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Stock futures dip red in early morning

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Stock futures are fractionally lower this morning as S&P futures trade down 1.6 points at 1,165. Tech sentiment is slightly negative as NASDAQ futures trade lower by 12.5 points at 1,551 and Dow futures are lower by 10 points at 10,568.

Fair value for the S&P 500 today is $2.82. HL Camp & Company has their computers set for program buying at $4.01 and set for selling at $1.73. Fair value for the NASDAQ-100 today is $9.53.

Qwest lower after SEC asks for documents

Shares of Qwest Communications (NYSE:Q) are trading down 4.5% at $9.27 on the Redibook ECN after the company said the SEC was requesting documents related to the three aspects 2000 and 2001 financial statements that deal with sales recognition and accounting treatment of sales of optical capacity; the sale of equipment by Qwest to customers from which Qwest bought Internet services or contributed equity financing; and, changes in production schedules of some directories.

Qwest's CEO Joe Nacchio said, "We intend to fully comply with this request." Mr. Nacchio added that the inquiry is related to accounting issues already widely reported in the press.

Such inquiries are routinely kept private, but Qwest decided to disclose the SEC's request in light of the recent public environment.

Mr. Nacchia said the probe to impact its credit rating or a $1.5 billion bond deal scheduled for Tuesday. He did say the probe could affect a $2.5 billion shelf offering that the company filed in February, but he concluded that, "we don't think this significantly affects our de-leveraging or liquidity issues."

Tenet Healthcare expects to top estimates

Health maintenance organization (HMO) Tenet Healthcare (NYSE:THC) $60.31 said it expects Q3 earnings from operations to comfortably exceed analyst's current consensus expectations of $0.81 per share. Despite the weakest flue season in many years, the company achieved solid growth admissions to its hospitals during the quarter.

Jeff Bailey
Senior Market Technician
Option Investor

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