Program: Thursday, October 23, 2003

Microsoft's Earnings Rise But The Stock Slides
Profit Taking Gets Pumped Up Amidst Corporate Earnings Concerns
"California Crossroads"-Part 2: Dan Niles of Lehman Brothers
The Prescription Drug Dilemma Continues To Plague Lawmakers Working To Revise Medicare
Commentary: Who Should Pay For The War With Iraq?
Paul Kangas' Stocks In The News
Market Stats

10/23/03: Microsoft's Earnings Rise But The Stock Slides

SUSIE GHARIB: Microsoft reported better than expected sales and earnings after the bell today, but the stock fell sharply in after hours trading. The world`s largest software company said its fiscal first quarter earnings surged 28 percent thanks to strong sales to both businesses and consumers. Excluding charges, Microsoft earned $0.30 a share. That was a $0.01 more than estimates and $0.02 better than a year ago. Revenues rose six percent, to $8.2 billion, at the top of its projected range. Microsoft also raised estimates for the next quarter. It`s now predicting sales to be in the range of $9.7 billion to $9.8 billion and earnings to come in between $0.29 to $0.30. Wall Street was expecting $0.28.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

10/23/03: Profit Taking Gets Pumped Up Amidst Corporate Earnings Concerns

SUSIE GHARIB: On Wall Street, worries about corporate earnings are a key reason that stocks have had trouble making headway recently. Investors are growing nervous that down the road profits may not be as good as expected. Erika Miller reports.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: Better safe than sorry has been the attitude of stock investors lately. Over the past few weeks, they`ve been bailing out of equities, concerned the market may have gotten ahead of itself.

BRETT GALLAGHER, JULIUS BAER INVESTMENT MANAGEMENT: Stocks have really gotten well ahead of fundamentals and I think investors are beginning to take a pause and really reassessing whether or not the prices fit the fundamentals they`re seeing.

MILLER: Gallagher says it`s not surprising that many investors have been tempted to take profits, given the market`s big rally since January. The Dow has risen almost 15 percent, the S&P 500 17 percent and the NASDAQ an impressive 41 percent. Much of the rally has been driven by the belief that corporate profits are improving. But now, some investors fear the recovery won`t be as strong or as fast as they were hoping.

VINCE FARRELL, CHAIRMAN, VICTORY CAPITAL MANAGEMENT: I think investors are worried about earnings, because the rally led us to believe that corporate America was in an up tick, the economy was going to do well and now you`ve got to worry about well, just exactly how well is it going to do.

MILLER: Earnings aren`t the only concern on investors` minds these days. Another worry is that interest rates may start to rise in the next few months. If that happens, bonds may become more attractive relative to stocks. And consumers and businesses could cut back spending, hurting the economic recovery. Some stock market strategists warn it will be a while before stocks can move much higher.

GALLAGHER: I think it`s going to take a couple of quarters of very good earnings growth and very good economic growth overall. We need to see both of those consistently come through in order to justify current price levels before we even think about going to much higher levels.

MILLER: Still, here`s a comforting thought. Most investment strategists expect major market indexes will end the year with a double digit gain. That would mark the first up year for Wall Street since 1999. Erika Miller, NIGHTLY BUSINESS REPORT, New York.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

10/23/03: "California Crossroads"-Part 2: Dan Niles of Lehman Brothers

SUSIE GHARIB: As we continue our series, California Crossroads, we focus tonight on the outlook for the technology sector, a key part of California`s economy. Joining me now is one of the leading technology analysts in the country, Dan Niles. He`s Senior Analyst and global head of semiconductor research at Lehman Brothers (LEH). And, Dan, it`s a real pleasure to have you here on the program with us.

DAN NILES, SENIOR ANALYST, LEHMAN BROTHERS: Thanks, Susie.

GHARIB: All right, as you know, the health of the technology sector plays a key role in the U.S. economy, but, also, it`s a very critical part of the California economy. We`ve been getting a couple of positive earnings reports this quarter from tech companies. Is the worst over?

