DAVE HARRIS: Welcome to Dave On Stocks Podcast # 55. It's Wednesday April 25^th 2007. I'm Dave Harris. I'm a long term investor with a perspective on the market and individual stock advice.

Today the DOW crossed 13,000 for the first time. I think we have better than expected earnings in play and that's driving the investor enthusiasm. I'll get into some earnings news in a second. Meanwhile, manufacturing looks pretty good with durable goods orders up by 3.4%, which was better than the 2.5% rise expected. The index rose by 4.7% excluding transportation. Also the Fed's Beige Book, a reading on economic conditions, indicates modest activity with slower manufacturing in certain areas. No big surprises there in my view because our economy is supposed to be slowing down. That's why the market didn’t react much to this report. This reading on the economy will influence the Fed in their interest rates decision when they meet again on May 9^th. Also new home sales look a little better for last month as sales went up by 2.6%. However, the gain was well below expectations. I see no bottom in housing for the near term. But aside from housing, the economic data of late is pretty encouraging. I think that helped lift the DOW above that psychologically important 13,000 level. Investors are realizing that the economy is in good shape.

Pepsi (PEP), the beverage maker which is also a part of Frito Lay, said profit rose 16% in the first quarter on snack performance and global growth. EPS of .65 cents beat expectations with revenue up 9% to $7.35 billion. Currently, PEP is at $66.98 per share. I think the stock is going well over $70.

Amazon (AMZN), the online retailer, took the market by surprise with a first quarter profit that beat expectations. Net income doubled to $111 million on a 32% sales rise. The company raised full year guidance to a sales range of 13.4-14 billion which is above market views. I have a sell rating on the shares and would rather see how next quarter pans out before recommending the stock. AMZN trades at $56.81.

United Parcel Service (UPS) had lower profit that fell over 13% in the first quarter. Excluding items, results met views at .96 cents per share. Lower results were due to the removal of the older Boeing 727s for more fuel efficient 767 models. The company also blamed a slower US economy, but global conditions are positive. The company expects further growth in the second part of 2007. I'm going to wait and see on this stock. Meanwhile, I would sell the stock and buy Federal Express (FDX). That stock is at $108.12. I think it's headed to $120.

I am very impressed with the earnings from AT&T (T). Profit there doubled to $2.8 billion in the first quarter. Looks like wireless is doing well and the acquisition with BellSouth was a great move. Cingular had over 1 million new subscribers in the quarter. I suggest you buy AT&T. The company is the biggest and the best at what they do. How could you go wrong with a healthy 3.6% yield? AT&T trades at $39.14. This stock is headed to $45.

Tissue and paper towel maker Kimberly Clark (KMB) reported a 64% rise in quarterly profit on solid sales growth. We're seeing a double digit increases on their Huggies diaper brand. Excluding items, EPS was 1.03 which beat expectations. Full year profit guidance was affirmed in the range of $4.10-$4.20 per share, which meets Wall Street expectations. Even with the rising cost of pulp, I believe Kimberly-Clark will show further profitability in the long term. At $71.88 per share, I have a buy rating on the stock.

The DOW closed today up 135.95 to 13,089.89. The NASDAQ was 23.35 higher at 2,547.89. The S&P 500 up 15.01 finishing at 1,495.42.

That's it for today's podcast of Dave On Stocks. I'm Dave Harris. Write me with any questions or comments at the "contact us" link on this page. My website is www.daveonstocks.com. This is Dave On Stocks.