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Change In Ratings | Stock Comments / EPS Changes | Strategy Calls / Market Calls | Economics | Meetings | View Archived StreetNotes

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Andrew Corp. (ANDW / Nasdaq)
Credit Suisse First Boston
Initiating coverage with a Hold rating.

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Allegheny Energy (AYE / NYSE)
Morgan Stanley Co.
Downgrading from Outperform to Neutral, because of the company's inability to deliver consistent results. Investors should consider swapping shares for PPL or PEG.

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Bank of America Corp. (BAC / NYSE)
Bear Stearns
initiated coverage with a Neutral. BAC has the no. 1 or no. 2market share in 10 of the 21 fastest-growing states. BAC has the largest domestic banking operations of any financial services co. Over time, we believe scale will lead to better-than average levels of expense efficiency and greater diversification of credit risks. Of concern is BAC's low historical ROE. BAC's advantage in scale has not yet turned into an advantage in profitability.

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Cadence Design Systems (CDN / NYSE)
Goldman Sachs
Downgraded to Market Outperform from Recommended List (yesterday afternoon) based upon valuation. Like longer term and believe Dec qtr will be fairly strong, stock could see some pressure over the next few months and would begin to take some profit here.

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Edison Schools (EDSN / Nasdaq)
Merrill Lynch
Reinstating coverage with a near-term Accumulate and long-term Buy rating. We do not believe the stock price reflects a recent contract win in Philadelphia.

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FleetBoston Financial (FBF / NYSE)
Bear Stearns
initiated coverage with an Attractive. The current FBF is thecombination of eight of the 10 largest banks that were competing in New England a decade ago. FBF is the dominant bank in Conn. and Mass. and is the third largest in the N.Y. metro area.

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Freeport-McMoRan C & G (FCX / NYSE)
JP Morgan Chase & Co.
UPGRADING from market perform to buy, $16 price target, on back of recent cuts in global copper supply (4% in last 3 wks) and we see more cuts coming providing psych positive to copper mkt.

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Great Atlantic & Pacific (GAP / NYSE)
Credit Suisse First Boston
Downgrading from Buy to Hold.

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Gillette Company (G / NYSE)
Morgan Stanley Co.
Downgrading from Outperform to Neutral, with a $32 price target. Maintaining our estimates, but we do not believe the stock commands a premium to the general market.

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Intrawest Corporation (IDR / NYSE)
Goldman Sachs
Downgrading to Market Outperform from Recommended List. Oct. (Q1) EPS losses of ($0.22) vs. ($0.07), below our est. of ($0.10) due to timing of real estate deliveries. Destination bookings are down 13% and season ski pass sales up 27%. Poor Visibility; May be range bound. Lowering '02 EPS to $1.40 from $1.56

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Instinet Group (INET / Nasdaq)
Warburg Dillon Read
Initiating coverage with a Hold rating and $11 price target.

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Interpublic Group of Cos. (IPG / NYSE)
Smith Barney Shearson
Upgrade to a Buy from Market Outperform. Target raised to $33 from $27 based on 3Q results; expenses declined $50MM in Q3; IPG announced $300MM in annual cost savings achieved is credible.

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Kohl's Corporation (KSS / NYSE)
Prudential Securities
Downgrading to Hold from Buy as we now believe the stock reflects the company's exceptional fundamentals. We are not adjusting our slightly above consensus 2001 and 2002 estimates of $1.38 and $1.68, respectively.

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Kansas City Southern Ind. (KSU / NYSE)
Credit Suisse First Boston
Upgrading from Hold to Buy, with a $16 price target.

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Liberty Media(LMC.A / NYSE)
JP Morgan Chase & Co.
UPGRADING from long term buy to Buy, and raising 12-mo PT from $17 to $18, after co rep strong Q3 results due to assets that we thought would be divested, good cost cutting, and strong intl growth. Company should outperform due to low exposure to ad market, we expect management to continue to successfully execute on international cables expansion.

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Lightbridge (LTBG / Nasdaq)
Credit Suisse First Boston
Upgrading from Hold to Buy, with a $15 price target. We are also raising our 2002 estimate to $0.57 per share, as the Street has become too conservative.