NILES: Yes, it`s been over for a while, actually. If you go back and look at things, things really bottomed out last summer. And from a that point going forward, you had companies coming out incrementally and saying well, it`s not getting worse, it`s stabilizing. And what you`ve seen over this last earnings season is a lot of companies like Intel (INTC) and others coming out and saying, hey, we`re, you know, starting to grow again. And Intel had the best results in 25 years in a third quarter. So that`s pretty good. So things are definitely behind us and we`re kind of rolling again.

GHARIB: Do you think that this is sustainable?

NILES: Yes, I really do. I think much like the 2001 and 2002 period, it took a long, grinding process to get this thing to finally hit bottom. I think this is a long type of recovery, but I`m not looking for a fast rebound. The way I think about this is it`s a lot like the early `90s for people who remember, where, you know, everybody thought it was going to be a sharp recovery and then it was sort of called a jobless recovery. And it really took until you got to `93, `94, `95 before things really started to get a lot better.

GHARIB: Are you seeing signs of U.S. companies and also international companies stepping up their technology spending?

NILES: Yes, I think they are. I mean what you saw was a couple of years ago, in `01, tech spending down about 10 percent year over year. That, you know, a couple of years ago was down about a percent. Last year, you know, it started to settle down. And what we`re seeing this year is that growth should be about one, two percent. And then next year I think it`ll be more like five, six percent type of growth. So it`s getting there.

GHARIB: So it`s the real thing.

NILES: It`s the real thing.

GHARIB: What technology stocks are you recommending now?

NILES: Right now we`re really focused on the wireless sector. We were focused very heavily on PCs and you`ve seen Intel put up four terrific quarters in a row, including this last one. But what we`re looking at is stocks like Texas Instruments (TXN), where we really think that we`re in the early stages of a big upgrade cycle in cell phones, from 2G to 2 1/2 G and, you know, people are running around with the camera phones. So I think there`s a lot of interesting features there. So that`s what we`re looking at.

GHARIB: Any other stocks?

NILES: Well, Apple Computer (AAPL), I think, is one interesting one for those in the Bay Area, because they`ve introduced this new music service, which is interesting. But the real niceness of it is that they`ve integrated the hardware platform, which is the iPods, with the software, with the music service. And it really gives you a very pleasant experience for using things. Because we have a lot of technology. The problem is we need easy to use technology. And I think that Apple has made that very nice for consumers out there.

GHARIB: Dan, do you own any of these stocks? Or does Lehman Brothers have an investment banking relationship with these two?

NILES: None of those.

GHARIB: OK. I know you don`t follow Microsoft. However, after the bell today, Microsoft did report its fiscal first quarter earnings, which seemed to be good. But the stock fell about a dollar in after hours trade. What`s your take on the Microsoft story?

NILES: Well, I mean, the real problem is when you`re following a company like Intel -- and Intel raised guidance twice during the quarter, pre-announced positively, then beat those numbers and then took numbers up again for the fourth quarter. Our estimates went up a tremendous amount. You know, Microsoft coming out beating revenues by $100 million, a $0.01 over EPS, not really changing forward guidance and unearned revenues is down $700 million. People are like well, that`s not all that great.

GHARIB: So you mean being positive is not good enough for investors?

NILES: No, I mean, well, especially given where a lot of stocks have run from. So they`ve bounced pretty hard off the bottom. And Microsoft hasn`t done all that well, but they`re not necessarily being as bullish as some of the other companies out there. And so it`s good news, it`s just for the next 24 hours it will be perceived negatively.

GHARIB: What about IBM? You do cover IBM. And it was the same kind of story. They came out with, you know, strong earnings. But the CEO said, you know, we`re not ready for a rebound just yet. What`s your view on the outlook for IBM?

NILES: IBM, I think, is pretty good. And we have an investment banking relationship with them. But I think that stock should have gone down the next day. I mean they missed the revenues by about $100 million. But the nice thing was they don`t really benefit from the consumer. All their revenues really comes from corporate. And what they said is we`re seeing a pickup on the corporate side and services bookings are huge. And so I think you`ll see them really pick up more as we get into next year.

