DAVE HARRIS: Welcome to Dave On Stocks. Podcast #63. It's Thursday June 28^th 2007. I'm Dave Harris. I'm a long term investor with a perspective on the market with individual stock advice.

As expected, the Fed left rates unchanged today. After a 2 day meeting, a key interest rate was left steady at 5.25 percent. The accompanying statement had a dovish tone, suggesting inflation at the core level was getting better. Still, the Fed is looking for "sustained moderation in inflation pressures". In other words, inflation is still the central bank's primary concern. In other economic news, the reading on first quarter GDP clocked in at .7 percent, a touch below expectations on Wall Street. I think this is good news because slower growth is what the Fed wants now and that will keep inflation under control. As long as employment is good, I think we'll see sustainable growth in the coming quarters. The Labor Department said today jobless benefits fell by 13,000 last week to 313,000. So there's good news there. Also, recent data suggests the consumer is strong, and that will maintain corporate profitability. Earlier this week, I think the Commerce Department's lower durable goods report (orders fell to 2.8 percent last month) underscored this goldilocks scenario of sluggish but sustainable growth.

General Mills (GIS) the cereal producer said sales rose 7% and better than expected. However, earnings missed by a penny at .62 cents per share. The company's full year guidance is in the range of $3.39-$3.43 per share. That's below expectations of $3.44, so I don't think that looks very good. I would sell the stock and buy Kellogg (K) instead. General Mills closed today down 1.18 at $58.27. Kellogg rose .14 to $51.54.

Shoe maker Nike (NKE) is a buy here in my view. Profit rose 32% in the fourth quarter compared to last year. Revenue went up $4.4 billion, or 9%. I like Nike's strong growth here and overseas. Future orders increased 12% globally in the quarter. This stock is a buy. Nike was unchanged at $58.29.

Wine maker Constellation Brands (STZ) reported a 64% decline in first quarter profit. Still, results beat the street and shares rose after the report. The British market is still a tough nut to crack for Constellation. Excluding items, EPS was .21 cents from last year's 33 cents. Sales fell by 22% to just over $900 million. I think now is a good time to sell the stock and buy Pepsi (PEP) instead. Constellation added .85 cents to close at $24.98. Pepsi rose .08 cents to $65.25

The Apple (AAPL) iPhone is set for release tomorrow. Early reviews of the phone have been overwhelmingly positive. I'm expecting further upside in the stock price based on new features and services to be available to iPhone customers. But for now, I have a hold on the stock and suggest giving consumers and the company time to really digest the product. Apple gave back 1.33 to close at $120.56.

The DOW closed 5.45 lower to finish at 13,422.28. NASDAQ was up a hair by 3.02 points to end at 2,608.37. The S&P 500 was down .63 at 1505.71. Crude oil gained .60 cents to $69.57 a barrel. The 10 year note fell 9/32 to finish at 95 7/32 yielding 5.12 percent.

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