Chatter about market tops

"Whatever you can do, or dream you can...begin it; boldness has genius, power, and magic in it." - Johann Wolfgang Goethe

Morning News of Note:

• DELL: Dell to Unveil New, Upscale Items Dell Inc. today is expected to announce plans to chase affluent consumer-electronics buyers with a new line of pricey home computers and a dedicated sales and service staff for these products, plus two new high-definition televisions. The moves by the Round Rock, Texas, computer maker comes as retailers Best Buy Co., CompUSA Inc. (owned by Mexico's Slim family) and Tweeter Home Entertainment Group Inc., are adding personal shoppers and custom-installation services to attract well-heeled buyers of home theaters and computer-based entertainment centers. (Full Story) WSJ
• PFE: FDA Clears Use Of Lipitor to Lower Chance of Stroke The Food and Drug Administration approved Pfizer Inc.'s blockbuster drug Lipitor for use in lowering the chance of stroke in patients with Type 2 diabetes, or who are at risk for developing heart disease. Pfizer said the FDA has given the green light for Lipitor, a cholesterol-lowering drug, to be prescribed to lower the stroke risk rate in Type 2 diabetics who don't yet show any evidence of heart disease. (Full Story) WSJ
• FFIV: Networking Stock F5 May Thrive Again INVESTORS ACCUSTOMED TO STELLAR RESULTS from F5 Networks lately appear to have doubts the company can keep it up. The stock of the networking company, which has outperformed that of giant Cisco Systems over the past two years, has lagged in 2005. Investors increasingly fear that rivals Cisco, Juniper Networks and others will cut into F5's growth. (Full Story) BARRONS
• DNA: According to the USPTO website, a patent examiner has issued a non-final rejection of all 36 claims of patent #6,331,415 ("Cabilly"). This is a broad patent on antibody production under which DNA receives royalties on marketed antibodies through 2018. If Cabilly is overturned, DNA would receive antibody production royalties only under the "Boss" patent until 3/06. DNA has 2 months to respond to this '415 ruling. Whether or not the patent is overturned, CIBC expects a lengthy appeals process, during which DNA would continue to receive royalties.

Market Comments: The market opened higher this morning, after a stronger than expected durable goods report (+3.3% vs. +0.7% cons.). Oil is still hovering around $65, and the 10-year yield is at 4.30%.

Yersterday there was a lot of chatter that the strong moves in the consumer staple stocks (food, beverage, etc.) was an early indicator that the market was perceiving a slowdown in the economy, and possbily a market top. I think it's too early to make that call. One reason is that I have a little trouble believing the market has topped with short interest as high as it is now.