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McData(MCDTA / Nasdaq)
Robertson Stephens
Initiating Coverage with Market Perform Rating; Leading Player in the Storage Area Networking Market. Cautious until an improvement of financial performance to our published estimates. Based on our analysis, we are setting our price target at $18.

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Network Appliance (NTAP / Nasdaq)
Deutsche Banc Alex Brown
Downgrading from Buy to Market Perform. The company just looks too expensive on an price/earnings.

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Network Appliance (NTAP / Nasdaq)
Goldman Sachs
Revs of $195M beat our $190M pub'd est but were slightly short of whisper revs of $200M. EPS at $0.02, beat our $0.01 est on higher gross margin. Lowering revs to $200M from $205M in Jan. qtr. and to $815M from $820M for FY'02. Our EPS est's are moving up to $0.08 from $0.06 and to $0.15 from $0.14 for FY'02 and CY'02 respectively.

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Network Appliance (NTAP / Nasdaq)
Warburg Dillon Read
We believe the company is turning the corner, as evidenced by a sequential pick-up in orders. Reiterate Strong Buy rating.

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Office Depot (ODP / NYSE)
Sanford Bernstein
initiating coverage with an outperform rating. Office Depot is in the midst of a positive inflection point in its growth and outlook. The growth outlook for Office Depot is better today than it has been at any point in the last five years.

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Bank One Corporation (ONE / NYSE)
Bear Stearns
initiated coverage with an Attractive. ONE has strong management; we rank Jamie Dimon as among the most capable executives in all of financial services, and he has assembled a top-flight team around him. ONE has strong franchises, with the top-three market share of bank deposits in half of the 14 states where it has a retail banking presence.

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Oracle Corporation (ORCL / Nasdaq)
SG Cowen
Downgrading from Buy to Neutral, as the recovery now appears to be delayed.

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Phelps Dodge Corp. (PD / NYSE)
JP Morgan Chase & Co.
UPGRADING from market perform to buy, $40 price target on back of recent cuts in global copper supply (4% in last 3 wks) and we see more cuts coming providing psych pos to copper mkt.

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Proton Energy Systems (PRTN / Nasdaq)
Smith Barney Shearson
Downgrade from Buy to Market Outperform. PRTN Reports 3Q01 loss per share of ($0.05) vs. Street (and our) estimate of ($0.07) per share loss, driven primarily by lower than expected R&D spending. Hogen system deliveries 17 vs. expected 40 units. Future leader; nearer-term quarterly lumpiness is likely to continue.

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Staples (SPLS / Nasdaq)
Sanford Bernstein
initiating coverage with a market-perform rating. We are forecasting 17% EPS growth through 2005 and think the company hasset the bar too high for its goal. Downside risk from the eroding small business environment is meaningful. We prefer to wait for more evidence that the new strategy is working.

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Too (TOO / NYSE)
JP Morgan Chase & Co.
DOWNGRADING from Buy to long term buy due to valuation. Co rep strong Q3, we are raising 01E from $1.18 to $1.22, 02E from $1.41 to $1.44, maintain 18 mo PT of $30. We think stock is fully pricing in good news and expect continued choppiness with early promotional activity.

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U.S. Bancorp (USB / NYSE)
Bear Stearns
initiated coverage with an Attractive. We believe USB has anaggressive sales culture, with the senior management team of the former Star Banc, which produced 15% annual revenue growth and 24% annual EPS growth from '93 to '00.

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Wells Fargo & Company (WFC / NYSE)
Bear Stearns
initiated with a Buy. WFC has a branch banking presencein eight of the 10 states that are expected to produce the fastest population growth over the next five years. WFC has an aggressive cross-selling culture; and we believe it is a highly efficient operator.

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Watson Pharmaceuticals (WPI / NYSE)
Bank of America Montgomery
Downgrading from Buy to Market Performer, following the company's earnings warning.

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Watson Pharmaceuticals (WPI / NYSE)
Warburg Dillon Read
Slashing estimates and price target to $32 per share. We now expect the company to earn $1.63 this year and $1.59 for 2002. Maintain Hold rating.

