DAVE HARRIS: This is Dave On Stocks podcast #66. It's Tuesday July 17, 2007. I'm Dave Harris. I'm a long term investor with a perspective on the current bull market and individual stock advice.

The DOW passed 14,000 for the first time in history today reaching 14,021 at one point, but fell back a bit to close below that psychologically important level. We finished the trading day with the Dow Jones industrials up 20.57 to close at 13,971.55. I think we will close above 14,000 this week. The 2^nd quarter earnings will exceed expectations and drive the market higher in my view.

After the bell semiconductor maker Intel (INTC) said profits rose 44% in the second quarter. Excluding gains, EPS was .19 cents and revenue rose by 8% to roughly $8.7 billion. Earnings met while revenue beat street forecasts. But the gross margins came in below views. This company has had a big run up in stock price and just hit a 52 week high at 26.33 per share. But the shares are lower in after hours trading by .96 cents or 3.65 percent. I have a buy rating on the stock because this company is turning around. I don’t see Advanced Micro Devices (AMD) as a serious threat to Intel's future profitability.

In economic news wholesale inflation in June came in lower than expected with the PPI falling .2 percent on declining food and energy prices. The core figure, which excludes those elements, came in a hair above expectations with a .3 percent rise. I think investors like the news, but perhaps a more revealing indicator will be tomorrow's reading on June consumer prices. Wall Street expects that to rise by a modest .1%.

With Johnson & Johnson's (JNJ) second quarter profit of 9 percent, I can't help but reiterate my buy rating on the shares. I think it was a great move by the company to get the consumer health products from Pfizer (PFE). Their sales and earnings beat Wall Street expectations. They also guided full year per share earnings in the range of $4.02-$4.07. That's in line with expectations. However revenue guidance was lowered slightly to the range of 11-12 percent from a previous 12.5 percent. So JNJ closed down 1.06 to $62.74 today. In my view, Johnson & Johnson is a core healthcare portfolio holding. I think the stock is going to $75.00.

The tech heavy NASDAQ rose 14.96 to finish at 2,712.29. The S&P 500 fell just a touch by .15 to 1,549.37. The yield on the 10 year rose to 5.07 percent with the price falling 10/32.

This has been Dave On Stocks. Thanks for listening. I'm Dave Harris. Remember to write me with any questions on comments at the "contact us" link on this page. My website is www.daveonstocks.com.