Will These Stocks Lead The Dow Down?

February 26, 2003
Daniel Beighley

The major indexes ended in the red for the day,
as price action trended down for most of the session with a close near the
bottom of its range. Disappointing revenue results from Dow component Hewlett
Packard helped to lower sentiment, as a huge loss on the stock weighed the Dow
down. Making new 52-week lows on the Dow were McDonalds and Boeing. Also closing
at the bottoms of their daily ranges were the semiconductors and broker/dealers.

There were no economic releases
for the day.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was +095 at 116 060.

The US dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was -0.22 at 99.69.

Volume was below
average, with the NYSE coming in at 1,316,852,000
and the Nasdaq at 1,189,926,000.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.53, and down
volume over up volume by a 1.85 ratio. Nasdaq declining issues over advancing
issues came in at 1.54, and down volume beat up volume by a 5.71 ratio.

The

VIX was +0.90 at 37.02. The

TRIN was +0.33 at 1.19.

Leading the Dow down were:

Stocks in the news:

Computer hardware maker
Hewlett Packard Corp.
(
HPQ |
Quote |
Chart |
News |
PowerRating), -15.45%
at 15.37, was downgraded by Goldman Sachs to “in-line” from “outperform,”
after the company beat its first-quarter earnings expectations by $0.01, though
fell short of revenue targets.

Retailer K-Mart
(
KMRTQ |
Quote |
Chart |
News |
PowerRating),
-6.66% at 0.14, made top news as two of its former executives have been indicted
on fraud charges by the SEC. One of the indicted was an ex-senior vice
president, and the other a former divisional vice president.

Investment services company
Morgan Stanley
(
MWD |
Quote |
Chart |
News |
PowerRating), -2.07% at 35.42, may have have charges filed
against it by the SEC over allegations that the company gave out IPO shares to
investors based partly on commitment to buy more.

Software and programming company Autodesk Inc.
(
ADSK |
Quote |
Chart |
News |
PowerRating),
+6.09% at 14.10, beat its expectations for fourth-quarter earnings, though
profits fell 70% from a year ago, while revenue slipped 23%.

Paper and paper products company International Paper
(
IP |
Quote |
Chart |
News |
PowerRating), +0.05% at 34.94, was upgraded by Prudential to “hold” from “sell” with
a new price target of $31.

Chip maker Semtech
(
SMTC |
Quote |
Chart |
News |
PowerRating), +9.20% at 13.40,
beat its earnings estimates with earnings of $0.11 per share, and has set its
guidance for the first-quarter at $0.11 per share, which is $0.01 ahead of
estimates.

Also in the Dow, software
giant Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), -2.43% at 23.60, was upgraded by Deutsche
Bank to “buy” from “hold.”

Jewelry retailer Tiffany & Co.
(
TIF |
Quote |
Chart |
News |
PowerRating), +6.37% at
23.71, is up over 12% in the pre-market after beating its fourth-quarter
earnings expectations by $0.60 per share. The company has issued 2003 guidance
in line with expectations.Â

Home builder Hovnanian
(
HOV |
Quote |
Chart |
News |
PowerRating), +0.24% at 33.01,
was upgraded by Salomon Smith Barney to “outperform” from “in-line.”

Retailer TJX Companies
(
TJX |
Quote |
Chart |
News |
PowerRating), -0.24% at 16.05,
missed its fourth-quarter earnings expectations by $0.01 with profits of $0.29
per share.

danielb@tradingmarkets.com

Will These Stocks Lead The Dow Down?

BUY THE FEAR, SELL THE GREED

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