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University of Michigan

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Hail! to the victors valiant
Hail! to the conqu'ring heroes
Hail! Hail! to Michigan
the champions of the West!

Sorry, college football fever is starting to set in. University of Michigan consumer sentiment fell to 91.5 in August from 92.4 July. Wall Street had been anticipating a slight increase to 93.5.

The Chicago Purchasing Managers Index for August came in at 43.5%, well above estimates of 40%. Factory orders for July fell 0.1%, but that was also better than expectations of a 0.5% drop.

The market has reacted favorably, and the Dow is currently up 110 points. That puts the Dow back above the psychological 10,000 level. The Nasdaq is up 24 points, and back above 1,800.

Software has taken over as the leading sector, and is up 2.59%. Internet stocks are close behind, and banks and retailers are also putting in nice gains. Biotechnology is today's worst performing sector, and airlines and healthcare are also in negative territory.

Gemstar (GMST), PeopleSoft (PSFT), and TMP Worldwide (TMPW) are the leading Nasdaq-100 stocks, and semiconductor companies Novellus (NVLS), KLA-Tencor (KLAC), and Applied Materials (AMAT) are the laggards.

Wal-Mart (WMT) is leading the Dow higher, with the help of 3M (MMM), American Express (AXP), and Home Depot (HD). Only five Dow components are lower, with Procter and Gamble (PG), and Johnson and Johnson (JNJ) down the most.

TiVo Daily Chart

TiVo (TIVO) reported a narrow than expected loss, and is up 8.29% today. The personal video recording company cut their losses to $34.5 million, from $38.9 million last quarter. The company added 40,000 new subscribers, bringing the total number of TiVo users up to 229,000. That generated revenues of $4.1 million.

Today's jump in stock price has broken the month long downtrend, but the TiVo is currently having trouble with the 50 and 200-day moving averages. TiVo has also had trouble climbing above $7.25 in August, and should once again provide resistance if the stock can manage to climb above the moving averages. If the narrower than expected loss can't spur enough buying interest, the stock could pull back to recent lows at $5.25.

Jeffrey Canavan
Assistant Analyst

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