IIC's Winners Watchlists

[IIC]

The U.S. Department of Defense announced the following contracts Monday:

General Dynamics Corp. (GD) received a $14.7 million delivery order as part of a $42.9 million firm-fixed-price contract for 1,035 M2 machine guns. The work should be completed by March 20, 2007.

Northrup Grumman Corp. (NOC) received a $4.03 million increment as part of a $169.7 million cost-plus-award-fee contract for advisory and assistance services. The work will be completed by July 16, 2005.

Titan Corp. (TTN) was awarded a not-to-exceed $9.03 million modification to a previously awarded cost-plus-fixed-fee contract to exercise an option for systems engineering services in support of the Maritime Surveillance Aircraft Team for the Navy and the government of the Netherlands. The work will be completed in September 2005.

[IIC]

Nikkei down 1.4 pct by mid-morning led by techs
Mon Jul 19, 2004 09:20 PM ET
(
TOKYO, July 20 - Japanese stocks were down more than one percent by mid-morning on Tuesday as investors dumped chip giants such as Advantest Corp. (6857.T: Quote, Profile, Research) amid continuing concern over the sector's business outlook.

Figures on Monday on North American orders for equipment used to produce microchips showed weakening demand in June, jolting investor confidence, which was already fragile following Merrill Lynch's downgrade of the chip sector earlier this month.

A slew of earnings and business outlooks from U.S. technology giants later in the day were making investors wary and prompting some to unload domestic chip-related stocks, analysts said.

The benchmark Nikkei average dropped 1.38 percent to 11,278.40 by 0044 GMT while the broader TOPIX index lost 0.82 percent to 1,141.68.

[IIC]

Southwest Securities Starts Navarre At Strong Buy >NAVR

[IIC]

TOP STORIES

MICROSOFT TO PAY SPECIAL DIVIDEND, BUY $30B IN STOCK


Microsoft is making a $75 billion move to share its huge cash horde with shareholders. World's largest software company says it will repurchase $30 billion of its stock over four years, issue a one-time dividend of $32 billion, or $3 per share and will double its annual dividend to 32 cents per share. Shares up 4% late.

MOTOROLA SWINGS TO 2Q LOSS

Reports loss of $203 million, or 9c a share, compared with year-ago earnings of $119 million, due to charges related to spinoff of its semiconductor unit. Sales rise 41% to $8.7 billion. Also announces resignation of executive Tom Lynch.

GREENSPAN SEES RATES RISING AT GRADUAL CLIP

Fed chairman tells Congress central bank aims to continue raising rates at gradual pace over next 18 months, but is ready to "respond promptly and flexibly" if inflation proves to be higher than policymakers expect. See full coverage.

SCHWAB OUSTS POTTRUCK AS CEO

In surprise move, board dismisses CEO David Pottruck, a 20-year company veteran, handing reins back to founder and Chairman Charles Schwab. Move comes as broker tries to right itself amid a drop-off in revenue trades and a 10% decline in 2Q earnings. Shares rise 7% on hope of turnaround.

FORD 2Q NET TRIPLES, BUT SHARES FALL

Lifted by consumer-lending business, auto maker says 2Q net tripled to $1.2 billion and raises full-year outlook. But Ford loses money in core car-making business and signals it will overhaul money-losing Jaguar unit. Shares drop 3%.

TEXAS INSTRUMENTS 2Q MATCHES VIEWS

Reports 2Q earnings of $441 million, or 25c a share, meeting Wall Street estimates, as revenue rises 39% to $3.24 billion. Sees 3Q earnings of 26c to 29c a share on revenue of $3.2 billion to $3.44 billion.

SUN MICRO SWINGS TO 4Q PROFIT

Computer maker earns $795 million, or 24c a share, compared with a loss of $1.04 billion, or 32c a share, boosted by higher revenue and a hefty settlement gain.