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Watson Pharmaceuticals (WPI / NYSE)
Credit Suisse First Boston
Downgrading from Buy to Hold.

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Abgenix (ABGX / Nasdaq)
Robertson Stephens
Target: $61.00. 2001E EPS: ($0.73); 2002E EPS: reduced to ($0.99) from ($0.97). Aquired technolgy to develop catalytic antibodies, may significantly expand its technology in the long run. Reiterate Strong Buy.

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Affymetrix (AFFX / Nasdaq)
Robertson Stephens
Raising target to $42 from $29 based on recent performance and business outlook, as well as comfortable competitive stance.

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Abercrombie & Fitch Co. (ANF / NYSE)
NEWS
reported third quarter earnings of 43c/share, a penny above the Street forecast, and in-line with the same figure a year ago. Net Sales were $354.5 million, compared to $364.1 million in the same period last year.

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Abercrombie & Fitch Co. (ANF / NYSE)
Bank of America Montgomery
The quarter was in-line with estimates, but we were disappointed with management's tone during the conference call. Maintain Buy rating, as the stock is near is historical trough valuation.

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Abercrombie & Fitch Co. (ANF / NYSE)
Merrill Lynch
Maintaining estimates and Buy rating, following the company's in-line October quarter.

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Abercrombie & Fitch Co. (ANF / NYSE)
Credit Suisse First Boston
Reducing full-year EPS estimate to $1.57, as we are concerned about sales in the holiday season.

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Abercrombie & Fitch Co. (ANF / NYSE)
Robertson Stephens
Target: $26.00. Lowering 2001 EPS to $1.55 from $1.57 reflecting slightly weaker-than-originally forecast merchandise margins. Reported in-line Q3:01 EPS of $0.43.

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Alliant Techsystems (ATK / NYSE)
Smith Barney Shearson
ATK's 8% selloff on Tuesday is due to success in Afghanistan; expected to benefit most from an ongoing conflict. Reiterate Buy rating and $100 target.

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AT&T Wireless Services (AWE / NYSE)
ABN Amro
maintain BUY rating and $30 target after AWE hosted aconference call with the EVP and CTO, Rod Nelson. We believe that AWE is executing its network deployment to plan.

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BEA Systems (BEAS / Nasdaq)
Robertson Stephens
Increased business indicated for the first time in several months. Target: $20.00. Estimate 2002 Cash EPS: $0.31, up from $0.30, 2003 Cash EPS: $0.33, up from $0.32.

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BEA Systems (BEAS / Nasdaq)
Goldman Sachs
Oct EPS of 6c inline with preannouncement of 5c-6c range. BEAS notes macroecon conditions, with competition not a factor. Large deal activity and new products gaining traction. Upcoming analyst day on Thurs.

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BEA Systems (BEAS / Nasdaq)
SG Cowen
Raising 2002 estimate to $0.31, in anticipation of a second-half recovery. Maintain Buy rating, with near-term upside potential to $20 per share.

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Cablevision Systems Corp. (CVC / NYSE)
Deutsche Banc Alex Brown
The company's third quarter revenue and cash flow were slightly ahead of our expectations. Maintain Buy rating and our $66 price target.

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Cablevision Systems Corp. (CVC / NYSE)
Lehman Bros
We believe the company's fundamentals have reached an inflection point, and CVC will post strong operating results over the next 12-24 monhts. Reiterate Strong Buy rating.

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CV Therapeutics (CVTX / Nasdaq)
Deutsche Banc Alex Brown
Raising estimates and price target, to reflect positive Phase III clinical data for Ranolazine. We now expect the company to become profitable in 2004, and for the stock to reach $65 per share. Maintain Strong Buy rating.

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Fannie Mae (FNM / NYSE)
Deutsche Banc Alex Brown
Raising estimates and price target to $96 per share, following the company's bullish investor day. We now expect the company to earn $5.19 per share in 2001 and $6 for next year.

