THE "DAILY BREAD" FOR THE MARKET

Daily Morning Insights on the Market

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MARKET SUMMARY FOR TUESDAY JULY 9TH. 2002

DOW INDUSTRIAL: 9096.09 = -178.81

NASDAQ: 1381.12 = -24.49

S & P 500: 952.83 = -24.15

MOST ACTIVE STOCKS & SECTORS

The markets closed lower again as drug shares led the Dow lower on bad news. President George W. Bush's speech about tougher and longer jail terms for rouge corporate executives, and increased funding for the SEC to improve enforcement, couldn't help the market. The NASDAQ, which slumped after 1:00 PM, had a heavy trading volume of over 1.703 billion, while the NYSE had a volume of over 1.342 billion shares traded. Gainers included: Agnico Eagle, Anglo American Plc, Anglogold Ltd, APA Optics, Apex Silver, ARK Restaurants, ASA Ltd, Ashanti Goldfields Ltd, AT&T Wireless, Barrick Gold, BEI Technology, Bradley Pharmaceuticals, Coeur d'Alene Mines, Crawford & Co, Deutsche Telekom AG, Durban Roodepoort Deep, eCollege.Com, EMC Corp, F5 Networks, Freeport McMoran Gold & Copper, Glamis Gold, Gold Fields Ltd, Goldcorp, Harmony Gold Mining, Hecla Mining, Hershey Foods, Inco Ltd, International Specialty Products, IXOS Software AG, JDS Uniphase, Juno Lighting, Level 3 Communications, Lucent Technologies, Meridian Gold, Microsoft, Nautica Enterprises, Neoware Systems, Newmont Mining, Nextel Communications, Oracle, P&F Industries, Pacific Sunwear of California, Pan American Silver, Placer Dome, QRS Corp, Qualcomm, Quicksilver, Qwest Communications International, Randgold & Exploration, Scansoft, Select Comfort, TVX Gold, and US Airways.

MAIN REASONS FOR ACTIVITY

• The Bank of Tokyo-Mitsubishi reported that for weekending July 6th, US Chain Store Sales rose 0.7%.

• Richmond Fed Manufacturing Survey improved for the 6th. month in a row to 13.0 in June. Visit our Federal Reserve Monetary Policy Analysis page to read more, also visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• Johnson & Johnson lost 1.79% after an interest group sued its McNeil-PPC unit for blocking competition against its Diarrhea medicine, Immodium™.

• Merck & Co. lost 4.31% after suspending the IPO of its Medco Health Solutions for the third time.

• Wyeth, the makers of the Hormone Replacement Therapy drug, Pempro™, lost 24.25% after a new study shows healthy women who take hormone replacement therapy drugs increase their chances of blood clots, Cancer, heart attacks, and strokes.

• Nautica Enterprises gained 11.97% after reporting a fiscal Q1 loss that was less than Wall Street estimates, and CS First Boston upgraded it to a "buy".

• Scansoft gained 3.57% after announcing that its fiscal Q2 results will meet, or even beat Wall Street estimates.

• Tiffany & Co. lost 9.20% after warning about fiscal Q2 profits.

• Gold and Silver prices and stocks gained again due to a weaker US Dollar and as funds fled equity markets to safer havens.

• Hershey Foods gained 1.17% after reiterating that its financial results will meet Wall Street estimates.

• Citrix Systems and Retek lost 15.59% and 62.68% respectively after warning about their results late yesterday. Citrix Systems also plans to cut its workforce by 10%.

• Visit our Up to the minute market charts covering commodities, derivatives, foreign exchange, futures, interest rates, and global stock markets for the closing numbers worldwide.

• Bradley Pharmaceuticals gained 15.44% after raising its fiscal Q2 earnings outlook.

• Neoware Systems gained 12.95% after raising its fiscal Q4 outlook due to its IBM alliance.

• Pepsico Bottling Group lost 14.33% after reporting earnings that met, but less than what Wall Street expected. Pepsico lost 7.33% on the news.

• Pacific Sunwear of California gained 8.95% after raising its outlook, as its same store sales rose 10.5% in June.

