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

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Adobe Systems (ADBE / Nasdaq)
JP Morgan Chase & Co.
Upgrading from long term buy to Buy, maintain $40 PT, expecting a turn with the new cycle. With ests set low enough, would buy ahead of new product cycle, expect pos sentiment to begin next week at MacWorld, where we expect PhotoShop7 to be previewed and then ship in the May Q.

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American Eagle Outfitters (AEOS / Nasdaq)
Morgan Stanley Co.
Increased investment rating to Strong Buy from Buy and a $38 price target. Valuation is compelling, where aeos contains strong brand position, sustainable unit growth, healthy free cash flow generation, and attractive ROIC.

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Air Products & Chemicals (APD / NYSE)
ABN Amro
upgrading from ADD to BUY and raising our target from $50to $60. With APD's maintaining its capital discipline andrepositioning its portfolio for a high return, high growth business model, we believe the company's 17% discount to the S&P 500 will narrow over the next 12 months.

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BellSouth Corporation (BLS / NYSE)
Weisel Partners
Upgrading from Market Perform to Attractive; Believe fundamentals improving in core ops; valuation compelling.

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BMC Software (BMC / NYSE)
Lehman Bros
Upgrading intermediate and long term Neutral to Strong Buy, while establishing a $25 price target. BMC shall benefit from the expected first quarter launch of Patrol Version 7, as well as increasing interest in its recovery and storage management solutions. With a solid balance sheet, downside from current levels appears to be mitigated.

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Cerner Corporation (CERN / Nasdaq)
JP Morgan Chase & Co.
Initating with a Buy, price target $60. HCIT Leader based on revenue growth and profitability. Solid revenue visibility owing to strong backlog - expect 17% revenue growth for 2002

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Conseco (CNC / NYSE)
Salomon Smith Barney
Downgrade from Underperform to Sell. Lowering 2001 EPS to 70c from 72c and 2002 EPS from $1 to 80c. Credit quality challenges at sub-prime consumer finance unit. Weak Life Ins. operating ratios. Target $1.

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Chelsea Property Group (CPG / NYSE)
Goldman Sachs
Downgrade from Outperform to Neutral. Strategy shift to growth. Current development not a meaningful growth avenue for the company.

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Compaq Computer Corp. (CPQ / NYSE)
SOUNDVIEW
Upgrading from Hold to Buy with a $16 price target. Absent a deal, we think CPQ is likely to restructure and shed its PC business. Though smaller, CPQ would be quite profitable, we estimate a $1.14 EPS run rate in FY03. Fundamentals for PCs continue to improve, lowering risk and improving outlook for CPQ.

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Cousins Properties (CUZ / NYSE)
Goldman Sachs
Downgrade from Recommended List to Outperform. Reducing target to $27 based upon decelerating FFO growth, valuation, and modest development exposure.

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Dow Chemical Company (DOW / NYSE)
Sanford Bernstein
Upgrading to Outperform; warning confirms below trend buying of chemicals and polymers in Q4 2001. Inventories now at minimum, and with the economy and energy prices at a low, expect strong volume recovery in 1H 2002, with 10-15% comps.

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Duke Realty Corp. (DRE / NYSE)
Goldman Sachs
Downgrade from Recommended List to Outperform due to significant development exposure, decelerated Funds from Operations (FFO) growth, core market softness, and current valuation.

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Finisar Corporation (FNSR / Nasdaq)
Credit Suisse First Boston
Upgrading to Buy from Hold with a $16 price target. Improving visability into the April quarter is evident, as improving fundamentals in its core markets and expanding portfolio of design wins could drive additional growth.

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Greenpoint Financial Corp (GPT / NYSE)
JP Morgan Chase & Co.
Raising 2002 estimates from $4.50 to $5.15 due to removal of charges and drag to EPS from manuf housing biz. Raising price target from $50 to $57. Acquisition activity could happen within 12mo. Top idea.

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Greenpoint Financial Corp (GPT / NYSE)
Lehman Bros
Raising fourth quarter and 2002 EPS estimates to $1.24 and $4.80. With the sell-off of the manufactured housing lending business, the true value of the company's niche lending expertise and valuable deposit franchise should shine through. Reiterate Strong Buy rating.

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Greenpoint Financial Corp (GPT / NYSE)
UBS WARBURG
Downgraded from Strong Buy to Buy with a price target of $47, due to charges of estimated $1 B pre-tax against Q4 earnings relating to the exiting of the manufactured housing business.

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Goldman Sachs Group (GS / NYSE)
Prudential Securities
upgrading from Hold to Buy, reflecting our more positive outlook for the securities industry in 2002. We have greater conviction that the stock will be 20%-30% higher at some point in 2002.