GHARIB: We are doing this series about California, so I just want to get a comment from you. If your outlook for the technology sector is so positive and going into the next year, what do you think this all means for California and for the Silicon Valley particular?

NILES: Well, unfortunately, I think Gray Davis got caught in the middle of an economic cycle, which he can`t really help. I think it`ll be really good. So it will make Schwarzenegger look pretty smart, even though he doesn`t have a lot of control over that either, necessarily.

GHARIB: Well, I`m sure he`s going to be happy to know that the tech sector is recovering. Thank you so much, Dan, for coming on the program. We appreciate it.

NILES: You`re very welcome, Susie. Thank you.

GHARIB: We`ve been speaking with Dan Niles of Lehman Brothers.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

10/23/03: The Prescription Drug Dilemma Continues To Plague Lawmakers Working To Revise Medicare

SUSIE GHARIB: On the sick list tonight, a plan to add a prescription drug benefit to Medicare. On Capitol Hill, Senate Democrats and Republicans are wrangling over changes in the healthcare system, including whether to encourage seniors to enter private plans rather than the traditional Medicare plan. And that`s not all that`s at stake, as Stephanie Woods reports.

STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Democrats say there`s no deal on the plan to add a prescription drug benefit to Medicare. Today they diagnosed problems with the Republican plan, including companies dumping healthcare coverage for their retirees. Forty Senate Democrats and one Republican sent a letter to the President prescribing their cure.

SEN. TOM DASCHLE (D-SD), MINORITY LEADER: The President can solve this problem. There is absolutely no reason why, if this is important to him, he can`t insist, with our House colleagues, that they acknowledge the importance of these issues and help us resolve them successfully.

WOODS: Some 12 million seniors now get drug coverage from their employer retirement benefits. Democrats say it`s critical that employers be given incentives to keep the coverage.

SEN. JON CORZINE (D), NEW JERSEY: There is nothing that we hear being developed to try to encourage employers to stay with their prescription drug benefit for seniors.

WOODS: Analysts figure employers will save $500 per retiree per year under the proposed Medicare drug benefit. But large employers say they won`t drop coverage, instead use the savings to fill in gaps in the government plan.

EDWARD KALETA, CHAIRMAN, EMPLOYER`S COALITION ON MEDICARE: By the government offering a Medicare Part D for drugs, employers will be able to supplement or provide additional coverage on top of the government benefit and thereby decreasing our costs over the long-term and allowing us the flexibility to stay in the game.

WOODS: Analysts expect Congress will give employers $70 billion or more in subsidies and tax breaks to keep them from cutting off retiree coverage. Conservatives fear the costs to taxpayers will rise from there.

ROBERT MOFFIT, CENTER FOR HEALTH POLICY/HERITAGE FOUNDATION: The inadequacies of the benefit itself, the fact that it`s a weird benefit with the donut holes and the gaps in coverage, are going to mean that it`s going to be politically unpopular. Members of Congress are going to try to correct that by making it more and more generous. At the same time then, the taxpayers are going to get hit with larger and larger bills.

WOODS: Republicans say Democrats` complaints are premature. Key lawmakers are still hammering out a deal. They hope to have the framework for an agreement in the next few days. Stephanie Woods, NIGHTLY BUSINESS REPORT, Washington.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

10/23/03: Commentary: Who Should Pay For The War With Iraq?

SUSIE GHARIB: Tonight`s commentator says sometimes it`s just better to bite the bullet and get things over with. Here`s Alan Sloan, Wall Street Editor of "Newsweek" magazine.