• AFTER CLOSE: eBay, Electronic Arts, Goldman Sachs, Prudential Financial, Sungard Data Systems, and UPS gained after Standard & Poor's added them in its venerated S&P 500 Index. Also added was Principal Financial. Standard & Poor's announced the elimination of non US companies from the Index: Alcan, Barrick Gold, Inco Ltd, Nortel Networks, Placer Dome, Royal Dutch/Shell, and Unilever.

• AFTER CLOSE: Harford Financial Services announced that it will report a capital loss of $100 million to $120 million due to telecommunications debts.

• AFTER CLOSE: Ligand Pharmaceuticals is still losing in after hours trading after lowering its fiscal 2002 outlook due to weaker sales.

• AFTER CLOSE: IBM is gaining in after hours trading after announcing that in the past 5 quarters, it recorded $515 million in pretax losses for its defunct hard drive business.

• WORLDCOM Drama: Former Worldcom executives on July 8th took the 5th. in congressional hearings.

• ENRON Drama: Three British bankers were charged with a $7.3 million wire fraud relating to Enron late Thursday June 27th. The 3 were bankers at Greenwich NatWest, now part of Royal Bank of Scotland Plc.

• ANOTHER ADDITION: We now have services for Australia, Canada, South Africa, UK & Ireland, and United States. We will continue our qualitative, informative, and useful content policies at all our portals. Thank you for your support.

• JOIN THE DISCUSSIONS: Due to the immense popularity this column has received recently, and the willingness of our guests to communicate with each other, we have expanded our message boards so as to serve you better. Please check out (and post on) our NEW expanded message boards here

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR MONDAY JULY 8TH. 2002

DOW INDUSTRIAL: 9274.90 = -104.60

NASDAQ: 1405.61 = -42.75

S & P 500: 976.98 = -12.05

MOST ACTIVE STOCKS & SECTORS

The markets closed lower after another round of accounting scandals. The NASDAQ, which was down all day, had a heavy trading volume of over 1.706 billion, while the NYSE had a volume of over 1.170 billion shares traded. Gainers included: Agnico Eagle, Anglo American Plc, Anglogold Ltd, Apex Silver, Applied Extrusion Technologies, ASA Ltd, Ashanti Goldfields Ltd, AT&T, Bank of America, Barrick Gold, BHP Billiton Plc, Cablevision Systems, Cavalier Homes, Champion Auto Racing Teams (CART), Ciena Corp, Coast Dental Services, Coeur d'Alene Mines, Corus Entertainment, Crawford & Co, Docucorp International, Durban Roodepoort Deep, Elan Corp, Equant NV, Freeport McMoran Gold & Copper, Frontier Airlines, Glamis Gold, Gold Fields Ltd, Goldcorp, Harmony Gold Mining, Hecla Mining, Infogrammes, IXOS Software AG, Johnson Outdoors, JP Morgan Chase & Co, Kroger Co, Level 3 Communications, Meridian Gold, MIH Ltd, Mirae, Mity Enterprises, Monsanto, Newmont Mining, Nvidia, Omnicom Group, Oregon Steel, Pan American Silver, PayPal, Pfizer, Philip Morris, Placer Dome, Polydex Pharmaceuticals, Qwest Communications International, Randgold & Exploration, Rio Tinto Plc, Safeway, Tenneco Automotive, Tessco Technology, Vivendi Universal SA, and World Wrestling Entertainment.

MAIN REASONS FOR ACTIVITY

• US Consumer Credit rose to a strong $9.5 billion in May.

• Kansas City Fed Manufacturing Survey improved to 6.0 in June. Visit our Federal Reserve Monetary Policy Analysis page to read more, also visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• PayPal gained 8.05% after agreeing to be acquired by eBay for $1.5 billion in stock. eBay lost 7.12%.

• eBay announced that it expects its fiscal Q2 results to beat estimates, due to stronger international sales.

• Allegheny Energy lost 7.99% after warning about its earnings.

• Level 3 Communications gained 50.87% after Warren Buffett led investment team agreed to buy $500 million of Level 3's debt.

• Automakers closed lower after Morgan Stanley Dean Witter cut its 2003 earnings outlook on Ford Motor Company and General Motors.

