What To Watch For Tomorrow Morning, Plus, Who Has Big Q2 Contracts

October 2, 2003
Brice Wightman

Stocks were
higher Thursday, holding yesterday’s gains.
Conviction was lacking, however, as many traders
were waiting on the sidelines waiting for the September jobs report, due before
the open Friday. Stocks were relatively quiet after yesterday’s big gains and
more worse-than-expected economic data. First time jobless claims came in higher
than expected under the 400K level, which is the dividing line between job
growth and job loss.

In economic news, Initial
Jobless Claims came in at 399K compared to an expected 395K. Factory
Orders in August fell by 0.8% compared to an expected drop of 0.5%.

The 10-year U.S. Note
is -195 at 114 005.

The dollar was +0.03 at
92.42.

Gold was -3.30 at 383.20.

Crude Oil was +0.39 at
29.84.

Volume was
1,267,442,000 on
the NYSE, and 1,595,935,000 on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by 1.51 and up over down volume
by 1.8; Nasdaq advancing issues over declining issues at 1.22, and up volume
over down volume at 1.22.

Top Dow stocks
were:

Stocks in
the news:

Dow component Caterpillar

(
CAT |
Quote |
Chart |
News |
PowerRating) was higher by 1.90% after CSFB commented that the company is in
position to win a government order for power generation in Iraq. The firm also
said that if Caterpillar does get the order, it could boost there 2004 earnings
by at least 25%.

Network communications company
UTStarcom
(
UTSI |
Quote |
Chart |
News |
PowerRating) rose 7% after the company raised its
third-quarter and full-year outlook. Due to better-than -xpected growth in its
Chinese business segments, the company now sees third-quarter revenues between
$570 to $580 million. This is up from its previous forecast of $495 million to
$505 million. Earnings for the third quarter are now estimated to be 44 to 45
cents a share compared to its previous forecast of 42 to 43 cents a share.
Full-year revenues are now expected at $1.93 billion to $1.94 billion and
earnings are now expected at $1.55 to $1.56 a share.

CTI Molecular
(
CTMI |
Quote |
Chart |
News |
PowerRating)
fell 10% after the company lowered its fourth-quarter and full-year
profit outlook. Due to lower shipments of its medical scanners, pricing
pressures, and transaction delays, the company now sees fourth-quarter results
of 11 to 13 cents a share compared to current consensus estimates of 20 cents a
share. Full-year results are now estimated at 44 to 46 cents a share compared to
estimates of 53 cents a share.

KVH Industries
(
KVHI |
Quote |
Chart |
News |
PowerRating)
added 2% after the communications company warned of a “break-even to
modest loss” in its third quarter and only “modest profit” for its fourth
quarter. The company cited lower-than-expected military revenues for the
projected short fall.

Before the open tomorrow, look
for the unemployment number. Economists are expecting the unemployment
rate to rise to 6.2% from 6.1% in August. Also, look for earnings from ATI
Technologies
(
ATYT |
Quote |
Chart |
News |
PowerRating), with a .10 estimate.