Wait A Minute…Was This Drug Approved, Or Not?

Stocks were higher, with the
Dow up in triple digits
and the S&P 500
with its best close since 8/13/01, before 9/11.

Oil fell over $3 (7%),
the biggest single-day drop in three years.
The first day of the month
is typically a time when new money comes
into the market, and today is no exception. The Nasdaq hit a 10-month high, with
semis higher in front of Intel’s update tomorrow. The Healthcare Providers Index
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is making an all-time high. Utilities, however, are weak on higher
interest rate concerns.

Data released today shows continuing improvement
in the economy  Manufacturing activity rose in November, with the ISM index
coming in at 57.8 vs. 56.8 in October. It was the 18 straight month of
expansion. October personal savings came +0.2% vs. 0.3% in September. Personal
income in October rose +0.6%; personal spending rose +0.7%. Both were better
than expected. The Fed’s Beige Book showed the economy continues to grow, with
11 of twelve districts showed expansion.

The EIA reported crude inventories rose by
900,000 barrels; gas inventories rose by 3 million barrels. OPEC meets next
week, on Friday.

Sentiment is bullish. Among newsletter writers
surveyed by CNBC, 57.3% are bullish; mid-40’s is typical. 22.9% are bearish;
mid-high 30s is typical here. Sentiment is generally viewed as a contra
indicator and traders who follow this data closely are probably wary with
bullish numbers this high.

GeoPharma
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issued a press
release this morning saying its Mucotrol was approved by the FDA. The stock
traded higher, and was halted mid-day, when the FDA said it was not
approved. The stock remained halted at the close.

Rudy Giuliani’s consulting firm purchased Ernst &
Young’s investment banking unit and is forming Giuliani Capital Advisors LLC.
The new company will advise companies on acquisitions and restructuring.

Microsoft is making its $3/share distribution tomorrow. The total
distribution is $32 billion, the largest dividend paid by a company. 64% of the
float is held by institutions.  Bill Gates will receive $3 billion, which
he will give to charity. Dividends are taxed at a 15% rate, down from 39% last
year.

The QQQs now trade on the Nasdaq.
Symbol: QQQQ. Question: Do the Cubes now become the Quads?

Strong sectors were: Airlines
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+5.59%, Semis
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+3.82% and Healthcare Providers
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+2.56%.

Weak sectors were: Oil Services
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-3.84%, Natural Gas
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-2.25% and Oil
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-1.89%.

Dow +162.20 10590.22
S&P 500 +17.55 1191.37
Nasdaq +41.42 2138.23

The dollar was -0.23 at
81.57

Gold was +1.80 to 453.30

Crude Oil was -3.61 at 45.52

ce=”Arial” size=”2″ face=”Arial”>Volume was 1.76 billion on the NYSE and
2.24 billion on the Nasdaq.

Market breadth was positive.

NYSE Issues
Advancing 2298 Up Vol 1235
Declining 1054 Down Vol 354
Ratio 2.18 3.48
Nasdaq
Advancing 2126 Up Vol 1790
Declining 1016 Down Vol 322
Ratio 2.09 5.55

Stocks in the News.

IBM said it won 2 European deals worth $1 billion.

General Motors
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and Ford
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will announce November
sales results.

Cigna
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raised guidance for 2004 and 2005.

Humana
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guided to the high end of the recent range.

Novellus
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raised its Q4 guidance.

Wendy’s
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said it expects a loss  in the current quarter.

Dollar General
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missed by 0.03.

Fairchild
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said they see Q4 at the high end of guidance.

Omnivision
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reported better-than-expected Q2 earnings.

Raytheon
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raised guidance and is planning a dividend.

Anthem and Wellpoint have completed their merger. Anthem will
be renamed Wellpoint and trade under the symbol WLP.

Brice Wightman