Quote of the Day

"Keep a definite goal of achievement constantly in view. Realize that work well and worthily done makes life truly worth living." - Grenville Kleiser

Morning News of Note:

• NOK INTC: Nokia, Intel Plan to Collaborate On Wireless Technology WiMAX Alliance Will Concentrate On Mobile Applications; No Money to Change Hands Nokia Corp. and Intel Corp. said they will collaborate on the development of WiMAX, a wireless technology that is touted as an alternative way to deliver both stationary and mobile Internet access at high speeds. The alliance between Nokia, the world's biggest cellphone maker, and Intel, the No. 1 maker of computer chips, is aimed at refining WiMAX for mobile applications, a field where the technology faces stiff competition from mobile data networks based on cellular technology. The companies said they will jointly develop WiMAX technology for laptop computers, mobile devices and network base-stations. (Full Story) WSJ
• INTC: Intel Raises Its 2Q Revenue Forecast Buoyed by stronger-than-expected demand for the chips in notebook computers, Intel Corp. boosted its second-quarter revenue forecast in the latest sign that the semiconductor industry is gaining strength. Intel, the world's largest semiconductor company, said Thursday it expects sales to be between $9.1 billion and $9.3 billion for the period ending July 2. That's an improvement from its April prediction of between $8.6 billion and $9.2 billion. (Full Story) Washington Post
• Trade Deficit: U.S. Trade Deficit Probably Widened in April, Bloomberg Survey The U.S. trade deficit probably widened in April, led by rising imports of oil and consumer goods, economists said before a government report today. The shortfall in trade of goods and services grew to $58 billion, according to the median estimate of 68 economists surveyed by Bloomberg News, from the previous month's $55 billion. The deficit reached a record $60.6 billion in February. (Full Story) Bloomberg
• C: Citigroup Inc., the world's biggest financial-services company, agreed to pay $2 billion to settle investor claims that the firm helped Enron Corp. inflate profit and hide debt, lawyers for Enron shareholders said. The accord, the largest Enron-related settlement so far, resolves shareholders' claims that New York-based Citigroup helped Enron executives manipulate the energy trader's finances to hide billions in debt in off-the-books partnerships, investors' lawyers said today in a release.
• MSFT: Microsoft planning music subscription service - CNET (25.51 ) -Update- According to CNET, citing sources, Microsoft is planning to bolster its own online song store with a new subscription service later this year. The software giant launched its song download store, similar to Apple's iTunes store, last Sept. The Microsoft MSN-branded service did not include a subscription plan at that time, focusing instead on selling individual songs online and through Windows Media Player. But Microsoft is now working with record labels and copyright holders in preparation for launching its subscription-based component. (Briefing.com note: Look for potential weakness in music subscription plays including RNWK and NAPS)

Market Comments: The market opened fairly flat this morning. Intel gave an upbeat mid-quarter update last night, but it looks like a 'sell on the news' reaction. The stock is down 2% so far, and the semi index (SOX) is also down slightly. Intel has had a great run over the last few weeks, so I am not suprised by today's action. I still like the stock.