• Merck & Co. lost 2.15% after announcing that its Medco Health Solutions unit, which is due to be floated this week, booked $14 billion in revenue it didn't collect.

• Gold and Silver prices and stocks gained due to a weaker US Dollar. Bonds were also hot today due to the weak dollar.

• Vivendi Universal gained 3.42% after reassuring investors that it will reach an agreement with creditors "very shortly".

• Visit our Up to the minute market charts covering commodities, derivatives, foreign exchange, futures, interest rates, and global stock markets for the closing numbers worldwide.

• Alcoa lost 2.64% after reporting fiscal Q2 net income that lost 24%, which was below Wall Street estimates, due to price pressures.

• World Wrestling Entertainment gained 0.46% after winning $3.5 million and a public apology from conservative media research company, Parents Television Council headed by L Brent Bozell, as they settle a defamation lawsuit.

• Intel lost despite announcing it is shipping its much awaited Itanium 2 Microprocessors for the high end server market.

• Senator John McCain (R) today joined Democratic Senators in calling for the resignation of the Securities and Exchange Commission (SEC) chairman, Harvey Pitt, for being slow to respond to the mounting corporate accounting scandal, probably due to his close ties to the 5 major accounting houses.

• President George W. Bush today announced that corporate executives who will fully mislead and are involved in accounting manipulations should face felony charges and possible jail time.

• AFTER CLOSE: AOL Time Warner is gaining in after hours trading after announcing that it has secured a $10 billion line of credit.

• AFTER CLOSE: Retek is still losing in after hours trading after lowering its fiscal Q3 and 2002 earnings outlooks.

• AFTER CLOSE: Citrix Systems is still losing in after hours trading after warning about its fiscal Q2 results, and announced plans to cut its workforce.

• WORLDCOM Drama: Former Worldcom executives on July 8th took the 5th. in congressional hearings.

• ENRON Drama: Three British bankers were charged with a $7.3 million wire fraud relating to Enron late Thursday June 27th. The 3 were bankers at Greenwich NatWest, now part of Royal Bank of Scotland Plc.

• ANOTHER ADDITION: We now have services for Australia, Canada, South Africa, UK & Ireland, and United States. We will continue our qualitative, informative, and useful content policies at all our portals. Thank you for your support.

• JOIN THE DISCUSSIONS: Due to the immense popularity this column has received recently, and the willingness of our guests to communicate with each other, we have expanded our message boards so as to serve you better. Please check out (and post on) our NEW expanded message boards here

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR FRIDAY JULY 5TH. 2002

DOW INDUSTRIAL: 9379.50 = +324.53

NASDAQ: 1448.36 = +68.19

S & P 500: 989.03 = +35.03

MOST ACTIVE STOCKS & SECTORS

The markets closed higher on mixed economic data and bargain hunting. The NASDAQ, which was up all day, had a light trading volume of over 1.119 billion, while the NYSE had a volume of over 0.698 billion shares traded. Gainers included: Affiliated Computer Services, Akamai Technologies, Amazon.Com, Amgen, AOL Time Warner, Applied Materials, Ask Jeeves, AT&T, Broadcom, Brocade Communications, Cisco Systems, Citigroup, CNET Networks, Dell, EDS, Elan Corp, El Paso Corp, EMC Corp, Ericsson, eUniverse Networks, ExxonMobil, Flextronics International, GE, Great Atlantic & Pacific Tea Co, Hewlett Packard, IBM, Inktomi, Intel, JDS Uniphase, Johnson & Johnson, JP Morgan Chase & Co, Juniper Networks, KLA-Tencor, Merck & Co, Micron Tech, Microsoft, Motorola, Nextel Communications, Nokia, Novellus Systems, Nvidia, Oracle, Overture Services, Peoplesoft, Pfizer, Philip Morris, QLogic, Qualcomm, SBC Communications, Siebel Systems, Sprint PCS Group, Sun Microsystems, Taiwan Semiconductor, Texas Instruments, TheStreet.Com, Tyco International, Veritas Software, Verizon Communications, WebMethods, Xilinx, Xerox, and Yahoo!

