio music channels.

Piper Jaffray said that Elan
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is worth $10.

Smithfield Foods
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reported earnings that doubled.

Brice Wightman