DAVE HARRIS: Welcome to another podcast of Dave On Stocks. Show #56. I'm Dave Harris. It's Wednesday May 2^nd 2007. I'm a long term investor with a perspective on the market with individual stock advice.

Despite the mixed economic data of late, I think it's the positive corporate earnings driving the market into these consistent record closings. We also have fresh takeover news generating investor enthusiasm. News Corporation (NWS) lead by Rupert Murdoch made a $5 million bid for Dow Jones (DJ), owner of the Wall Street Journal. I think Dow Jones should take the offer and that Murdoch would improve the newspaper.

Yum Brands (YUM), the owner of KFC and Taco Bell, said profit rose 14% in the first quarter. Results were solid internationally, but performance was weaker in the U.S. Some restaurants in the east coast suffered an E. Coli outbreak at select taco Bell locations. I think business in the states will turn around for Yum. The E. Coli outbreak was just news hype. The quarterly results beat expectations and the company raised full year guidance. I have a buy recommendation on the stock. Yum close up 3.61 to $66.73 today.

Time Warner (TWX) the entertainment media company reported an 18% decline in first quarter profit. But since the cable division was strong, revenue rose 9% and results beat expectations. Ad sales at AOL and more phone subscriptions also helped in the quarter. Some are thinking this could be a turn around year for TWX. I want to wait and see how they do in the coming quarters before I can recommend the stock. They did raise full year guidance to .95 cents per share. But for now, I suggest you sell TWX. The stock closed today up .35 cents to $20.94.

Drugstore Walgreens (WAG) reported same store sales rose well over 9% in April. Pharmacy sales were particularly strong, growing by 16%. I like the stock here at $44.58. It's going to $55.

The maker of Pampers and other consumer items, Proctor & Gamble (PG) said 3^rd quarter profit rose by 14% and strong sales. Results met Wall Street expectations. The company also raised full year guidance. I'm surprised the stock has gone down since the report. I suggest you buy PG here at $62.37. The stock closed today down by .59 cents. I see it going to $75.

New factory orders rose over 3% according to the commerce department. That was above expectations. The ISM's manufacturing index looks good for last month. It rose to 54.7, which means expansion. Looks like people are making more but spending less. Personal income rose more than expected at .7%, but spending was only up by .3%. I hoped to see stronger spending. So it's a mixed economic picture here. The market is obviously encouraged by strong corporate earnings. The important April employment report comes out Friday.

The DOW closed up 75.74 to 13,211.88. The NASDAQ rose 26.31 to 2,557.84. The S&P 500 went 9.62 points higher to 1,495.92.

That's all for today's podcast of Dave On Stocks. I'm Dave Harris. Write me with any questions or suggestions at the "contact us" link on this page. My website is www.daveonstocks.com. I'll have another show for you soon. This is Dave On Stocks.