MAIN REASONS FOR ACTIVITY

• US Payroll Jobs rose 36,000 in June, but the Unemployment Rate rose to 5.9%.

• Economic Cycle Research Institute (ECRI) reported that its ECRI Future Inflation Gauge (ECRI FIG) gained 2.6% in June. Visit our Federal Reserve Monetary Policy Analysis page to read more, also visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• Grocer, Great Atlantic & Pacific Tea Company gained 10.06% after restating financial results of the last 3 years, and actually turned a loss into a profit.

• JDA Software lost 44.44% after warning about fiscal Q2.

• Technology and semiconductor shares gained after Goldman Sachs raised its ratings on Asian Technology companies to "overweight" on hopes of a PC market recovery.

• Hewlett Packard gained 7.10% after announcing plans to eliminate 1,580 jobs in the UK.

• Merck & Co. gained 3.34% and led pharmaceuticals higher after repricing the IPO of its unit, Medco Health Solutions, lower to $20 - $22 a share.

• Visit our Up to the minute market charts covering commodities, derivatives, foreign exchange, futures, interest rates, and global stock markets for the closing numbers worldwide.

• Motorola gained 4.41% after announcing plans to invest about $65.8 million to expand its Malaysian semiconductor plant.

• WebMethods gained 2.69% despite warning about its fiscal Q2.

• Worldcom Group and Worldcom MCI Group both gained after the CEO of Worldcom apologized yesterday for his company's accounting scandal.

• Internet and biotechnology shares gained today.

• WORLDCOM Drama: New CEO, John Sidgmore, on July 2nd. apologized for his company's debacle, but put the blame squarely on the previous administration before him. Mr Sidgmore has had the position for less than 7 months.

• ENRON Drama: Three British bankers were charged with a $7.3 million wire fraud relating to Enron late Thursday June 27th. The 3 were bankers at Greenwich NatWest, now part of Royal Bank of Scotland Plc.

• ANOTHER ADDITION: We now have services for Australia, Canada, South Africa, UK & Ireland, and United States. We will continue our qualitative, informative, and useful content policies at all our portals. Thank you for your support.

• JOIN THE DISCUSSIONS: Due to the immense popularity this column has received recently, and the willingness of our guests to communicate with each other, we have expanded our message boards so as to serve you better. Please check out (and post on) our NEW expanded message boards here

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR WEDNESDAY JULY 3RD. 2002

DOW INDUSTRIAL: 9054.97 = +47.22

NASDAQ: 1380.17 = +22.35

S & P 500: 953.99 = +5.91

MOST ACTIVE STOCKS & SECTORS

The markets closed higher on mixed economic data and bargain hunting. The NASDAQ, which rallied in last 3 hours, had another unbelievably heavy trading volume of over 2.667 billion, while the NYSE had a volume of over 1.521 billion shares traded. Gainers included: Administaff, Affiliated Computer Services, AOL Time Warner, Applied Materials, Ask Jeeves, AT&T, AT&T Wireless, Benchmark Electronics, Broadcom, Brocade Communications, Calpine, Check Point Software, Cisco Systems, Corning, Dell, EDS, EMC Corp, Emulex, Ericsson, FindWhat.Com, Flextronics International, France Telecom SA, Gerber Scientific, Hewlett Packard, Home Depot, IDT Corp, InfoUSA, Intel, Iomega, JDS Uniphase, Johnson & Johnson, Juniper Networks, KLA-Tencor, Liberty Media, Lockheed Martin, MCI Capital Partners, Merck & Co, Microsoft, Motorola, National RV Holdings, Neon Systems, Nextel Communications, Nokia, Norstan, Novellus Systems, Oracle, Pediatrix Medical Group, Precise Software, QLogic, Qualcomm, Rainbow Media Group, Research in Motion, Scientific Atlanta, Siebel Systems, Specialty Labs, Sprint PCS Group, Sun Microsystems, Texas Instruments, Tyco International, Value City Department Stores, Veritas Software, Worldcom Group, Worldcom MCI Group, Xilinx, and Yahoo!

