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Last day of year shows flat open

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Stock futures point to a flat open for the last day of trading for 2002 as S&P futures (sp03h) have been edging back from their highs and currently trade up 1 point at 878.60, while NASDAQ futures (nd03h) slip lower by 2 points at 991 and Dow futures (dj03h) edge up 13 points at 8,320.

Fair value for the S&P 500 today is $0.20. That price will not change during the session. HL Camp & Company has their computers set for program buying at $0.64 and set for selling at $-2.42. Fair value for the NASDAQ-100 today is $3.20.

Today is a full trading session for equities and with no scheduled earnings, traders will be focused on the Conference Board's December consumer confidence numbers due out at 10:00 AM EST where economists are forecasting a slight up tick to 86.0 from the prior 84.1 reading in November.

Pre-market movers have Tyco Intl. (NYSE:TYC) gaining $1.25 from yesterday's close of $15.35 after the company said late yesterday in a filing with the SEC that an internal investigation revealed no "significant or systemic" fraud in the reporting of its financials.

Tyco (TYC) did acknowledge accounting errors in the SEC filing and said it overstated its financial results by $382.2 million.

Shares of Dow component International Business Machines (NYSE:IBM) $76.25 are tracking higher by 40-cents at $76.65 in a light pre-market trade after Soundview said that its channel checks indicate IBM's Q4 earnings could come in closer to the firm's estimates of $1.36 rather than consensus of $1.30 and believes the company's U.S. business finished above plan as services revenue grew 4% year-over-year. Soundview believes IBM will show record services booking for 2002 on the heels of several recent large deals, which suggests that the large deal logjam appears to be breaking up.

Yesterday, IBM announced it had inked a deal with banker J.P. Morgan Chase (NYSE:JPM) $23.99 for a $5 billion computer services contract.

Shares of biotech giant Biogen (NASDAQ:BGEN) $39.98 are gaining 28-cents to $40.26 after SG Cowen said that investors should own BGEN in 2003 given in-line Avonex numbers and upside potential from a strong Amevive launch. SG Cowen feels that speculation surrounding changes in Amevive's label are unwarranted, and expects FDA approval in the first quarter and European Union approval in the first-half of 2003.

Jeff Bailey

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