This Could Increase Volatility

February 18, 2003
Daniel Beighley

Stocks
are showing strength midday as snow storms out East have left the
NYSE undermanned, which in

Kevin Haggerty’s experience can mean increased volatility. It’s all quiet on
the economic front, with no releases scheduled until tomorrow with housing
starts and building permits. Earnings wise, Dow component Wal-Mart has beaten
analysts’ expectations by a penny.

The only losing sector is
gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), -0.30%.

There are no economic releases for the day.

The 10-year U.S. Note
is -060 at 114 205.

The Dollar is -0.02 at
100.60.

Gold is -2.01 at 344.80.

Crude OilÂ -0.13 at
36.67.

Volume is at 604,067,000
on the NYSE, and at 727,426,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 2.53, and up
volume over down volume by a 7.12 ratio. Nasdaq advancing issues over declining
issues are at 1.78, and up volume over down volume is at a 7.22 ratio.

Biggest Dow gainers are:

Stocks In The News:

Business services company Reuters
(
RTRSY |
Quote |
Chart |
News |
PowerRating),
-11.22% at 13.14, announced its first-ever quarterly loss since going public in
1984, and is also the subject of a negative Wall Street Journal article
claiming the company has been hurt by the onset of the Internet. The company has
issued a profit warning for the first-quarter.

Discount retailer Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), +0.90% at
45.49, beat is fourth-quarter earnings by $0.01 with profits of $0.57 per share.
Revenue came in less than expected, though the company has guided in-line for
the first-quarter.

Waste management services company Waste Management Inc.
(
WMI |
Quote |
Chart |
News |
PowerRating), +0.64% at 22.02, has beat its fourth-quarter earnings estimates by
$0.05 with profits of $0.39 per share.

Personal services company
Cintas
(
CTAS |
Quote |
Chart |
News |
PowerRating), -10.04% at 35.50, has reduced its earnings outlook
for the full year 2003 to $1.45-1.50 per share vs. a consensus of $1.55 per
share.

Restaurant company
Darden Restaurants
(
DRI |
Quote |
Chart |
News |
PowerRating), -15.62% at 17.40, has reduced its earnings
outlook for the third-quarter to $0.34-0.36 per share vs. a consensus of $0.39
per share.

Oil services company Cal Dive
(
CDIS |
Quote |
Chart |
News |
PowerRating), -3.73% at
16.50, has missed its fourth-quarter earnings expectations by $0.02 with a loss
of $0.02.

Biotech firm Gilead Sciences
(
GILD |
Quote |
Chart |
News |
PowerRating) has been
downgraded by CSFB to “neutral” from “outperform”.

Telecom company SBC
Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), +1.03% at 23.59, received a positive mention in
Barron’s over the weekend from a boutique research firm who believes the company
will be one of the leaders in an on-the-mend telecom sector.

Drug maker Teva
Pharmaceuticals
(
TEVA |
Quote |
Chart |
News |
PowerRating), +2.02% at 36.89, beat its fourth-quarter
earnings expectations by $0.04 with profits of $0.50.

Insurance company St.
Paul Companies
(
SPC |
Quote |
Chart |
News |
PowerRating), -0.37% at 29.54, is under review by the credit
rating agency Moody’s for a possible downgrade.

And energy company
TXU Corp.
(
TXU |
Quote |
Chart |
News |
PowerRating), unchanged at 15.99, shares have been bought by famed
value investor Warren Buffett.

From TradingMarkets TM’s Implosion List,
defense company L-3 Communications
(
LL |
Quote |
Chart |
News |
PowerRating) is down 6.56% at 36.63.

danielb@tradingmarkets.com

This Could Increase Volatility

BUY THE FEAR, SELL THE GREED

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