MAIN REASONS FOR ACTIVITY

• The Institute of Supply Management (ISM) Non-manufacturing Index declined to 57.2% in June - any point above 50% is an expansion.

• US Factory Orders rose 0.7% in May.

• The Mortgage Bankers Association (MBA) reported that for weekending June 28th, its MBA Mortgage Applications Survey Index declined 3 points to 709. The Purchase Index declined to 378. The Refinance Index rose to 2633. The 30-year fixed mortgage rate rose to 6.47%.

• US Jobless Claims for weekending June 29th. declined 11,000 to 393,000. The 4-week moving average declined 250 to 392,000.

• The Energy Information Administration (EIA) reported that for weekending June 28th, US crude oil inventory rose 1.6 million barrels, while Distillates declined 300,000. Visit our Federal Reserve Monetary Policy Analysis page to read more, also visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• Scientific Atlanta gained 1.21% after announcing plans to cut 16% of its workforce.

• Midway Games lost 51.81% after warning about a significant revenue decline in fiscal Q2. Jefferies & Co. and Dougherty & Co. downgraded it to a "sell". Wedbush Morgan downgraded to "hold", and SWS Securities downgraded to "neutral".

• Pediatrix Medical Group gained 20.40% after raising its fiscal Q2 earning outlook.

• Affiliated Computer Services gained 4.30% on news that it is negotiating to buy the Back Office operations of Procter & Gamble (P&G), and secure a 10 year outsourcing deal with P&G valued at around $8 billion. P&G lost 1.03%.

• AOL Time Warner gained 12.30% after Merrill Lynch analyst Jessica Reif Cohen stated that the accounting concerns about the company were overblown, and the low price of the stock makes it a good buy.

• AMD lost 4.20% after cutting its sales forecast again, the second in 2 weeks! Intel gained on the demise of its smaller rival.

• Visit our Up to the minute market charts covering commodities, derivatives, foreign exchange, futures, interest rates, and global stock markets for the closing numbers worldwide.

• Hewlett Packard gained 4.10% after agreeing to pay Compaq shareholders $28.6 million to settle a class action lawsuit.

• Research in Motion gained 21.61% after reporting fiscal Q1 2003 earnings that beat First Call estimates.

• Openwave lost 57.08% after warning late yesterday that its fiscal Q4 loss will be bigger than Wall Street expected. Wall Street was quick with punishment as an army of analysts downgraded the stock.

• Worldcom Group and Worldcom MCI Group both gained after the CEO of Worldcom apologized yesterday for his company's accounting scandal.

• Martha Stewart Living Omnimedia lost 7.38% after its Founder, CEO and Chairman, Martha Stewart, boosted the amount of lawyers defending her insider trading charges. Martha Stewart also canceled a regular TV appearance on CBS' "Early Show" as it became apparent that the investigation surrounding her sale of Imclone Systems' shares before it bottomed will be discussed.

• WORLDCOM Drama: New CEO, John Sidgmore, on July 2nd. apologized for his company's debacle, but put the blame squarely on the previous administration before him. Mr Sidgmore has had the position for less than 7 months.

• ENRON Drama: Three British bankers were charged with a $7.3 million wire fraud relating to Enron late Thursday June 27th. The 3 were bankers at Greenwich NatWest, now part of Royal Bank of Scotland Plc.

• ANOTHER ADDITION: We now have services for Australia, Canada, South Africa, UK & Ireland, and United States. We will continue our qualitative, informative, and useful content policies at all our portals. Thank you for your support.

• JOIN THE DISCUSSIONS: Due to the immense popularity this column has received recently, and the willingness of our guests to communicate with each other, we have expanded our message boards so as to serve you better. Please check out (and post on) our NEW expanded message boards here

