Retail Rallies, But That’s Not The Whole Story

May 8, 2003
Vincent Mao

In economic news, Weekly
Jobless Claims dropped by 28,000 to 425,000 vs. estimates of 440,00.
However the overall job market still appears weak as the four-week moving
average of increased by 3,250 to 446,000.Â

The 10-year U.S. Note
is +160 at 116 305.

The dollar is -0.48 at
95.28.

Gold is +6.60 at 348.80

Crude Oil +0.68 at
26.90.

Volume is 665,000,000 on
the NYSE, and at 880,000,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 1.50, and down
volume over upvolume by a 3.46 ratio. Nasdaq declining issues over advancing
issues are at 1.80, and downÂ volume over up volume is at a 3.60 ratio.

Top Dow stocks are:

Stocks in the news:

Pharmaceutical company Cephalon
(
CEPH |
Quote |
Chart |
News |
PowerRating) is down 9% on double its average volume. Yesterday the company
reported first-quarter earnings of 21 a share, whereas the company had a loss of
5 cents a share in the same quarter a year ago. Cephalon bested earnings
estimates of 21 cents a share, however revenues fell short of expectations on
slow sales of its Provigil drug.Â Â

Shares of wholesaler Costco
(
COST |
Quote |
Chart |
News |
PowerRating)
hit a six-month high. The company reported April same-store sales that were up
10% from the same period a year ago.Â

Cost Plus
(
CPWM |
Quote |
Chart |
News |
PowerRating) is
trading at a five-month high. The company raised first quarter estimates to 11
cents a share or 2 cents better than analysts estimates due to stronger than
expected sales during Easter.Â

Dean Foods
(
DF |
Quote |
Chart |
News |
PowerRating) is
down 3.75% on heavy volume. The company reported first quarter results of 65
cents a share compared with a loss of 23 cents a share a year ago. This was a
penny better than analysts’ estimates. In addition Dean Foods also announced a 3
for 2 stock split.Â Â

Electronic Data Systems
(
EDS |
Quote |
Chart |
News |
PowerRating) reported a first quarter loss of 26 cents a share compared with
earnings of 72 cents a share.

Nextel CommunciationsÂ
(
NXTL |
Quote |
Chart |
News |
PowerRating) is off more than 6% on heavy volume. Goldman Sachs downgraded the
stock to “underperform” from “in line”. Goldman based the
downgrade on competition from Verizon and Sprint PCS over push to talk
technology.Â Â

Health and organic food
retailer Whole FoodsÂ
(
WFMI |
Quote |
Chart |
News |
PowerRating) is off more than 7% on seven times
its average. Late yesterday, the company reported second quarter results that
were 2 cents shy of estimates. The company also reported that full year results
would likely come in at the “low end” of estimates.Â

vincentm@tradingmarkets.com

Retail Rallies, But That’s Not The Whole Story

BUY THE FEAR, SELL THE GREED

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