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Stock futures show gains in anticipation of Taft Hartley

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Stock futures are showing gains as retailing stocks recovery some of yesterday's losses on hopes that some type of settlement or short-term resolution is coming to the West Coast dockworkers lockout.

Retailing stocks are finding some upside this morning on talk and speculation that President Bush will invoke Taft-Hartley today, which gives the President the authority to order ports back to work for an 80 day cooling off period.

Shares of Sears (NYSE:S) $32.25, which lead the sector lower yesterday after warning of a profit shortfall is gaining $1, or 3.1% to $33.25 in Instinet trading. Dow components Wal-Mart (NYSE:WMT) $50.35 are rising $1.65 to $52 and Home Depot (NYSE:HD) $24.21 are higher by $0.79 to $25.00. Yesterday, these stocks fell 14%, 2.7% and 6.2% respectively and had the S&P Retail Index (RLX.X) 253.68 closing at a 52-week low, and very close to violating an intra-day 52-week low of 249.94 set on July 24, 2002.

S&P futures (sp02z) are trading up 8.5 points (+1.07%) to 797. NASDAQ futures (nd02z) are higher by 7 points (+0.86%) to 820 and Dow futures (dj02z) are gaining 62 points (+0.83%) to 7,505.

Fair value for the S&P 500 today is $0.50. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.56 and set for program selling at $-1.91. Fair value for the NASDAQ-100 today is $2.98.

In the technology arena, shares of Cisco Systems (NASDAQ:CSCO) $9.08 are gaining $0.15 (+1.6%) to $9.23 despite Bear Stearns cutting the networking giants FY03-04 estimates below consensus estimates based on the belief that business is likely to be tracking below plan on the top-line across all major geographies, and that there is a chance that the miss could be much larger that the Street is estimating. Bear Stearns is cutting FY03 rev/EPS estimates to $18.3 billion/$0.52 from $20.2 billion/$0.56 and FY04 to $20.5 billion/$0.56 from $22.9 billion/$0.61.

Jeff Bailey

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