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR TUESDAY JULY 2ND. 2002

DOW INDUSTRIAL: 9007.75 = -102.04

NASDAQ: 1357.82 = -45.98

S & P 500: 948.09 = -20.56

MOST ACTIVE STOCKS & SECTORS

The markets closed lower for the second day in a row, and once again saw exceptionally high trading volume. The NASDAQ, which was down all day, had another unbelievably heavy trading volume of over 2.717 billion, while the NYSE had a volume of over 1.805 billion shares traded. Gainers included: Altera, Boyd Brothers Transport, Broadwing, Bway, Chipmos Technology, Ciena Corp, Controladora Comercial Mexicana SA, Crown Castle, Decoma International, DUSA Pharmaceuticals, E Com Ventures, Flextronics International, Forest Labs, Genset, Grupo Radio SA, Hickory Technology, Informatica, InsWeb, Integrated Defense Technologies, International Specialty, Irsa Inversion, Juniper Networks, Key Technology, Lehman Corning, Lehman Royal Caribbean, Martha Stewart Living Omnimedia, National Golf Properties, NetFlix, New Skies Satellite, Nuuven Connecticut Premium Income Municipal Fund, Omnova Solutions, Oyo Geospace, Peoplesoft, Perot Systems, Ramsey Youth, RPC inc, SID Nacional, Southern Energy, Stockeryale, TVX Gold, US Airways, Worldcom Group, Worldcom MCI Group, X-Rite, and Xilinx.

MAIN REASONS FOR ACTIVITY

• Bank of Tokyo-Mitsubishi US Chain Store Sales .Index for weekending June 29th. declined 0.9% Visit our Federal Reserve Monetary Policy Analysis page to read more, also visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• Vivendi Universal lost 20.89% after the dethroning of CEO Jean-Marie Messier created more problems than the company hoped. The company's accounting practices are now under suspicion. The leadership problems of the company haven't been solved. Moody's Investor Services downgraded its shares to high yield (junk) status, while Standard & Poor's downgraded to a step above junk status, and still has it on creditwatch.

• IPO Today: CIT Group, the former financial arm of Tyco International, lost 4.35% on its first day of trading. Tyco International, which raised $4.6 billion in much needed cash, lost 8.0%.

• Advent Software lost 29.73% after warning about its fiscal Q2 revenue late yesterday.

• Irish Drug company, Elan Corp, lost 66.40% after stating that it sees significant financial charges this year.

• Merck & Co lost 3.75% after the FDA approved a generic version of its blockbuster Hypertension drug, Primvil™.

• Worldcom gained 66.67% after IDT offered about $5 billion to acquire its MFS Network and Brooks Fiber units, prime properties for providing corporate and consumer telephone services. Worldcom, which still has $2 billion in cash, also announced it will try and renegotiate with lenders for a way to avoid filing for bankruptcy. IDT closed lower.

• Juniper Networks gained 10.72% after announcing that it has completed the acquisition of Siemens' Unispher Networking business. Dresdner Kleinwort Wasserstein upgraded it to an "add".

• Visit our Up to the minute market charts covering commodities, derivatives, foreign exchange, futures, interest rates, and global stock markets for the closing numbers worldwide.

• Yahoo! lost 12.84% after Ziff Davis announced that it will stop publishing Yahoo! Life magazine due to its failure to be competitive with other hi-tech magazines.

• Anadigics lost 27.92% after warning about its fiscal Q3 warning. Needham & Co. however, upgraded the stock to a "strong buy".

• Dell lost 2.46% despite announcing plans to open about 20 kiosk at malls to sell its products - Dell successfully used a kiosk at its world headquarters in Round Rock, Texas last Christmas.

• Flextronics International gained 1.36% after stating that it will meet financial guidance, and the company assured investors that its acquisitions will not hurt its liquidity.

• Semiconductor stocks were hit by powerful downgrades today. Applied Materials, Kulicke & Soffa, Novellus Systems, and Teradyne all closed lower after Morgan Stanley analyst, Steven Pelayo, downgraded them on concerns the recovery in the sector is unrealistically too optimistic.

• National Semiconductor lost 16.76% after Salomon Smith Barney downgraded it to a "neutral"

• Rudolf Technologies, a semiconductor company, lost 27.66% after Prudential Securities downgraded it to a "hold".

• WORLDCOM Drama: New CEO, John Sidgmore, on July 2nd. apologized for his company's debacle, but put the blame squarely on the previous administration before him. Mr Sidgmore has had the position for less than 7 months.

