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Dow - 3.69 at 10,593.10  -   Nasdaq - 17.42 at 2,057.64  -  S&P 500 - 3.30 at 1,189.89 

Market Wrap
(From Briefing):

The market reversed course, failing to extend three straight days of gains, after mixed earnings reports and economic news became catalysts for widespread consolidation... Amazon (AMZN 35.59 -6.29), despite beating revenue forecasts and providing upbeat Q1 and FY05 revenue guidance, set the underlying negative tone after it missed analysts' Q4 forecasts by $0.05... The bearish bias worsened, keeping virtually every sector in negative territory all day, after earnings misses from 7 S&P components (i.e. FON, IP and MYL) eclipsed better than expected earnings from 12 others (i.e. AN, CMCSA, HOT, PEP, RTN and WHR) in the wake of mixed economic reports... The Jan ISM services index came in worse than expected, falling 4.7 points to 59.2 (consensus 61.0), down from 63.9 in December, but still showed growth as any reading above 50 suggests expansion... Q4 productivity rose just 0.8% (consensus +1.8%), compared to a revised 1.6% rate in Q3, which caused unit labor costs (a key inflation gauge) to rise, while Dec factory orders rose just 0.3% (consensus +0.6%), but were not considered very noteworthy... Initial jobless claims fell 9K to 316K (consensus 330K), marking the third straight week below 324K, but while the data had no implications for the Jan non-farm payroll release, the trend in claims remained consistent with solid monthly payroll gains of 175-200K... Retail (+0.3%) was a focal point all day as the more than 50 retailers reporting January same store sales posted the best showing in three months according to the ICSC, which showed Jan comps rose 3.7% (consensus 3.0%)... But most areas closed lower with networking (-2.9%), led by weakness in Alcatel (ALA 12.39 -1.86) after it missed analysts' Q4 profit estimates, pacing losses in technology... Semiconductor (-1.3%) and hardware (-0.8%) were also weak while influential leaders to the downside also included financial, health care, transportation and materials... Homebuilding (+0.2%) posted modest gains throughout the day following strong Q4 earnings from SPF (+4.9%), which handily beat forecasts and guided Q1 EPS above consensus... Telecom services (+0.4%) also traded higher amid continued industry consolidation after reports suggested Qwest Communications (Q 4.41 +0.21) is in talks to acquire MCI Inc. (MCIP 20.16 +0.48) for roughly $6.3 bln, a merger also being pursued by Verizon Communications (VZ 35.89 +0.01)... Energy closed higher, despite a decline in crude oil prices ($46.45/bbl -$0.24), while health care distributors (+1.8%) also climbed after JP Morgan upgraded both MCK (+1.7%) and CAH (+2.5%) citing potential margin expansion... Treasuries were under pressure all day after the disappointing productivity data and a decline in weekly jobless benefits as the benchmark 10-year note finished down 5 ticks to yield 4.16%... The dollar, however, strengthened against both the euro (1.2974) and yen (104.46) after the ECB left rates unchanged at a six-decade low of 2% and a fall in the non-farm productivity figure potentially renewed future inflation worries, closing gold futures near four-month lows, down $4.50 (-1.1%) at $418.50/ounce...NYSE Adv/Dec 1476/1827. ..NASDAQ Adv/Dec 1267/1805.

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Today's Picks - February 04, 2005

1.   AKS - AK Steel Holding

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-04		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 15.62

2.   CCJ - Cameco

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-04		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 37.56

3.   AVO - Advanced Medical Optics

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-04		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 44.24

4.   COO - Cooper

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-04		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 81.35

5.   MAR - Marriot

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-04		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 64.25

6.   ODP - Office Depot

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-04		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 17.80

7.   XEL - Xcel Energy

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-04		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 18.27

8.   ECL - Ecolab

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-04		Short	Below 15 min low	Cover 1/2 once risk covered	Above HOD at time of setup
	* Please Note: If the stock gaps up at the open do not enter the trade unless it trades below 33.03

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EOD = End of day.
LOD = Low of day.
PDC = Previous Day's Close.
S/R = Support/Resistance.
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