Market Pause?

"He that is good for making excuses, is seldom good for anything else." - Benjamin Franklin

Morning News of Note:

• Steel: Steel Prices Could Rise Further As Flooding Stalls Key Materials The price of steel used to make cars and industrial equipment is expected to rise by as much as 20% in coming months because New Orleans flooding has limited the supply and distribution of raw materials such as liquid hydrogen and scrap steel. The increase would be in addition to roughly 20% price increases by steelmakers including Pittsburgh-based U.S. Steel Corp. and Nucor Corp., of Charlotte, N.C., that became effective on Sept. 1 for shipments of key products like hot-rolled coil. (Full Story) WSJ
• TIVO: TiVo Slashes Recorder Price In Half, to $50 Latest Cut Is Made to Fend Off Competition From Cable Giants; Comparing the Monthly Costs Faced with growing competition from powerful rivals with cheaper products, TiVo Inc. sharply cut the prices on its digital video recorders. The Alviso, Calif., company yesterday dropped to $50 from $100, after rebates, the price of its entry-level digital video recorder. TiVo is virtually synonymous with DVRs, as they are also called, having pioneered the devices that record television shows onto hard disks, allowing consumers to skip commercials and halt live broadcasts. (Full Story) WSJ
• PMCS: PMC-Sierra Eyes a New Era PMC-SIERRA IS TO SEMICONDUCTORS what Donna Karan is to fashion: It stands for sophisticated design at high, high prices. And just as fashionistas might be horrified if Karan branched out into cheap baubles, investors have run for the exits as PMC moves to sell cheaper chips in new markets. PMC's shares have fallen 25% this year and its valuation is a hair above the industry's average even though its growth rates are far higher than those of its peers. (Full Story) BARRONS
• Interest Rates: U.S. Lawmakers Urge Fed to Hold Interest Rates Steady Sept. 20 U.S. lawmakers from both parties are urging the Federal Reserve to forgo raising interest rates at its Sept. 20 meeting to help consumers and businesses recover from the destruction of Hurricane Katrina. ``The economy's doing well,'' said Senator Orrin Hatch, a Utah Republican. ``There's no reason to raise interest rates at this point.'' (Full Story) Bloomberg
• Bulls/Bears: Bulls 52.1% vs 51.1%, Bears 28.1% vs 27.3%, Correction 19.8% vs 21.6%

Market Comments: The market opens slightly lower this morning. ALTR gave weak guidance last night, and that has the semis trading down. But INTC gives its mid-quarter update tomorrow, and this should be more of a market moving event.

The healthcare breakouts I mentioned yesterday continue to rise. That sector is one of the early standouts so far today. But it's still early, so I would not be surprised to see further late day short covering into the close.

long INTC