GRASSO SUES NYSE, REED FOR $50M

Former NYSE Chairman Dick Grasso files lawsuit against the exchange and current Chairman John Reed seeking at least $50 million in lost wages and benefits and potentially more claiming breach of contract and defamation.

US HOUSE BACKS STOCK-OPTION BILL

The U.S. House of Representatives votes 312 to 111 for a bill that would defer new rules on stock-option accounting, siding with technology companies over independent accounting rulemakers.

ALTRIA 2Q NET BOOSTED BY WEAK DOLLAR

Parent of Philip Morris says net income rises 7.8%, boosted by weaker dollar, lower tax rate and U.S. market share gains for Marlboro. Also backs estimates for net income of $4.50 to $4.60 a share for full year 2004. Shares edge higher.

MELLON 2Q NET MISSES ANALYST VIEWS

Earns $176 million, or 42c a share, up slightly from last year's comparable period and 2c shy of expectations. Results include $24 million pre-tax charge for vacating leases and moving into new European headquarters. Shares up 3%.

CONTINENTAL SEES STEADY 3Q BOOKINGS

Shares rise 4% as airline says 3Q passenger bookings are on par with last year, but says profits per passenger will come under pressure. Reports loss of $17 million, or 26c a share, but excluding charges, EPS of 3c tops estimates.

AMERITRADE UP ON STRONG 3Q

Shares soar 12% after 3Q profit rises 24% and matches Wall Street expectations. CEO Joe Moglia, whose contract runs out early next year, says he is "50-50" on whether to remain at online-brokerage firm.

JP MORGAN BIDS FOR PRUDENTIAL PLC'S EGG

Among several companies that have formally bid for Internet banking arm of Britain's Prudential, reports The Wall Street Journal Europe, joining U.S. credit card companies Capital One and MBNA, along with other financial groups.

BOSTON SCIENTIFIC STILL UNDER PRESSURE

Shares drop another 4% on Taxus stent recall. Physicians also complain of problems removing the delivery mechanism after stent is replaced in artery, increasing risk of tears.

YUKOS HIT AS RUSSIA SEEKS OIL UNIT SALE

The Russian government says it will seize control and sell a key unit of oil company Yukos to recoup a $3.4 billion tax debt, dashing hopes for an out-of-court settlement. Court to consider Yukos' appeal on asset seizures.

EMC UP ON STRONG 2Q REVENUE, NET

Shares rise 3% as EMC reports rising revenue and profits in 2Q, bolstered by blistering sales of its midrange hardware devices, but the data-storage vendor says that corporate customers are tenaciously negotiating technology deals.

CORNING SHARES JUMP ON 2Q RESULTS

Shares of Corning rise 11% after the company late yesterday reported better-than-expected 2Q results based on strength in its telecommunications and display technology segments.

WELLS FARGO, US BANCORP 2Q PROFITS RISE

Wells Fargo's net climbs 12%, with revenue gaining 7%, but earnings fall short of estimates. U.S. Bancorp's earnings rise 13% to $1.04 billion, or 54c a share, to edge views, despite 7.7% revenue drop. Wells Fargo down 1%; U.S. Bancorp flat.

JUNE US HOUSING STARTS TUMBLE

Amid higher mortgage rates, housing starts decrease 8.5% to a seasonally adjusted 1.802 million annual rate, well short of the 1.2% rise predicted by economists. Building permits decrease by 8.2% to a 1.924 million annual rate.




LATE TRADING
Microsoft Up On Dividend News, Buyback

Shares rise 4% in late trading after the tech giant says it will issue a regular and one-time dividend of $3 a share and buy back stock up to $30 billion in stock.

[IIC]

The following is a special summary of Federal Reserve Chairman Alan Greenspan's semi-annual monetary-policy report Tuesday, July 20, before the Senate Banking Committee in Washington, D.C. For full coverage of the events please search the code G/FED.