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Guitar Center (GTRC / Nasdaq)
Piper Jaffray
Upgraded from Neutral to Outperform. Raising target from $16 to $17.50, 2001 EPS to 88c from 84c and 2002 EPS to 96c from 91c. Sales rebound nicely. Increased confidence. Comps up 6%.

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Liberty Property Trust (LRY / NYSE)
Goldman Sachs
Upgrade from Outperform to Recommended list. Raising target from $31 to $33.

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Merrill Lynch & Co. (MER / NYSE)
Prudential Securities
upgrading from Hold to Buy, reflecting our more positive outlook for the securities industry in 2002. We have greater conviction that stock will be 20%-30% higher at some point in 2002.

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MIPS Technologies (MIPS / Nasdaq)
Weisel Partners
Upgrade from Market Perform to Buy; Believe operating results have bottomed; Low risk way to play semi cycle; Modest valuation, in our view.

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Morgan Stanley (MWD / NYSE)
Prudential Securities
upgrading from Hold to Buy, reflecting our more positive outlook for the securities industry in 2002. We have conviction thatthe stock will be 20%-30% higher at some point in 2002.

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Nash Finch Company (NAFC / Nasdaq)
Lehman Bros
Initiating coverage with a Strong Buy and a $35 price target, due to upgraded retail assets, improved efficiency and profitability, and the elimination of excess distribution capacity.

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Navistar International (NAV / NYSE)
Salomon Smith Barney
Initiating coverage with a Neutral rating and $39 target.

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Parker-Hannifin Corp. (PH / NYSE)
Salomon Smith Barney
Downgraded from Outperform to Neutral based on valuation. Maintain target of $44.

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Post Properties (PPS / NYSE)
Goldman Sachs
Downgrade to Underperformer from Neutral. Cash flow does not cover the expected dividend payment.

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Peregrine Systems (PRGN / Nasdaq)
Bear Stearns
Downgrade from buy to attractive.

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SBC Communications (SBC / NYSE)
Weisel Partners
Upgrading from Market Perform to Attractive; Believe fundamentals improving in core ops; valuation compelling.

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Scholastic Corporation (SCHL / Nasdaq)
Salomon Smith Barney
Initiating coverage with a Buy rating and $61 target. Market leader in children's book publishing. Recent results confirm strong fundamentals. Key drivers include the fifth Harry Potter and book four in paperback and cost reductions.

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USA Education (SLM / NYSE)
Warburg Dillon Read
Upgrading from Buy to Strong Buy, with a $105 price target.

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Verizon Communications (VZ / NYSE)
Weisel Partners
Upgrading from Market Perform to Attractive; Believe fundamentals improving in core ops; Valuations compelling, in our view.

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Abgenix (ABGX / Nasdaq)
Robertson Stephens
Disappointing phase IIa trial of ABX-IL8. Buy on weakness, fundamentals intact. Has shown efficacy for psoriasis. Reiterate Strong Buy. Target $34.

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AES Corporation (AES / NYSE)
Lehman Bros
Raised fiscal 2001 EPS estimates to $1.10 to reflect a strengthened Real/US$ exchange rate.

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AnnTaylor Stores Corp. (ANN / NYSE)
lehm
Raised price target to $42. We forecast a 150 bp improvement in operating margin, with most of the increase coming from an expected 120 bp reduction in the expense ratio.

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Boeing Company (BA / NYSE)
NEWS
reported that in the fourth quarter, delivered 144 commercial jet transports, bringing the total for the year to 527 airplanes, 5 more than the latest revised estimate of 522 following the Sept. 11 terrorist attacks.

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Best Buy Company (BBY / NYSE)
Sanford Bernstein
Best Buy will hold its annual investor / analyst conference onWednesday, January 9th in Las Vegas. The company will release December comp store sales figures on Wednesday morning:will be in the low single digit range, but would not be surprised to see them in the 3% to 5% range given a morerobust holiday selling season than previous expectations.

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Broadcom Corporation (BRCM / Nasdaq)
JP Morgan Chase & Co.
See continued strength into low $50's on new prod and design wins as detailed below. BRCM has gained back Apple Computer as a GigE customer. Will announce new 802.11b chipset in the next couple of weeks, with customers. Also in wireless, we believe co's new Bluetooth solution is competitive; working with MOT

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Bear Stearns Co's (BSC / NYSE)
Prudential Securities
Increasing price target and both our 2002 and 2003 EPS estimates,reflecting our more positive outlook for the securities industry in 2002.

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Continental Airlines (CAL / NYSE)
ABN Amro
Lowering 2001 EPS estimate from ($4.20) to ($4.87) as aresult of a 4Q charge. However, we are raising our 2002 EPS estimate from ($3.46) to ($2.07) based on our increased capacity estimates for 1H02. Maintain ADD rating.

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Circuit City Group (CC / NYSE)
Morgan Stanley Co.
Increased price target to $32 as sales are at or near a positive inflection point.