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Fannie Mae (FNM / NYSE)
Bank of America Montgomery
Our estimates our under review, and will likely be revised higher. Net interest margin is improving, and we believe the company will look to extinguish more debt. Reiterate Buy rating and $102 price target.

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Fannie Mae (FNM / NYSE)
Lehman Bros
Raising fourth quarter and fiscal 2002 estimates, after the company's investor conference. Reiterate Strong Buy rating.

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Guidant Corporation (New) (GDT / NYSE)
Dain Rauscher
GDT's U.S. stent share climbed 10%+ during the last three monthsdue to MDT's injunction and surprisingly strong uptake of Pixel.Pixel, Guidant's new small vessel stent, grabbed nearly 7% of theU.S. market in just its second month of commercialization and isn't yet fully released. With few near-term competitive launches, Guidant is well positioned to protect these share gains and yield significant revenue and earnings surprises during the next 2 to 3 quarters.

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Harley-Davidson (HDI / NYSE)
Lehman Bros
Raising price target to $55 per share, as our channel checks shows that business is still robust. Reiterate Strong Buy rating.

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J.C. Penney Company (JCP / NYSE)
Warburg Dillon Read
Raising estimates to $0.34 per share in 2001 and $0.85 for next year. Maintain hold rating, based on valuation.

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CarMax Group (KMX / NYSE)
Morgan Stanley Co.
Raising price target to $25 per share, as we believe the used car market will continue to be robust. Reiterate Strong Buy rating.

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LTX Corporation (LTXX / Nasdaq)
Deutsche Banc Alex Brown
Raising price target to $26 per share, after in-line October quarter earnings and raised guidance for order bookings. Maintain Buy rating, although the risk/reward profile has diminished, given the stock's recent 70% run.

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LTX Corporation (LTXX / Nasdaq)
Morgan Stanley Co.
Raising estimates and price target to $30 per share. We now expect the company to break-even in fiscal 2003. Maintain Strong Buy rating.

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Medtronic (MDT / NYSE)
Dain Rauscher
With full October data in-hand, Medtronic has lost the vast majority of its RX coronary stent business in the United States since the September injunction. We are reducing our 2Q02 revenue estimate by $21 million to $1.568 billion and our FY2002 and FY2003 estimates by $56 million and $41 million, respectively.We expect Medtronic to still meet the consensus 2Q02 EPS estimate of $0.29, but likely by a very slender margin.

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Minnesota Mining & Mfg. (MMM / NYSE)
NEWS
Board of Directors has authorized the repurchase of up to $2.5 billion of the company's stock between Jan. 1, 2002 and Dec. 31, 2003

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Philip Morris Companies (MO / NYSE)
Goldman Sachs
Reiterate Market outperform; Blankenship medical monitoring case -- jury deliberating. Industry stands a decent chance of prevailing. Plaintiffs seeking $450 million although no cognizable injury and continue to smoke. Any adverse verdict will likely be reversed.

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Philip Morris Companies (MO / NYSE)
Credit Suisse First Boston
Adding the stock to our Focus List. We believe MO is trading at attractive levels, given the company's improving fundamentals and 5% dividend.

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Merck & Co. (MRK / NYSE)
ABN Amro
maintain BUY rating after MRK released data at the AmericanHeart Association Meeting demonstrating the benefits of Zocor. The statin reduced the risk of death from heart attacks or othercardiovascular events in high-risk patients.

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Overture Services, Inc.(OVER / NYSE)
Smith Barney Shearson
New search partnership with Yahoo! could boost click volume sharply. Deal only until 4/02, Yahoo evaluating others. Rev impact for 02 could be 10 pct plus and EPS 10c plus. Raising target to $36 from $30.

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PNC Financial Services (PNC / NYSE)
Bear Stearns
Initiated coverage with Neutral. We believe PNC is moving in the right strategic direction, as it identified an important trend in financial services, the superior long-term growth of intermediation through the capital markets compared to bank lending, and has been taking the right strategic actions to take advantage of that superior growth

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Rainbow Media Group (RMG / NYSE)
Morgan Stanley Co.
Raising estimates through 2001, following positive third quarter results. We now expect the company to earn $0.32 per share in fiscal 2002. Maintain Neutral rating.

