What Supports The Bulls’ Argument
Light
volume and a large decrease in the number of 52-week lows made,
compared to recent down days, will help the Bulls’ argument, though some key
stocks broke down, as the SOX retraced to its 20-day moving average. The major
indexes sold off today, as they pulled back from four days of rallying. Price
action drifted south for the entire session, with negative earnings
announcements from key Dow stocks creating negative sentiment.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed -2.66% at 8036.03. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -2.41% at 860.02. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed -3.90% at
1,232.41.
There were no economic releases
today.
The 10-year U.S. Note
was -055 at 113 040.
The Dollar was -0.13 at
107.99.
Volume was average, at
1,507,273,000
on the NYSE, and 1,566,376,000
on the Nasdaq.
Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 2.87, and down
volume over up volume by a 5.26 ratio. Nasdaq declining issues over advancing
issues came in at 1.53, and down volume beat up volume by a 5.85 ratio.
The
VIX was -0.64 at 41.97. The
TRIN was +1.41 at 1.82.
Leading the Dow lower were:
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
-18.03% at 13.54, which missed its third-quarter earnings estimates by $0.02
with profits of $0.11 per share.
Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating),
-10.06% at 47.20, which saw its shares sell off after missing its estimates by a
penny.
General Motors
(
GM |
Quote |
Chart |
News |
PowerRating),
-6.97% at 34.14, which had its long-term corporate credit rating lowered by
Standard & Poors due to the company’s large unfunded pension liability.
International Business
Machines
(
IBM |
Quote |
Chart |
News |
PowerRating), -5.22% at 64.90, which announced after the close that it
beat its earnings expectations by $0.03 with profits of $0.99 per share.
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating), -5.13%
at 30.50, which lowered its 2003 outlook due to a soft commercial aerospace
market. The stock was listed on TM’s
Implosion List.
Stocks in the news:
Also in the chip business,
Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating), -22.27% at 7.85, announced that it had failed to meet
its revenue forecasts, claiming the industry had become weaker in the last 30
days. Also down in the sector were Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating),
-16.90% at 3.49, and Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating), -15.44% at 11.50.
Positive earnings in the semis
came from Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating), -6.31% at 24.48, as it posted
better-than-expected third-quarter results while increasing its fourth-quarter
lookout, and Teradyne
(
TER |
Quote |
Chart |
News |
PowerRating), -7.37% at 9.17, which posted a
smaller-than-expected third-quarter loss, though announced it expected shipments
to be flat in the coming month.
Investment bank J.P. Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), -1.71% at 18.29, beat its third-quarter earnings by $0.09
with profits of $0.16 per share.
Regional bank Capital One
Finance
(
COF |
Quote |
Chart |
News |
PowerRating), -19.60% at 27.85, beat its third-quarter earnings
estimates by $0.14, though was downgraded by various brokerages, including
Wachovia, who moved it to "sell" from "hold" due to a deterioration of
fundamentals despite beating its earnings expectations.
Auto maker Ford
(
F |
Quote |
Chart |
News |
PowerRating),
-6.87% at 8.26, beat its third-quarter earnings expectations, though was put on
"CreditWatch with negative implications" by Standard & Poors based on the
adequacy of its restructuring methods.
Motor cycle retailer Harley
Davidson
(
HDI |
Quote |
Chart |
News |
PowerRating), +1.05% at 52.36, beat its third-quarter earnings
expectations by $0.08 with profits of $0.54 per share.
Drug maker Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating),
+0.37% at 31.91, beat its third-quarter earnings expectations as it reaffirmed
its expectations of double digit revenue growth for the full year.
In the biotech sector,
Millennium Pharmaceuticals
(
MLNM |
Quote |
Chart |
News |
PowerRating), -23.20% at 7.68, posted a
wider-than-expected loss after the bell Tuesday, and was also downgraded by SG
Cowen and Deutsche Bank Securities.
Brokerage Merrill Lynch
(
MER |
Quote |
Chart |
News |
PowerRating), -0.25% at 35.90, beat its earnings expectations by $0.02 with pro
forma profits of $0.61 per share.
Communications developer
Harris Corp.
(
HRS |
Quote |
Chart |
News |
PowerRating), -17.03% at 28.00, fell after it lowered its 2003
fiscal outlook due to lack of recovery in the industry.
Construction and agricultural
machine company Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating), +2.05%at 38.76, posted earnings
ahead of expectations as it reaffirmed its 2002 estimates.