ALLAN SLOAN, COMMENTARY: You can argue all you want about whether we should have invaded Iraq and what we should do now that we`re there. But one thing sure seems obvious to me: we American taxpayers ought to foot the bill for Iraq rather than asking the rest of the world to lend us the money. It was one thing to borrow heavily for the Revolutionary War, when the federal government didn`t have any money; or to fight the two world wars, which were expensive beyond belief. But our country is amazingly rich now and the $87 billion extra that President Bush is asking for Iraq and Afghanistan is less than one percent of our national economy. He wants us to borrow all that money and stick our children and grandchildren with the bill. That`s just wrong. Look, we`ve cut taxes by $3 trillion over the past three years. It doesn`t take much of a reversal to raise $87 billion. Which way do you think we`re more secure -- begging foreigners who finance our budget deficit to lend us money for the war or sucking up our guts, sacrificing some tax cuts and paying for it ourselves? Cut back, say, the dividend tax break, or impose a small income tax surcharge for a year or two, and we can easily afford Iraq without derailing our economy. So let`s face up to the bill for the war and just pay it and stop pretending that hocking our kids` future doesn`t matter. This isn`t about politics, it`s about being responsible and remembering that paying cash is lots cheaper in the long run than borrowing. I`m Allan Sloan.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

10/23/03: "Paul Kangas' Stocks In The News"

PAUL KANGAS: Stocks on Wall Street had a mixed opening. The blue chips edged higher on solid earnings from Bristol-Myers (BMY) and Lilly (LLY), as well as a drop of 4,000 in the latest weekly jobless benefit claims. The tech sector, however, headed lower on disappointing earnings from Computer Associates (CA) and Sony. For most of the morning, stocks traded in a narrow and mostly lower range, as investors sifted through the oncoming batch of earnings reports. At midday, the Dow was down 11 points and the NASDAQ Composite still off 15 points. Afternoon brought little change, except for a late firming in the blue chips on optimism that Microsoft would report better than expected earnings. So the Dow Jones Industrial average closed up 14.89 points, putting it at 9,613.13. The NASDAQ Composite fell about 12 1/2 points, to 1,885.51. The Standard & Poor`s 500 Index rose 3.41 points, ending at 1,033.77. Over in the bond market, the 10-year note fell 16/32, to 99 15/32, lifting the yield to 4.32 percent.

Once again topping the active list today on a very active 55 million shares, Lucent Technologies (LU) edging up another $0.06. It was up $0.33 yesterday after reporting better than expected fourth quarter earnings of $0.02 a share.

AT&T Wireless (AWE) down $0.88. That`s nearly an 11 percent drop. The company did report third quarter earnings of a $0.05, down -- that`s better than the $0.76 loss a year before. And revenues were up eight percent. But the Legg Mason Brokerage still downgraded the stock from "buy" to "hold."

Sprint PCS Group (PCS) down $0.91. That`s a 17 percent drop. A third quarter loss reported of $0.07 a share, much bigger than last year`s $0.01 loss. The company sees a full year loss of $0.43 to $0.48 a share.

NorTel Networks (NT) was down $0.21.

And then Pfizer (PFE), fifth in volume, gained $0.39.

A $0.21 drop in Time Warner (TWX).

First Data (FDC) was up $0.70. Just as the market was closing, the Department of Justice filed to block First Data`s acquisition of Concord EFS (CE) on competition concerns. And First Data says those concerns are ill advised and inaccurate and it will fight vigorously to get that acquisition approved.

Texas Instruments (TXN) was up $0.30.

And Merck (MRK), tenth in volume, down $0.22 after disappointing earnings out yesterday.

Computer Associates (CA) down $2.13. Second quarter operating earnings came in at $0.14, way up from $0.04. But that was just inline with estimates and the company says its third quarter growth will be lower than expected. And obviously that`s what hurt the stock.

Sony Corp. (SNE), as we talked on earlier, down $2.66. Second quarter earnings fell 25 percent over last year. The company cited weakness in its video game and movie businesses and it sees 2004 earnings about $0.46 below -- 46 percent below this year`s earnings.

Bristol-Myers Squibb (BMY) managed to gain $0.85. Third quarter earnings nicely higher, $0.46, up from $0.17. Last year, that was a $0.05 above the Street estimate. But the company says its fourth quarter earnings will be lower than its third quarter earnings. And that kind of put the lid on the stock`s gain.