=Fed Sees Rising US Inflation As Econ Grows Rapidly


The Federal Reserve on Tuesday raised its forecasts for U.S. inflation this year, and said the U.S. economy would likely continue to expand at a brisk pace this year and next. The Fed predicted its favored measure of inflation - the price index for personal consumption, excluding food and energy - would range between 1.75% and 2.0% for 2004.

Fed Chmn Greenspan: 'Prepared For Unexpected' But Sees Tame Prices


Federal Reserve Chairman Alan Greenspan said Tuesday the U.S. central bank aims to continue raising interest rates at a gradual clip over the next 18 months or so, but is ready to "respond promptly and flexibly" if inflation proves to be higher than policymakers now expect.

Greenspan Doesn't See US Labor Market 'Stalling'


Federal Reserve Chairman Alan Greenspan said Tuesday that the recent slowdown in the pace of U.S. job creation doesn't herald a "stalling" of the labor market and predicted a "fairly significant" rate of job creation in coming months.

Greenspan Says Job 'Outsourcing' Will Rise, US To Benefit


Greenspan said he expects the number of U.S. jobs "outsourced" to low-wage countries to climb in the next few years, but that will not be a "bad" thing for the U.S. economy.

Greenspan: Econ Growth In China Is Slowing, Not Sinking


The Chinese government appears to be accomplishing the tricky task of slowing its economy without triggering a recession, U.S. Federal Reserve Chairman Alan Greenspan said Tuesday.

Greenspan: Consumer-Spending Slowdown To Be 'Short-Lived'


In testimony, Greenspan cites softness (in consumer spending) which should prove short-lived. He doesn't see the retail sales deline, nor the implied consumption decline as a new trend, just a shock brought about by "transitory factors such as the surge in energy prices."

Treasurys Sell Off On Greenspan's Bullish Econ Outlook


Treasurys are selling off as market digests Greenspan's prepared remarks. 10-yr now down 9/32 to yield 3.40%. 5-yr is leading the sell-off, its yield rising to 3.63% from 3.58%.

Dollar Hits Day's Highs Amid Upbeat Greenspan Comments


The dollar gained ground Tuesday afternoon following upbeat testimony from Federal Reserve Chairman Alan Greenspan, reaching highs of the days versus the euro and Swiss franc.

Greenspan Won't Shed Light On Meaning Of 'Measured' Pace


Greenspan on Tuesday declined an opportunity to specify exactly what the central bank means when it says it plans to raise rates at a "measured" pace.

=Fed Funds Futures Now Leaning Toward Aug, Sep Rate Hikes


Fed funds futures sold off Tuesday to factor in an almost 100% chance of a 25 basis basis point rate increase at the Aug. 10 Federal Open Market meeting and about an 85% chance of a 25 basis point rise at the Sept. 21 meeting.

Other Headlines:

Greenspan: Higher Rates Won't Hurt Financial Mkts, Households
Greenspan: Rapid Rate Hikes Would Entail More Economic Risk
Greenspan Faults SEC Proposal On Hedge Funds

[IIC]

Today's MoMo

SEB ALDN OSTK STLD EPEX NAVR ATI BGY SMXC HMX CFS

[IIC]

Naz New Highs closed up on at least 2x ADV...

EPAX EPEX ESLT HBAN JCTCF PNRG SAFC ZION

[IIC]

[code:1:b1d36d1355]Dow Jones U.S. Total Market Indexes Jul. 20, 2004

.INDEX CLOSE NET CHG %CHG
DJ US Total Market 262.55 +2.04 +0.78
DJ US Large-Cap 239.15 +1.63 +0.69
DJ US Mid-Cap 321.40 +2.86 +0.90
DJ US Small-Cap 364.00 +5.28 +1.47


