The Fokker Chronicles

World Markets:
Europe was trading stronger for the good part of the day led by the German DAX advancing 1.34%. Asian markets finished higher following a 0.81% and 0.90% gain in the Japanese Nikkei and Hang Seng respectively. Bonds were trading better by nearly ½ a point, while the equity futures were off their highs of the pre-market session.


Heads-up:
The Federal Open Market Committee(FOMC) is expected to convene its meeting on interest rate policy and the economy at 2:15pmEDT. After the bell earnings reports will paint the tape from the likes of Applied Materials(AMAT:NASD), Computer Sciences(CSC:NYSE) and Maxim Integrated(MXIM:NASD).


Brokerage Chatter:
Merrill Lynch raised its estimates for Goldman Sachs(GS:NYSE), Bear Stearns(BSC:NYSE), and Lehman Bros.(LEH:NYSE). Capital One(COF:NYSE) was upgraded at Wachovia to outperform from market perform. AmeriCredit(ACF:NYSE) was upped at Wachovia to outperform from market perform.

Altera(ALTR:NASD) and Advanced Micro Devices(AMD:NYSE) both met with Deutsche Bank and is making some positive chatter on these names today. Credit Suisse First Boston is negative on Corning(GLW:NYSE) saying the LCD growth in 2004 won't be that great. Merrill said this morning that Analog Devices(ADI:NYSE) may slightly miss its top and bottom line. Wells Fargo(WFC:NYSE) was upgraded at RBC to outperform from sector perform. Target(TGT:NYSE) was reiterated a strong buy at USB Piper Jaffray.

Costco(COST:NASD) was upped at Legg Mason to buy from hold. Prudential said it expects Dell Computer(DELL:NASD) to meet its EPS consensus, but does anticipate the company to report a revenue upside. Merrill also sees a penny of upside to Dell's next quarter.


Financial Headlines:
Stories :
AOL Time Warner(AOL:NYSE) is the topic of several articles this morning following chatter yesterday afternoon that the company is considering dropping the "AOL" from its name.

Bloomberg newswire reports that Schering-Plough(SGP:NYSE) has said its cash flow will not meet capital needs.

Semiconductor Equipment and Materials International (SEMI) reported an 8% increase in silicon wafer shipments. The Chairman of SEMI said "The second consecutive quarter of expansion in silicon consumption clearly indicates we are entering a new growth cycle following the worst downturn in the semiconductor industry".

Johnson & Johnson(JNJ:NYSE) said the U.S. government is probing its drug marketing practices at its Centocor unit.

The NYSE reports that yesterday was the lightest volume day (ex Holidays) of the year.

Earnings:
Deere & Co.(DE:NYSE) beat expectations by 19cents a share, revenues were better as well for the quarter. As per previously announced, the company says 4th quarter sales will be slightly down excluding currency and pricing related issues.
JC Penney(JCP:NYSE) beat by $0.03
OSI Pharma(OSIP:NASD) reported 10cents worse than expectations, however beat on revenues.
Zoran (ZRAN:NASD) lowered its earnings per share guidance for the third and fourth quarters.
Clorox(CLX:NYSE) reported in line with consensus.

Around the world in 80 ticks:
Terrorist group Hamas has claimed responsibility for the West Bank suicide bombing earlier today. Reuters reports that Palestinian leader Abbas told the news agency that he condemned the bombings in central Israel and near the Jewish settlement of Ariel which murdered two people but went on to express his dismay with the Israeli raids in Palestinian areas which he said provoked those terrorist actions.

MSNBC reports that Herb Brooks, who coached the U.S. hockey team to the "Miracle on Ice" victory at the 1980 Lake Placid Olympics, died at the age of 66 years old on Monday following a car accident.



Have a profitable day.

Fokker