Morning Update

"One of the illusions is that the present hour is not the critical, decisive hour. Write it in your heart that every day is the best day of the year." - Ralph Waldo Emerson

Morning News of Note:

• TKLC ALA: Telecom Comes Calling THE BELEAGUERED BUSINESS of building telecommunications networks is finally returning to health. Telecom equipment sales rose 5.2% in the U.S. last year, to $152 billion, after falling 17.4% in the course of the preceding three years, the Telecommunications Industry Association says. Globally, telecom spending will outpace total spending on information technology this year and next, rising 6% to 7% versus an average 5.5% for all IT, estimates Gartner Inc. (Full Story) BARRONS
• AAPL: Apple May Say Earnings Jumped, IPod Shipments Fell in 3rd-Qtr Apple Computer Inc.'s iPod shipments probably dropped in the third quarter from the second, the first decline in more than two years and a sign the surge in demand for the music players may be waning. Apple's profit in the quarter more than quadrupled to $274.2 million, or 31 cents a share, from $61 million, or 8 cents, a year earlier, according to the average estimate of 18 analysts surveyed by Thomson Financial. (Full Story) Bloomberg
• INTC: Intel Corp.-INTC testing using Wi-Fi as substitute for GPS-CNet.com INTC researchers is examining ways of using Wi-Fi or cellular networks to triangulate a person's location, as a substitute for GPS. The wireless method should work better by being able to show not only latitude and longitude, like GPS, but also height. Unlike GPS in cell phones, which requires an additional chip, using wireless does not require any additional hardware.
• International Oil Demand: 1-IEA cuts global oil demand forecast as China slows - Reuters: Reuters reporting that Global oil demand in 2005 is proving slower than expected because of lower-than-forecast demand growth rates in China and the United States, the IEA said on Wednesday. The IEA, revised down its forecast for global oil demand growth this year by 200,000 barrels a day to 1.58 million bpd, 1.9 percent. The reduced demand forecast in the IEA's monthly oil market report comes with benchmark U.S. oil at record highs of more than $61 a barrel.
• UNFI: Utd Nat Foods guides FY06 in-line; announces acquisition of Roots & Fruits Cooperative (31.64 ) Co issues in-line guidance for FY06 (Jul), sees EPS of $1.14-1.19, ex items vs. $1.17 Reuters Estimates consensus; sees FY06 (Jul) revs of $2.25-2.35 bln vs. 2.3 bln consensus. Co also announced today that its wholly-owned subsidiary, Albert's Organics has completed the acquisition of substantially all of the assets of Roots & Fruits Cooperative.

Market Comments: The market has opened flat this am. Harley Davidson reported solid earnings (stock up $2) while Abbott Labs disappointed (-$1.50). AAPL reports after the close today. I expect stocks to remain flat today, after four strong days.

long INTC, UNFI