Positive Sign Ahead Of Retail Data

February 12, 2003
Daniel Beighley

The
major indexes are down midday after a disappointing earnings outlook
from chip maker Applied Materials had prices opening lower. The semis are in
slightly positive territory as they attempt to shake the bad news. Fed Chairman
Greenspan is once again answering questions on Capitol Hill, which has so far
brought no surprises to the market. Much focus is on tomorrow’s release of
retail data. The sector appears positive for as it tops the day’s gainers’ list.

There are no economic releases for the day.

The 10-year U.S. Note
is +055 at 114 180.

The Dollar is +0.13 at
100.76.

Gold is -7.00 at 355.50.

Crude OilÂ -0.16 at
35.28.

Volume is at 577,586,000
on the NYSE, and at 624,140,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 1.54, and down
volume over up volume by a 2.50 ratio. Nasdaq declining issues over advancing
issues are at 1.56, and down volume is over up volume by a 1.61 ratio.

Weighing the Dow down are:

Stocks In The News:

In the chip sector, Applied
Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating) has cut its second-quarter earnings estimates to
$1.0-0.02 per share vs. previous estimates of $0.03 per share. Merrill Lynch has
also cut its full year estimates on the company.

In the auto sector, General
Motors
(
GM |
Quote |
Chart |
News |
PowerRating) has been downgraded by Bank of America to “sell” from
“neutral” with the belief that the company will will cut its dividend in the
near-term.

Entertainment conglomerate
Viacom
(
VIA |
Quote |
Chart |
News |
PowerRating), , dropped after the company announced profits short of
expectations, and that the president, Mel Karmazin, will soon be selling $10
million worth of the company stock.

Beverage giant Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating), , announced earnings in-line with estimates, though said it will take a
$400 million charge from lay-offs.

Computer services company
PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating) is down sharply in the pre-market after beat its
fourth-quarter earnings expectations by $0.01, though guiding lower for the
first-quarter. The company expects first-quarter earnings to be $0.17-0.18 per
share vs. previous expectations of $0.20 per share.

Global positioning system maker
Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating) has beat its fourth-quarter earnings by $0.07
with profits of $0.42. per share. The stock is a member of TM’s Momentum List.

Communications services company
Alltel
(
AT |
Quote |
Chart |
News |
PowerRating) has been upgraded by UBS Warburg to “buy” from “neutral.”

Oil and gas company BP
(
BP |
Quote |
Chart |
News |
PowerRating)
is the subject of a Wall Street Journal article which cites investors who
believe the company possesses good valuation amidst recent developments.

Electric utilities company
DTE Energy
(
DTE |
Quote |
Chart |
News |
PowerRating) has missed its fourth-quarter earnings estimates by
$0.05 with profits of $1.21 per share.

Grocery retailer Safeway
(
SWY |
Quote |
Chart |
News |
PowerRating) has had coverage initiated by Deutsche Securities at “hold.”

Household product maker
Clorox
(
CLX |
Quote |
Chart |
News |
PowerRating) has been upgraded by Bank of America to “buy” from
“neutral.”

danielb@tradingmarkets.com

Positive Sign Ahead Of Retail Data

BUY THE FEAR, SELL THE GREED

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