• ENRON Drama: Three British bankers were charged with a $7.3 million wire fraud relating to Enron late Thursday June 27th. The 3 were bankers at Greenwich NatWest, now part of Royal Bank of Scotland Plc.

• ANOTHER ADDITION: We now have services for Australia, Canada, South Africa, UK & Ireland, and United States. We will continue our qualitative, informative, and useful content policies at all our portals. Thank you for your support.

• JOIN THE DISCUSSIONS: Due to the immense popularity this column has received recently, and the willingness of our guests to communicate with each other, we have expanded our message boards so as to serve you better. Please check out (and post on) our NEW expanded message boards here

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR MONDAY JULY 1ST. 2002

DOW INDUSTRIAL: 9109.79 = -133.47

NASDAQ: 1403.80 = -59.41

S & P 500: 968.65 = -21.16

MOST ACTIVE STOCKS & SECTORS

The markets closed lower on the first day of trading in the second half. The first half incidentally, was the worst one seen in 30 years. The NASDAQ, which was down all day, had an unbelievably very heavy trading volume of over 2.976 billion (Worldcom accounted for 1.5 billion of that), while the NYSE had a volume of over 1.414 billion shares traded. Gainers included: 3M, Allen Telecom, ASA Ltd, Business Bancorp, Cache, Cannondale, Childtime Learning Centers, Coast Dental Services, Cone Mills, Dai Ei inc, Ericsson, Fairchild Corp, France Telecom SA, Gabelli Convertible Securities Fund, Gold Fields Ltd, Goldcorp, Handspring, Harbor Florida Bancshares, Harmony Gold Mining, Hitech Pharmaceuticals, LI Financial, Meridian Gold, Philip Morris, Polyone Corp, The Quigley, Rainbow Media Group, Rainbow Technologies, SGL Carbon AG, Shop At Home, Siderca SIAC, Southern Pacific Petroleum, Spartan Stores, Suntro, Synavant, Tasty Baking, Titanium Metals, Trump Hotels/Casinos, Tyco International, Vivendi Universal SA, Western Digital, and Zale.

MAIN REASONS FOR ACTIVITY

• The Chicago Fed National Activity Index (CFNAI), a good measure of economic activity, saw its 3 months moving average improve to -0.2 in May.

• Semiconductor Billings rose 2.7% in May, as all sections of the world recorded  increase, except Europe, which saw a decline.

• The Institute of Supply Management (ISM), formerly the NAPM, reported that its ISM Index rose to 56.2% in June, in line with expectations - any point above 50% indicates an expansion in manufacturing.

• US Construction Spending declined 0.7% in May. Visit our Federal Reserve Monetary Policy Analysis page to read more, also visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• 3M gained 3.58% after raising its fiscal Q2 earnings outlook.

• Tyco International gained 1.78% as investors expected the planned IPO of its financial services unit, CIT Group, to give it the much needed cash.

• Vivendi Universal gained 4.42% after its CEO, Jean Marie Messier, stepped down. Jean-Rene Fourtou, an executive with drug maker Aventis, was named interim CEO.

• Alkermes lost 67.83% and took biotechnology shares lower after the FDA refused to approve a long lasting and injectable version of its blockbuster Schizophrenia drug, Risperdal™.

• Northrop Grumman lost 5.45% after TRW accepted its $7.8 billion acquisition offer. Northrop plans to absorb the defense and related units of TRW, but sell the automotive business unit. TRW lost 0.70%.

• Worldcom lost 92.77% to close at 6 cents a share on its first day of trading since its announcement. Worldcom is facing a delisting from the NASDAQ, and the SEC blasted the report it submitted for being a chronology, instead of trying to the questions it requested.

• Hitech Pharmaceuticals gained 14.01% after the FDA approved its Flouxetine Oral Solution.

• Visit our Up to the minute market charts covering commodities, derivatives, foreign exchange, futures, interest rates, and global stock markets for the closing numbers worldwide.

• Ericsson gained 8.33% after the CEO of Alecta, the largest shareholder in Ericsson, stated in an interview that with Ericsson losing about 75% of its value this year alone, makes it vulnerable for an acquisition. Ericsson's Chairman, Michael Treschow however, made known that the company hasn't discussed acquisition or partnership with anyone.