Eli Lilly (LLY) up $4.32. Third quarter earnings $0.66, up from $0.63 last year. That was about in line with estimates. Sales were up 13 percent and A.G. Edwards upgraded the stock from "hold" to a "buy."

Colgate-Palmolive (CL) down $4.57 even though its third quarter earnings were higher, $0.63 versus $0.57 last year, a six percent gain in sales. But Standard & Poor`s tied the weakness in the stock to volume declines in North America and the company also said a large part of its earnings gain was due to favorable currency translations. And that`s not really straight business, is it?

Dow Chemical (DOW) up $1.37. It had a great third quarter, earnings of $0.36 when the Street was only expecting $0.25. And this is way up from $0.14 a year ago.

And Pulte Homes (PHM) up $6.85. Third quarter earnings came in at $2.56, way up from $1.83 the year before. Revenues up a whopping 29 percent. The company increased its 2003 earnings guidance to about $9.60 a share and 2004 guidance to as much as $12 a share.

Well, obviously, that good news helped the whole home building sector.

Centex (CTX), KB Home (KBH), Lennar (LEN) and Ryland (RYL) all good gainers. And, incidentally, Centex and Ryland hit 52 week highs today.

On the down side, Action Performance (ATN) tumbling $6.07. This company makes those die cast collectible car models and the company warned its fourth quarter earnings would be less than 50 percent of the level of earnings a year ago.

And Celestica (CLS) down $2.73. Third quarter earnings -- I should say a loss of third quarter of $0.04 a share. That`s versus earnings of $0.20 the year before and revenues actually fell 17 percent.

The NASDAQ`s most active issue, Microsoft (MSFT), up $0.02 on the regular day. But after the close, despite those better than expected earnings, as Susie mentioned, the stock fell to around $28.

Intel (INTC) was down $0.30.

KLA-Tencor (KLAC) tumbling $4.56. First quarter earnings came in at $0.18, in line with estimates, but the company says second quarter earnings and revenues will miss its targets.

Amgen (AMGN) was down $0.56.

Cisco Systems (CSCO), a $0.47 drop there, fifth in dollar volume.

Electronic Arts (ERTS) down $3.93. The stock undermined, no doubt, by Sony`s bleak outlook for video game sales.

Yahoo! (YHOO) down $1.37.

And then a gainer, Amazon.com (AMZN) up $.29.

Mercury Interactive (MERQ) was down $5.22. The company reported a third quarter loss of $0.08 versus earnings of $0.15 in the same period the year prior.

And Applied Materials (AMAT) down $0.68, tenth in Nasdaq volume.

TheraSense (THER) was up $4.30. Third quarter earnings of $0.06 versus a loss of $0.23 last year. The Street was looking for just a break even quarter, so much better than expected.

And then CV Therapeutics (CVTX) up $4.23. An FDA advisory panel is finally going to review the company`s angina treatment on December 9.

And Macromedia (MACR) down $9.55. Ouch, that`s a big loss. The company cut this year`s revenue growth target from 10 to 20 percent to a growth factor of only five to 10 percent.

And those are the stocks in the news tonight.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

10/23/03: Market Stats

			     
                                      NET    PERCENT
                         CLOSE     CHANGE     CHANGE
DOW CLOSE              9613.13     +14.89       + .2
HIGH                                         9622.16
LOW                                          9551.73

NASDAQ COMP.           1885.51     -12.56        -.7
HIGH                                         1893.20
LOW                                          1874.11

VOLUME                                       1,595.2
PREVIOUS                                     1,624.9
UP VOLUME                                      803.8
DOWN VOLUME                                    780.7

DOW TRANSPORTS         2828.52     +10.51       + .4
DOW UTILITIES           252.63       -.34       - .1
CLOSING TICK                                    +187