Final Market Diaries: NYSE, Nasdaq, Amex 4:00 p.m. ET

. TUE MON WK AGO
NYSE Market Diary
Issues traded 3,420 3,416 3,423
Advances 1,914 1,741 1,704
Declines 1,342 1,535 1,559
Unchanged 164 140 160
New highs 107 103 60
New lows 36 56 28
zAdv vol (000) 974,340 571,454 645,643
zDecl vol (000) 443,101 725,080 531,184
zTotal vol (000) 1,444,915 1,319,539 1,198,039
Closing tick1 +558 +359 +562
Closing Arms2 (trin) 0.65 1.44 0.90
zBlock trades 23,678 20,870 19,660

Nasdaq Market Diary
Issues traded 3,250 3,263 3,229
Advances 2,095 1,284 1,478
Declines 991 1,840 1,551
Unchanged 164 139 200
New highs 30 28 25
New lows 105 173 77
Adv vol (000) 1,289,198 785,379 462,564
Decl vol (000) 232,487 932,390 938,216
Total vol (000) 1,547,132 1,756,388 1,451,481
Block trades n.a. 11,888 11,010

Amex Market Diary
Issues traded 956 975 962
Advances 451 338 451
Declines 407 530 427
Unchanged 98 107 84
New highs 14 17 13
New lows 28 29 23
zAdv vol (000) 30,500 21,683 16,139
zDecl vol (000) 15,515 29,632 22,234
zTotal vol (000) 48,766 52,742 41,472
Comp vol (000) 287,468 270,902 208,714
zBlock trades n.a. 906 622
z-NYSE or Amex only
c-correction, r-revised, n.a.-not available
[/code:1:b1d36d1355]

[IIC]

The U.S. Department of Defense announced the following contracts Tuesday:

Perini Corp. (PCR) received a $52.1 million delivery order as part of a firm-fixed-price contract for design and construction of an Afghan National Army Regional Brigade facility. The work will be completed by April 11, 2005.

General Dynamics Decision Systems Inc. (GD) received a $10 million increment as part of a $295.6 million cost-plus-award-fee, time and materials, firm-fixed-price, and fixed-price-incentive-successive target contract for the Joint Tactical Radio Systems Cluster 5. The work should be finished by Dec. 30, 2011.

General Dynamics Land Systems received a $6.78 million delivery order as part of a $20.1 million firm-fixed-price contract for the common digital electronic control box. The work will be completed by Dec. 31, 2008.

Textron Inc.'s (TXT) Bell Helicopter unit received a $15.9 million modification to a previously awarded cost-plus-award/incentive fee contract for the non-recurring development of a turned exhaust system for the AH-1Z helicopter. The work will be completed in March 2006.

United Technologies Corp.'s (UTX) Sikorsky Aircraft unit received a $5.19 million modification to a previously awarded firm-fixed-priced, time and materials contract to exercise an option for the fiscal year 2004 special progressive aircraft rework program for a VH-60N helicopter. The work will be completed in March 2005.

[IIC]

[code:1:7f97576fe6]Analysts' Highest-Rated Stocks



This is a weekly ranking by First Call of the highest-rated stocks, based on analyst comments contributed within the past month to First Call's database.

To be included on the list, a company must be rated by at least five analysts.

First Call Consensus Recommendation Scale

1 = Buy

2 = Buy/Hold

3 = Hold

4 = Hold/Sell

5 = Sell


Most Attractive Issues
---- ---------- ------
Latest # Analysts Previous
Consensus Covering Consensus

