Stalk These Emerging Leaders
Stocks are pulling back after a four-day winning streak,
but a new stock group may be emerging today which could signal better times
ahead for selected Net and tech stocks. Traders are taking some profits off the
table after a four-day rally in the major averages and ahead of Intel’s first
ever mid-session discussion of performance. Lower oil prices are also weighing
on the market.
The Nasdaq is down 10.37 at 2223.29, the S&P 500 is
down 10.61 at 1272.96, and the Dow is down 84 at 11,091.
From the enterprise software group, Citrix
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beaming up after seeing a pick-up in its business. The best performing stock on
the session, up almost 20%, CTXS said it expects an “acceleration” in
its activity and for sales to grow around 25% rather than 20%. Volume is
already the sixth heaviest of the year.
The rally in Citrix is creating interest in related
enterprise software stocks. MicroMuse
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20- and 50-day lines on rising trade. Mercury Interactive
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picking up on the more hopeful theme in enterprise software as well and orbiting
near its session high, up 2.11 at 66.18.
And Rational Software
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day out of its pullback from a two-month high. On the intraday chart, RATL, up
.89 at 27.65, is trading on the top of its range and is within striking distance
of a new three-month high.
Perhaps more importantly, due to their bigger market capitalization’s and
heavier weightings on the Nasdaq 100, Veritas
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are bucking the market’s pullback today and posting gains of more than 3.3% each
today. Rallies in these key tech components could provide breadth and the
much-needed market leadership for a broader rally.
Intel
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mid-quarter for the first time ever in order to better manage profit
expectations. INTC has disappointed for three consecutive periods and has seen
its share price tumble as much as 70%.
Although the Semiconductor Industry Association said sales fell 22% in April,
there have been some bright spots in the chip arena. Yesterday, the largest maker
of programmable chips, Xilinx
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significantly. Whether such trends carry over into Intel’s chip businesses will
be partially revealed tonight, but even moreso in coming months when INTC does
logs a heavier seasonal sales volume.
The trade association American Petroleum Institute reported yesterday that
inventories rose last week. The trend in national stockpiles of crude oil and
products has been steadily up in recent months and inventories are believed
adequate, barring any refinery disruptions. Hence, oil drillers
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the oil index
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2.1%, respectively.
Chevron
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lower out of a Turtle Soup Plus two, and Halliburton
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lapped lower to tag its 50-day moving average.
In commodity prices, the hottest futures market of the year, unleaded
gasoline
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April base. Unleaded gasoline has been on TradingMarkets Futures Indicators
Implosion-5 List for the past two days.