Wednesday, October 26, 2005

Poised for more gains

Morning News of Note:
  • MDT STJ GDT: U.S. Seeks Data From Medtronic, St. Jude, Guidant Medtronic Inc., St. Jude Medical Inc. and Guidant Corp., leading makers of medical devices, said they received Justice Department subpoenas inquiring into sales practices in the heart-defibrillator and pacemaker industry. St. Jude, of St. Paul, Minn., and Guidant, of Indianapolis, both said that a broad subpoena was issued by the U.S. Attorney's Office in Boston, and that it deals with defibrillators, pacemakers, "lead" wires and related products. (Full Story) WSJ
  • WAG CVS: Retail/Drug-anticipate posting solid Oct sales particularly front end-Attract@GSCO In anticipation of a 20% intermediate-term returns, the firm advises buying CVS/OP and WAG/OP. Despite a negative Halloween calendar shift, the firm estimates an average overall gain of 5% with front end up 4%.
  • MCD: Read It and Weep? Big Mac Wrapper To Show Fat, Calories Would you care for some reading material with your fries? McDonald's Corp. said it will start posting nutritional data on some product packages next year, responding to pressure from consumer groups and working to alter the popular perception that the food served at the world's largest restaurant chain is unhealthy. Starting in February in Turin, Italy, McDonald's will print the calories, protein, fat, carbohydrates and sodium contained in some of its most popular menu items on wrappers and boxes. (Full Story) WSJ
  • Short Interest: Nasdaq Oct short interest up 2.3% to 5,944,351,614, record high; SIR 3.4 vs 4 in Sept -- WSJ

Market Comments: The market did a nice job yesterday of limiting its losses into the close. The late day rally resulted in just a slight pullback for the day. Not bad considering how big Monday's rally was, and how many times we have seen the market give back the bulk of its gains. Volume was below average levels, just what you want to see on a pullback.

The market is up again this morning, with the SPX now sitting right at its 200-day. In terms of earnings, AMZN is getting whacked on its in-line guidance. ISRG is the biggest standout on the upside, with FFIV coming in 2nd. There were also nice quarters reported by COP, ADP, and MNST to name a few.

long ADP, MDT, MNST, WAG; short AMZN


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