Monday, October 31, 2005

Morning Look

Morning News of Note:
  • WMT: Wal-Mart Stores-WMT sees October comps up 4.3%
  • GOOG: Google Weighs on Madison Avenue Ad Firms Watch Closely As Search Engine Ponders Move to Traditional Media It's the big question on Madison Avenue: Is Google a friend or foe? Ad companies are increasingly jittery about signs that Google is contemplating expanding its online ad-placement business into traditional media. (Full Story) WSJ
  • LGF: Lions Gate très shriek With its latest, "Saw II," the risk-taking studio is finding itself the object of envy, admiration. EVERYWHERE I went in Hollywood last week, people seemed to be in two distinct camps. They were either depressed — you would be too if none of your movies were working — or they were wildly jealous that they didn't have a movie like "Saw II." The Lions Gate film, which opened No. 1 at the box office with an estimated $30.5 million, the best opening in the company's history, has an eye-catching poster that sells its concept perfectly. (Full Story) LA Times
  • FSH: Fisher Scientific-FSH believe stock represents a compelling value-reit OP@GSCO The firm does not think higher input and fuel costs, while proving to be a challenge, should impair a historically reliable earnings formula. The firm expects 2006 EPS to be $4.05, 15%+. Stable life science market trends are highlighted by strong CRO results.

Market Comments: The market is really strong out of the gate this morning, following on Friday's strength. Energy is leading the way (strong earnings from VLO, OXY), followed by a nice bounce in the homies, as well as retailers (WMT guidance, SKS store sales).

Also, I don't hear a lot of people talking about the fact that the broker index (XBD) is breaking out to new highs. That's got to be another bullish sign for the broader market. Not to mention that the sentiment indicators I follow continue to point to extreme bearishness out there. I expect this to further unwind as the rally builds on itself into year-end.

long FSH, GOOG


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