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3Com Corporation (COMS / Nasdaq)
Lehman Bros
Cut EPS estimates for third quarter 2002 to $(0.16) and calander 2002 EPS estimate to $(0.17), as a result of lower interest rates.

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Darden Restaurants (DRI / NYSE)
Deutsche Banc Alex Brown
Uping price target to $45 based on 23x PE valuations. Positive December sales shows that a combination of strong promotions, advertising clout, and execution is leading to market share gains at DRI. Reiterate Buy rating.

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Darden Restaurants (DRI / NYSE)
Lehman Bros
Raising fiscal third quarter EPS estimates to $0.48 and price target to $50, based upon strong fundamentals and increasing recognition that DRI has downside resiliency and upward leverage.

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Darden Restaurants (DRI / NYSE)
Salomon Smith Barney
Strong Dec. comps. Red Lobster reported 8%-9%, well ahed of our 3.5%. Olive garden was 11%-12%, well ahead of our 3.5%. Assisted by milder Dec. weather. Reiterate Buy. Target $45.

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Dynegy (DYN / NYSE)
NEWS
announced that it has settled the lawsuit with subsidiaries of ENE for Dynegy to exercise its option to acquire the Northern Natural Gas pipeline. The deal is expected to close before the end of the month.

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Electronic Data Systems (EDS / NYSE)
JP Morgan Chase & Co.
Adding to Focus List after stock has sold off on rehash of negative issues. We see as buying opportunity. See strong Q4 our $0.78 and st $0.79, feel good that 02 $3.06 will come up. Valuation attractive at 20xcash EPS 02E $3.30-$3.35.

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EMC Corporation (EMC / NYSE)
Bank of America Montgomery
Raising estimates and price target to $20 per share. Recent channel checks lead us to believe the company's sales are reaching an inflection point. We now expect EMC to lose $0.10 per share in fiscal 2002.

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Fannie Mae (FNM / NYSE)
Dain Rauscher
Fourth-quarter earnings due in the coming weeks should be strong,highlighting 2001 as a record year for mortgage originations.

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Ford Motor Company (F / NYSE)
Bank of America Montgomery
Raising fiscal 2002 earnings estimate to $0.30 per share, based on higher auto sales. Maintain Market Performer rating.

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Golden West Financial (GDW / NYSE)
Dain Rauscher
Strong fourth-quarter operating results should highlight 2001 as a record year for thrifts and mortgage finance companies.

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General Motors Corp. (GM / NYSE)
Bank of America Montgomery
Raising fiscal 2002 EPS estiamte to $1.95, based on higher expected sales. The new incentive strategy is in-line with our expectations, and we are modeling for a $5,000 variable profit on each vehicle sold in North America. Maintain Market Performer rating.

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General Motors Corp. (GM / NYSE)
Deutsche Banc Alex Brown
Raising fiscal 2002 estimate to $1.20 per share, because of the company's higher production schedule. Maintain Underperform rating, as new financing initiatives may prove to be more costly than previously expected.

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Int'l Business Machines (IBM / NYSE)
Salomon Smith Barney
IBM looks very solid. Raising target from $135 to $145

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Intel Corporation (INTC / Nasdaq)
Salomon Smith Barney
Strong finish to 4Q, raising 4Q EPS from 10c to 12c and 2002 from 65c to 70c. Raising target from $40 to $45. Reiterate Buy.

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Lehman Brothers Holdings (LEH / NYSE)
Prudential Securities
Increasing price target and our 2002 and 2003 EPS estimates reflecting more positive outlook for the securities industry in 2002. stock has fared substantially better in 2001 and we can not generate a price target higher than $72, which implies only 8% upside.

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Mercury Computer Systems (MRCY / Nasdaq)
SG Cowen
Lowering fiscal 2002 EPS estimate to $1.06 per share, following the company's earnings warning. Maintain Buy rating, as we believe the long-term growth story remains intact.

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National Instruments Corp (NATI / Nasdaq)
Salomon Smith Barney
Raising target from $35 to $42. Increased confidence. Relatively low exposure. Solid balance sheet, diversified customer base, strong mgmt team, compelling products and steady market gains.

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PNC Financial Services (PNC / NYSE)
Dain Rauscher
announced that it will take $615 million after-tax charge relating to restructuring of businesses.

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Sanmina Corporation (SANM / Nasdaq)
Weisel Partners
Demand soft but market share steady & integration on track;Reiterate Strong Buy.

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Starbucks Corporation (SBUX / Nasdaq)
Salomon Smith Barney
After close on 1/3 reported 3% Dec. comp gain, better than expected 1%. Mild weather and recently-unveiled Starbucks card. Reiterate Neutral and $16 target.