• Gold Fields Ltd. gained 15.86% after it was added to the Philadelphia Gold & Silver Index. Gold shares were generally hot today due to market uncertainty.

• France Telecom gained 19.72% after the Financial Times reported that the indebted company might be re-nationalized by the French government. The French Finance Minister stated that there are no plans to or intentions to re-nationalize the company.

• AFTER CLOSE: Tyco International is still gaining in after hours trading after its financial services unit, CIT Group, raised $4.6 billion in its IPO debut - about $400 million less than what Tyco expected, but still a good chunk of change.

• AFTER CLOSE: Game publisher THQ is still losing in after hours trading after announcing that it is terminating a UK joint venture and will take a fiscal Q2 charge due to the decision.

• AFTER CLOSE: Anadigics is still losing in after hours trading after stating that its fiscal Q2 revenue will meet estimates, but it is not sure of fiscal Q3.

• AFTER CLOSE: Rational Software is still losing in after hours trading after warning about its fiscal Q2 earnings.

• WORLDCOM Drama: Worldcom executives were issued subpoenas late Thursday, June 27th.

• ENRON Drama: Three British bankers were charged with a $7.3 million wire fraud relating to Enron late Thursday June 27th. The 3 were bankers at Greenwich NatWest, now part of Royal Bank of Scotland Plc.

• ANOTHER ADDITION: We now have services for Australia, Canada, South Africa, UK & Ireland, and United States. We will continue our qualitative, informative, and useful content policies at all our portals. Thank you for your support.

• JOIN THE DISCUSSIONS: Due to the immense popularity this column has received recently, and the willingness of our guests to communicate with each other, we have expanded our message boards so as to serve you better. Please check out (and post on) our NEW expanded message boards here

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR FRIDAY JUNE 28TH. 2002

DOW INDUSTRIAL: 9243.26 = -26.66

NASDAQ: 1463.21 = +4.01

S & P 500: 989.82 = -0.82

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed as the NASDAQ gained, while the Dow lost. The NASDAQ, which was up most of the day, had a very very heavy trading volume of over 2.761 billion, while the NYSE had a volume of over 2.067 billion shares traded. Gainers included: AMD, Amgen, Anglo American Plc, AOL Time Warner, Aquila, Ariba, AT&T, AT&T Wireless, Bea Systems, Brightpoint, Bush Industries, Cablevision Systems, Charter Communications, Cisco Systems, Clear Channel, Comcast, Conexant Systems, Corning, Corillian Corp, Cox Communications, Dell, Divine, Dynegy, EMC Corp, Energy Partners, ExxonMobil, Hewlett Packard, IBM, Ikon Office, Insight Communications, International Specialty, Intuit, Juniper Networks, Liberty Media, LookSmart Ltd, Lucent Technologies, Manugistics Group, McDermott International, Meridian Resources, Motorola, Movado Group, MSC Software, Network Associates, Nortel Networks, NRG Energy, Nvidia, Officemax, Palm, Phillip Morris, PMC-Sierra, Prudential Financial, QRS Corp, Qwest Communications International, Rainbow Media Group, Rigel Pharmaceuticals, Roanoke Electric Steel Corp, SBC Communications, Seattle Genetic, Supervalu, Terra Lycos SA, Three Five Systems, Tyco International, United Retail Group, Viacom, Vitesse Semiconductor, and Wind River Systems.

MAIN REASONS FOR ACTIVITY

• The Chicago Purchasing Managers Index (PMI), a good measure of manufacturing activity in the Chicago area, gained to 58.2% in June - any point above 50% shows an expansion.

• The University of Michigan Consumer Sentiment Index rose to 92.4 in June.

• US Personal income rose 0.3% in May. The Savings rate rose 3.1%, as personal consumption declined 0.1%. Visit our Federal Reserve Monetary Policy Analysis page to read more, also visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• Xerox lost 12.88% after announcing that it is restating its books for the past 5 years and reclassify $6.5 billion in revenue.

• Specialty semiconductor shares gained.

• Bea Systems gained 1.17% after Goldman Sachs added them to its "Recommended List".