Why This Is Such A Big Week

November 4, 2002
Daniel Beighley

The
major indexes gapped higher off the opening bell as Microsoft’s win
in its anti-trust suit helped lift sentiment. Despite holding gains for most of
the session, price action eventually sold off in the last two hours, giving the
daily bars a bearish bias. This week will be a biggie with mid-term elections
Tuesday, and a Fed interest rate announcement Wednesday. While many believe it
unlikely that political control of the Senate and House will be shifted, traders
will brace for the news. Likewise, many feel the market has factored in a rate
cut by the Fed, though Mr. Greenspan will have the final word.

Economic news September
factory orders fell by 2.3% due mostly to volatility in the transportation
sector with aircraft.

The 10-year U.S. Note
was -140 at 113 260.

The dollar was up 0.03
at 106.28.

Volume was above average,
at 1,574,036,000 on the NYSE, and
2,357,403,000 on
the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.42, and up
volume over down volume by a 2.10 ratio. Nasdaq advancing issues over declining
issues came in at 1.68, and up volume beat down volume by a 4.76 ratio.

The

VIX was +0.49 at 34.47. The

TRIN was -0.18 at 0.67.

Leading the Dow higher were:

Stocks in the news:

Entertainment behemoth and Dow
component Disney
(
DIS |
Quote |
Chart |
News |
PowerRating), +5.98% at 18.05, was the subject of a
positive Barron’s article which claimed the company is trading at half
the cost of its assets.

Healthcare facilities company
Tenet Healthcare
(
THC |
Quote |
Chart |
News |
PowerRating), +1.88% at 27.00, as the company said a team
of experts will look into the accusations by federal investigators over
unnecessary procedures.

Insurance company Anthem
(
ATH |
Quote |
Chart |
News |
PowerRating), +0.86% at 64.00, beat its third-quarter earnings estimates by $0.06
with profits of $1.05 per share. The company also raised its target for the
fourth quarter.

Online retailer Amazon.com
(
AMZN |
Quote |
Chart |
News |
PowerRating),5.15% at 18.78, was the subject of a negative article in Barron’s
over the weekend which questions the company’s valuation in relation to its
sector peers.

Communications equipment maker
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), +0.08% at 35.70, was the subject of a negative
Barron’s article over the weekend which claimed the company’s shares could
be worth as little as $17 based on the belief that the company is only
temporarily benefiting from growth in S. Korea, and will see little growth in
the US market.

Car maker General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), -0.44% at 33.87, rose after Bank of America Securities raised its
earnings estimates on the company due to an increase in its production schedule.

Air carrier United Airlines
(
UAL |
Quote |
Chart |
News |
PowerRating), +24.21% at 3.18, rallied as two employee groups said they would take
pay cuts to help keep the company from going bankrupt.

Clothing retailer The Gap
(
GPS |
Quote |
Chart |
News |
PowerRating), -0.64% at 12.37, rose after being upgraded by RBC Capital to
“outperform” from “underperform”.

Why This Is Such A Big Week

BUY THE FEAR, SELL THE GREED

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