DAVE HARRIS: Welcome to Dave On Stocks podcast # 57. It's Wednesday May 9^th 2007. I'm Dave Harris. I'm a long term investor with a perspective on the market and individual stock advice.

As widely expected, the Federal Reserve decided to leave interest rates unchanged at 5.25%. This is the 7^th meeting in a row where fed officials paused on rates. I think the economy is moving along just the way the fed wants it. That's slow and steady growth. So I don't see a reason to change on rates. In due time however, I think slow autos and housing will prompt the fed to cut. The unemployment rate remains at 4.5% which is pretty low. Still, we have growth in the economy. I think that's great. Meanwhile, inflation is still the Fed's biggest concern. I think that can be controlled as we achieve a soft landing. The DOW closed at another record high today, up by 53.80 to 13,362.87.

News Corp (NWS) had a profit rise of more than 6% in the fiscal 3^rd quarter. Earnings per share came in at .27 cents which was in line with Wall Street. I think the company has been going very well, especially the TV and film studio where profit rose by 82%. News Corp owns 20^th Century Fox. I think Rupert Murdoch's $5 billion offer for Dow Jones (DJ) is a good idea. Dow Jones should take the offer. The stock fell .39 cents today to $23.26.

Technology networking company Cisco (CSCO) said third quarter profit rose by 34% and beat the street's expectations. The stock has been trading down though. I say buy Cisco on this weakness. I think sales were great at over $8.8 billion in the quarter. Revenue was up by 21%. I see further profitability in Cisco's future. This stock is a buy. It finished off by 1.85 to $26.51. It should go well over $30.

I also have a buy rating on Disney (DIS). Profit in the quarter rose to $931 million and revenue was well over $8 billion. Earnings beat expectations but the revenue number was slightly below views. I'm impressed with Disney's quarter. I also expect the upcoming "Pirates of the Caribbean: At World's End" to draw in big numbers. I suggest you buy some Disney. The stock fell .43 cents to $36.12.

Congratulations to tech company Avaya (AV) for being named the world's most ethical company. According to Ethisphere magazine, a publication focused on business and ethics, Avaya makes both ethical and responsible decisions for their customers, workers and investors.

There's more economic data ahead this week. Tomorrow we get April sales results from a number of big retailers. We'll get a feel for consumer spending. Then Friday it's a measure on wholesale inflation with the Producer Price index from the Labor Department. The market expects a .6% rise for last month and .2% increase in the core reading which removes food and energy.

The tech heavy NASDAQ closed 4.59 points up to 2,576.34. The S&P 500 ended 4.86 higher to 1,512.58.

That's all 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.