S&P 500                1033.77      +3.41       + .3
S&P 100                 514.88      +1.48       + .3
MIDCAP 400              532.97       +.05       + .0
REUTERS/CRB             248.69      +3.36      + 1.4

NYSE COMPOSITE         5864.33      +6.20       + .1
VALUE LINE              332.01      -1.12      -0.34
RUSSELL 2000            510.49      -2.66      -0.52
WILSHIRE 5000          10029.2     +21.88       0.22

U.S. TREASURIES
5-YEAR NOTE 3.125%
Oct. 15,2008          99 15/32      -8/32       3.24

10-YEAR NOTE 4.25%
Aug. 15,2013          99 15/32     -16/32       4.32

30-YEAR NOTE 5.375%
Feb. 15, 2031        102 17/32     -29/32       5.20

LEHMAN BROS.
LONG BOND INDEX        1710.16      -7.39 


DOW CLOSE              9613.13     +14.89       + .2
ADVANCES                                        1550
DECLINES                                        1684
NEW HIGHS                                        115
NEW LOWS                                          11

                                      NET    PERCENT
NYSE MOST ACTIVES    4PM CLOSE     CHANGE     CHANGE
LU     Lucent Tech        2.83       +.06       +2.2
AWE    AT&T Wireless      7.37       -.88      -10.7
PCS    Sprint PCS Group   4.41       -.91      -17.1
NT     Nortel Networks    4.44       -.21       -4.5
PFE    Pfizer            31.01       +.39       +1.3
TWX    Time Warner       14.85       -.21       -1.4
FDC    First Data        36.60       +.70       +2.0
CE     Concord EFS       11.00      -2.58      -19.0
TXN    Texas Instrument  27.31       +.30       +1.1
MRK    Merck             45.50       -.22        -.5

NASDAQ CLOSE           1885.51    - 12.56       - .7
VOLUME                                       1,937.3
PREVIOUS                                     1,720.4
ADVANCES                                        1327
DECLINES                                        1823

NASDAQ ACTIVES
MSFT   Microsoft         28.91       +.02        +.1
INTC   Intel             31.22       -.30       -1.0
KLAC   KLA Tencor        53.49      -4.56       -7.9
AMGN   Amgen             59.74       -.56        -.9
CSCO   Cisco Systems     20.16       -.47       -2.3
ERTS   Electronic Arts   98.01      -3.93       -3.9
YHOO   Yahoo!            40.40      -1.37       -3.3
AMZN   Amazon.com        54.32       +.29        +.5
MERQ   Mercury Interact  43.84      -5.22      -10.6
AMAT   Applied Matl      20.65       -.68       -3.2

AMEX CLOSE             1018.35      + .06       + .0

INDEX SHARES
DIA    DIAMONDS TRUST    95.95       -.26        -.3
QQQ    NASDAQ 100        34.17       -.40       -1.2
SPY    S&P DEP.RECEIPTS 103.35       -.19        -.2

STOCKS IN THE NEWS
CA     Computer Assoc    23.02      -2.13       -8.5
SNE    Sony              34.49      -2.66       -7.2
BMY    Bristol Myers Sq  25.10       +.85       +3.5
LLY    Eli Lilly         65.10      +4.32       +7.1
CL     Colgate Palmolive 53.19      -4.57       -7.9
DOW    Dow Chemical Co   36.22      +1.37       +3.9
PHM    Pulte Homes       84.86      +6.85       +8.8
CTX    Centex            94.00      +3.10       +3.4
KBH    KB Home           67.44      +1.28       +1.9
LEN    Lennar            86.70      +1.67       +2.0
RYL    Ryland Group      86.64      +2.24       +2.7
ATN    Action Perform    20.25      -6.07      -23.1
CLS    Celestica         13.75      -2.73      -16.6
MERQ   Mercury Interact  43.84      -5.22      -10.6
THER   TheraSense        16.82      +4.30      +34.4
CVTX   CV Therapeutics   22.45      +4.23      +23.2
MACR     Macromedia         17.58      -9.55      -35.2