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Starbucks Corporation (SBUX / Nasdaq)
Lehman Bros
Raising first quarter EPS to $0.15 due to better than expected December Comps.

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Siebel Systems (SEBL / Nasdaq)
Bank of America Montgomery
We are reiterating our "Top Pick" status for SEBL, as the fourth quarter appears to be shaping up very well. We believe the company could beat our above-consensus $0.10 EPS estimate, and also raise forward guidance.

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St. Jude Medical (STJ / NYSE)
Piper Jaffray
Reiterate Buy and $85 target. Announced approval of a new ICD (Atlas). Competitively sized high output device. A refreshed ICD line up with more price points should drive STJ's ICD revenue growth of >30% in 2002, well above market growth.

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Sears Roebuck & Co. (S / NYSE)
Prudential Securities
earnings report on 1/17, expect them to exceed the First Call consensus estimate of $1.90 per share due to improving trend in apparel sales in the quarter. Could also positively impact gross margins. Raising 2002 estimate to $4.80 from $4.40 per share and price target to $65 from $60 per share due to our increased confidence in management's ability to achieve the productivity improvements outlined during the company's analyst meeting in October.

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Tyson Foods (TSN / NYSE)
NEWS
announced that earnings for the first quarter are expected to come in between 34c to 36c/share, above the company's previous guidance of 22c to 27c/share.

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Tyco Int'l. (TYC / NYSE)
Deutsche Banc Alex Brown
Shares fell 7% in 2 days as accounting fears once again is rumored. At these levels, TYC presents a great buying opportunity, where these rumors are plainly false. Fundamentals remain solid, as TYC beat estimates the last six of six quarters and has appreciated a median of 20%. Maintain Strong Buy with a price target of $81.

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Walgreen Company (WAG / NYSE)
Lehman Bros
Lowered both second and third quarter 2002 to $0.31 and $0.24, to reflect the weaker sales, mediocre seasonal sell-through, and a continuation of the "hot" promotional environment.

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WorldCom Group (WCOM / Nasdaq)
Goldman Sachs
4Q01 expected to be in-line. Lowering 2002 EPS from $1 to 92c. Lowered expectations should have minimal impact as investors have been expecting it and it is already priced in. Attractive risk/reward with $18 target.

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WellPoint Health Networks (WLP / NYSE)
SG Cowen
Raising estimates and price target to $170 per share. We now expect the company to earn $7.74 in fiscal 2002, after the company held a bullish conference call. Reiterate Strong Buy rating.

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WellPoint Health Networks (WLP / NYSE)
Morgan Stanley Co.
Increasing price target to $125 based on valuation. Believe that RightCHOICE synergies could exceed the $15m target.

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Yankee Candle Co. (YCC / NYSE)
Morgan Stanley Co.
Uping price target to $27, based on solid holiday traffic and fourth quarter comps track ahead of our 0% comp forecast.

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Deutsche Banc Alex Brown (Autos)
December sales were strong, but we believe investors should remain cautious about further pricing erosion. We'd use any strength to take profits.

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Salomon Smith Barney (Server & Enterprise Hardware)
Expecting in-line 4Q01 rev. and EPS results. End demand good, slightly better than lowered mid-Oct expectations. Meaningful upside surprises unlikely. Cost cutting could surprise 1c-2c from HWP, SUNW and NCR. IBM looks very solid. Raising target on IBM, $135 to $145, and LXK, $52 to $66. Best picks: IBM, HWP, RDWR and SUNW. Second best: LXK, NCR, and UIS.

Bear Stearns (Sentiment)
Index PUT/CALL spike was a one day wonder: Index P/C back down to 1.63 from 3.37, 10 day moving average 2.34, still high. Equity P/C .57, down from .66. bullish sentiment getting a touch high: SPX 77%, NDX 79%, 5 day moving average both 67%. SPX should have trouble getting through 1175 area, the high since 9/11.

Salomon Smith Barney (Computer Services)
Mixed improvement for 2002. Increasing maintenance and limited spending for new applications. 1Q02 may be tough. Top picks: EDS and ACN. Raised targets for CSC $38 to $50 , CTSH $31 to $45, DTPI $12 to $17, KCIN $15 to $20 and SAPE $4 to $8.

Prudential Securities (Brokerage)
Upgrading industry rating from Market Perform to Market Outperform. Clarity risk is declining. The 9/11 tragedy and ensuing geopolitical actions created a great deal ofuncertainty. Business and consumer confidence is now improving.

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8:30 a.m. Unemployment Rate 5.8%

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8:30 a.m. US Avg Hourly Earnings 0.3%

8:30 a.m. Change in Nonfarm Payrolls -150k

8:30 a.m. US Change in Manufact. Payroll ?90k

8:30 a.m. US Average Weekly Hours 34.1

Oscillator: 4.4

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Brinker International Meeting (sponsored by BAC)

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