(PCTI) 1.0 6 1.3
(STSA) 1.0 5 1.2
(KERX) 1.1 7 1.0
(CLDN) 1.1 7 1.2
(MSM) 1.2 6 1.0
(EPIC) 1.2 6 1.3
(MRTN) 1.2 5 1.3
(XRAY) 1.2 5 1.6
(ULBI) 1.2 5 1.3
(VCBI) 1.2 5 1.0
(DRL) 1.2 5 1.0
(DNET) 1.2 5 1.6
(DOVP) 1.2 5 1.3
(TSA) 1.3 16 1.1
(EPL) 1.3 9 1.4
(ELBO) 1.3 9 1.4
(SINT) 1.3 7 1.2
(PTEK) 1.3 6 1.4
(DSCO) 1.3 6 1.4
(APCS) 1.3 6 1.2
(PGNX) 1.3 6 1.4
(MDU) 1.3 6 1.6
(CCBI) 1.3 6 1.4
(NCT) 1.3 6 1.4
(FPO) 1.3 6 1.6
(WITS) 1.3 6 1.4
(EAGL) 1.4 9 1.3
(AVID) 1.4 9 1.6
(MOGN) 1.4 8 1.7
(MLS) 1.4 8 1.5
(EFII) 1.4 8 1.3
(ET) 1.4 7 1.3
(TRID) 1.4 7 1.2
(TMO) 1.4 7 1.6
(AVCT) 1.4 7 1.3
(GTNA) 1.4 5 1.8
(CEDC) 1.4 5 1.5
(RCRC) 1.4 5 1.2
(AMV) 1.4 5 1.5
(NDSN) 1.4 5 1.3
(MATK) 1.4 5 1.0
(THO) 1.4 5 1.7
(SSTI) 1.4 5 1.3
(BKST) 1.4 5 1.3
(EASI) 1.4 5 1.3
(CENT) 1.4 5 1.3
(CACS) 1.4 5 1.5
(PDC) 1.4 5 1.6
(WR) 1.4 5 1.5
(FSH) 1.4 5 1.3
(XPRSA) 1.4 5 1.8
(JAH) 1.4 5 1.8
(BCII) 1.4 5 1.5
(WRNC) 1.4 5 1.3
(AUO) 1.4 5 1.5
(ACA) 1.4 5 1.6
(TYC) 1.5 15 1.6
(WSH) 1.5 13 1.4
(RI) 1.5 11 1.4
(SFD) 1.5 10 1.6
(ENCY) 1.5 8 1.4
(MTCT) 1.5 8 1.4
(HUG) 1.5 6 1.7
(IIVI) 1.5 6 1.9
(JILL) 1.5 6 1.7
(WFR) 1.5 6 1.6
(CTRP) 1.5 6 1.6
(BDY) 1.5 6 1.6
(GNCMA) 1.5 6 1.4
(SCST) 1.5 6 1.4
(RPM) 1.5 6 1.8
(BKBOF) 1.5 6 1.6
(OZRK) 1.5 6 1.8
(MSFT) 1.6 30 1.7
[/code:1:7f97576fe6]

[IIC]

Naz Support/Resistance for Wednesday:

Resistance:

2154
2125
2092
2079
2053-Medium
2038-Weak
2016-Medium
1999-Medium
1980
1966-Medium
1945
1935-Weak

Support:

1902-Weak
1877
1865
1840

QQQ:

Resistance:

37.95
37.80
37.45
37.10-Medium
36.80-Weak
36.60
36.45
36.30
36.10-Medium
35.65
35.55

Support:

34.85
34.75
34.35
34.05

[IIC]

Analysts' Lowest-Rated Stocks



[code:1:131317e967]This is a weekly ranking by First Call of the Lowest-rated stocks, based on analyst comments contributed within the past month to First Call's database.

To be included on the list, a company must be rated by at least five analysts.

First Call Consensus Recommendation Scale

1 = Buy

2 = Buy/Hold

3 = Hold

4 = Hold/Sell

5 = Sell


Least Attractive Issues
---- ---------- ------
Latest # Analysts Previous
Consensus Covering Consensus