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Sycamore Networks (SCMR / Nasdaq)
NEWS
reported a 1Q loss of 16c/share, versus Street expectations, calling for a loss of 17c/share. Last year, the company posted a profit of 5c/share. Revenues declined to $21.2 million, below the $120.4 million in the same period a year ago.

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Tibco Software (TIBX / Nasdaq)
Warburg Dillon Read
Raising price target to $12, on higher expectations for the fourth quarter. Maintain Buy rating.

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TJX Companies (TJX / NYSE)
Morgan Stanley Co.
Lowering fiscal 2002 estimate to $1.92 per share, to conform with management's new guidance. Maintain Neutral rating.

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Tyco Int'l. (NEW) (TYC / NYSE)
JP Morgan Chase & Co.
We recommend buying into the TYC meeting tomorrow in spite of the recent strength. Kozlowski acknowledgement of stock issuance and ROIC points we raised last week should be worth more than a multiple pt. Look for reaffirmation of earnings tgt of $3.70, which includes a conservative expectation for a 10% rev decline at Electronics.

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Vitesse Semiconductor (VTSS / Nasdaq)
NEWS
announced that it has reduced its workforce by approximately 10% of the 1,300 people that it employs worldwide.

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Watson Pharmaceuticals (WPI / NYSE)
Goldman Sachs
Declined 40% on news of a 44% miss to 3Q01 earnings expectations and reduced guidance for 4Q01 and 2002. Reported 3Q EPS of $0.35 versus our estimate and consensus of $0.62. Lowering EPS estimates for 2001 from $2.23 to $1.65 and for 2002 from $2.69 to $1.54. reduced target from $66 to $38

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Williams-Sonoma (WSM / NYSE)
Lehman Bros
Raising EPS estimates to $1.14 this year and $1.38 for fiscal 2002. Maintain Market Perform rating, on valuation.

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Smith Barney Shearson (U.S. Oil & Gas)
U.S. crude and petroleum product inventories increased by 4.1MMB last week; Currently less than 2% below the 10-year average. Crude stocks increased by 1.1MMB last week and are now only 3.4% below normal. Historically, when Midwest crude stocks reach 70MMB, this tends to put downward pressure on oil prices.

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S&P (S&P Changes)
TLGD will replace AIND in the S&P SmallCap 600 Index after the close of trading on Nov. 20. UHS will replace GLM in the S&P MidCap 400 Index after the close of trading on November 20, 2001. SDC is acquiring Global Marine. PLFE will replace UHS in the S&P SmallCap 600 Index.

Bear Stearns (Semiconductor Industry)
We are approaching a more positive stance on stocks in the semiconductor equipment universe. We do not expect a recovery until at least the next two to four quarters. We note that stocks typically move six to 12 mos. ahead of the fundamentals, so investors need to be in tune with the positive signs along the road. We highlight data points that are beginningto show signs of improvement. We believe capital spending in '02 could be better than expected. Stocks that we would focus on now include: AMAT KLAC NVLS and LRCX.

Bear Stearns (Banks)
We initiated coverage of the regional bank sector with 14 U.S. regional bank stocks. We are neutral on this group, because andbelieve it should be difficult for these stocks to outperform in a flat to down stock market. We believe bank stocks as a group could outperform the market by declining less.

Warburg Dillon Read (Airlines)
We would remain aggressive buyers in this sector, preferring AMR, NWAC, CAL and DAL.

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Oscillator: 5.8

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8:30 AM: Retail Sales for October. In September, the figure came in at -2.4%.

8:30 AM: Retail Sales -Excluding Autos for October. In September, the figure came in at -1.6%.

3:00 PM: Federal Reserve Chairman Alan Greenspan to give keynote address at U.S. Chamber of Commerce "Economic Outlook" forum.

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IBM Fall Security Analyst Meeting

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ADP Semi-Annual Analyst Meeting

COC Analyst Meeting

HB Investor Meeting

IDXC Analyst Meeting

LRCX Meeting with Management

TOY Analyst Meeting

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