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Market's nervous as Pakistan moves troops

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Stock futures are indicating a lower open this morning as Pakistan has begun moving troops from the Afghan border, where they have been aiding U.S. forces in search for al-Qaida and Taliban fighters, due to the military crisis with India.

The Pakistan forces are being shifted to Pakistan's eastern border with India. Pakistan and India already have massed a million troops in the disputed Kashmir region.

The U.S. has expressed further concern about reports of plans for the redeployment, saying it could hurt the effort to seal the Afghan border and prevent the escape of Taliban and al-Qaida fighters or their re-entry into Afghanistan, where they might regroup or stage attacks.

Stock futures have responded to the downside here in the U.S. as S&P futures trade down 5.3 points at 1,062.50. NASDAQ futures are down 13.50 points at 1,205, while Dow futures drop 50 points at 9,875.

Fair value for the S&P 500 today is $0.19. That price will not change during the day. HL Camp & Company has their computers set for program buying at $1.09 and set for program selling at $-1.29. Fair value for the NASDAQ-100 today is $1.75.

Genesis Microchip lower after downgrades

Shares of graphic chip maker Genesis Microchip (NASDAQ:GNSS) $23.60 is actively traded at $20.12 (-14.7% from close) as Prudential is cutting estimates following yesterday's DisplaySearch revised data for the quarter and the firm's own channel checks. Prudential is lowering its June quarter estimates to $0.21 from $0.24 and revenues to $55 million from $60 million (below GNSS guidance of slightly higher than $60 million). For 2003, Prudential goes to $1.02 from $1.20. Prudential says DisplaySearch update provided light on an unusually aggressive pricing environment. Separately, CE Unterberg is downgrading its long-term rating on GNSS to "market perform" from "buy."

Weekly jobless claims fall 12K to 410K

Jobless claims fell in the week ended May 25, the Department of Labor reported this morning. The advance figure for seasonally adjusted claims fell in the latest week to 410,000, a decrease of 12,000 from the previous week's revised figure of 422,000. The four-week average, which smoothes out week-to-week fluctuations, fell 3,000 to 418,500 from the previous week's revised average of 421,500.

Jeff Bailey
Senior Market Technician
Option Investor

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