(MSO) 4.4 5 4.3
(ACAI) 4.3 8 4.1
(CLP) 4.2 5 4.3
(SPOT) 4.0 5 4.2
(PCU) 4.0 5 3.8
(INFO) 4.0 5 4.2
(WIN) 4.0 8 3.9
(EK) 3.9 10 4.0
(ALO) 3.8 5 3.4
(PDQ) 3.8 5 3.6
(EEX) 3.8 5 3.6
(PAL) 3.8 6 3.7
(WTNY) 3.8 6 4.0
(WFSL) 3.8 6 3.4
(SUI) 3.8 6 3.6
(STFC) 3.8 6 3.5
(LVLT) 3.8 11 3.7
(PPS) 3.8 13 3.9
(T) 3.8 26 3.7
(FGP) 3.7 6 3.6
(ADVS) 3.7 6 3.5
(TZA) 3.7 7 3.4
(HIW) 3.7 9 3.6
(DSGX) 3.7 9 3.6
(RYG) 3.7 11 3.8
(GBP) 3.7 11 3.8
(AIV) 3.7 15 3.6
(LAB) 3.6 5 3.8
(GAP) 3.6 5 3.5
(PZE) 3.6 7 3.5
(MWY) 3.6 7 3.7
(PTF) 3.6 8 3.5
(MGM) 3.6 12 3.3
(TE) 3.6 16 3.7
(EDS) 3.6 22 3.5
(TRH) 3.5 6 3.2
(BBOX) 3.5 6 3.3
(PVX) 3.5 6 3.6
(GLYN) 3.5 6 3.4
(SUP) 3.5 10 3.4
(TDS) 3.5 11 3.2
(CHTR) 3.5 16 3.4
(JP) 3.5 19 3.6
(PWI) 3.4 5 3.5
(MICT) 3.4 5 3.6
(RLRN) 3.4 5 3.3
(FCTR) 3.4 5 3.0
(AAII) 3.4 5 3.3
(DRRX) 3.4 5 3.8
(CSG) 3.4 5 3.8
(DQE) 3.4 5 3.3
(ENZN) 3.4 5 3.6
(SWC) 3.4 7 3.5
(OMI) 3.4 7 3.6
(UST) 3.4 7 3.6
(GAS) 3.4 8 3.5
(MYG) 3.4 8 3.1
(DDS) 3.4 9 3.7
(PGL) 3.4 9 3.5
(WGL) 3.4 9 3.5
(EP) 3.4 11 3.3
(GLK) 3.4 11 3.3
(BLDP) 3.4 12 3.3
(TSS) 3.4 16 3.5
(RF) 3.4 17 3.3[/code:1:131317e967]

[IIC]

SLD NAVR

[evilarya]

Where do you get the First Call info, thanks.

[IIC]

TOP STORIES

EBAY 2Q EARNINGS DOUBLE, TOP VIEWS


Reports earnings of 28c a share, up from 14c a share a year earlier, as revenue rises 52% to $773 million. Earnings before items of 29c a share beat analysts' expectations of 27c. Sees 3Q earnings of 24c a share on revenue of $770 million. Shares fall sharply, down 9%, in late trading.

MICROSOFT SHARES RISE 3%
ON DIVIDEND, BUYBACK PLAN

Shares rise almost 3% after software giant said it plans to distribute $75 billion of cash to shareholders via buybacks and dividends. See Special Summary on the Microsoft news.

GM STICKS TO $7/SHARE EARNINGS VIEW

Stays with 2004 target despite increasingly competitive North American market and pending accounting rule change that may affect number. Earlier, GM posted 49% jump in 2Q profit, beating Wall Street's estimates. Shares near flat.

GREENSPAN WARNS ON BUDGET DEFICIT

Completing two days of testimony to Congress, Fed chairman warns budget deficit could become negative factor confronting U.S. economy over longer term. Greenspan also reiterates gradualist view on raising interest rates.

JP MORGAN UP; OPERATING EPS TOPS VIEWS

Shares add 3% after JP Morgan posts loss of $548 million, or 27c a share, driven by $2.3 billion litigation charge and $60 million in costs related to Bank One merger. Excluding items, EPS of 85c tops views.

KODAK GAINS ON STRONG 2Q

Shares add 7% after net income rises 38% on 6% sales rise, indicating strategy of shifting to digital photography is working despite decline in core consumer film business. Also lifts year forecast and plans to cut 800 to 1,300 more jobs.

BIG DRUG FIRMS POST MIXED RESULTS

Pfizer and Roche post strong profits while Sanofi-Synthelabo reports a sharp rise in sales. Earnings at Merck and Wyeth slip, however, partly due to higher research and development spending. Schering-Plough reports another in a series of losses.

QUALCOMM 3Q NET RISES SHARPLY

Reports earnings of $486.4 million, or 58c a share, as continued strong demand for its mobile-phone chips drives better-than-expected sales. Qualcomm boosts projections for full year and predicts 4Q earnings above current views.

UNITED TECH UNITS FLASH EARNINGS POWER

Diversified manufacturer surprises analysts with 2Q sales and earnings well ahead of most views and boosts 2004 EPS outlook. Improving margins at Carrier and aftermarket strength at Pratt & Whitney drive results. Shares up 2%.

SEC RETHINKS MARKET REFORM PLAN

Regulators hope to issue new rules later this year to modernize U.S. stock markets, but are rethinking one idea, which would allow customers to opt for speed over price, SEC Chairman William Donaldson says.

IMCLONE FALLS ON WEAK ERBITUX SALES

Shares lose 18% after 2Q sales of its cancer drug fail to meet raised expectations. However, ImClone swings to 2Q profit of $24.2 million, or 29c a share, with revenue surging 300% to $71.5 million, beating estimates.

ERICSSON SURGES ON STRONG 2Q

Shares rise 5% Ericsson reports stronger-than-expected 2Q earnings, capping a dramatic turnaround in the fortunes of for the world's largest supplier of cell-phone networks.

COMCAST EXITS STAKE IN LIBERTY

Liberty Media clinches a deal to exchange certain cable programming assets, plus $545 million in cash, for the roughly 4% of its stock held by Comcast. Liberty shares up 1%; Comcast edges lower.

FANNIE 2Q NET UP, BUT CUTS 2004 FORECAST

Net income edges 0.9% higher to $1.11 billion, or $1.10 a share, from $1.10 billion, or $1.09 a share, helped by "exceptional" credit results and an improved capital position. But Fannie lowers its forecast for full-year profit growth.

DELTA GAINS ON PILOTS' CONTRACT OFFER

Shares rise 3% on sooner-than-expected contract proposal from pilots. CEO says latest wage concession offers of up to $705 million annually are good start, but indicates deeper cuts necessary to avoid bankruptcy.

LUCENT UP AS WIRELESS BOOSTS NET

Shares edge higher after Lucent reports its fourth consecutive profitable quarter and highest quarterly earnings in more than four years as fiscal 3Q sales at its wireless network division surged.

SPRINT 2Q NET JUMPS; RAISES OUTLOOK

Reports net income of $233 million, or 16c a share. Excluding special items, Sprint reports EPS of 20c, beating expectations by 2c. Raises 2004 EPS estimates to 74c-78c from previous guidance of 70c-75c. Shares gain 3%.



SMALL CAPS
Shares Fall As Biotechs, Chips Hurt Market

Selling was led in part by biotech sector, where sales of ImClone's Erbitux cancer drug disappointed investors. Nabi Biopharm falls 14% after posting a wider net loss in 2Q than it did in same period a year ago.


ADR REPORT
ADRs Follow US Markets Lower

American depositary receipts drop sharply along with broader U.S. markets on second-day of Greenspan's testimony on monetary policy. Latin American ADRs fall 1.94%, Asia index loses 1.24% and European issues fall 1.20%.

============ U.S. MARKETS ACTION ===========
DJIA down 102.94 points to 10046.13
NASDAQ down 42.70 points to 1874.37
S&P 500 down 14.78 points to 1093.88
10-year T-note down 7/32 at 102 06/32 yield 4.469
NYMEX Spot Crude up $0.14 at $40.58/bbl at close
Dollar/Euro down 0.0071 at 1.2258