Here’s Where The Strength Is In Today’s Market

May 27, 2003
Vincent Mao

Stocks
are sharply higher this midday. The major indices are starting off
this shortened trading week on a very positive note. After some early morning
weakness brought on by weakness in the dollar, stocks staged a strong turnaround
this Tuesday after some favorable economic reports. Consumer confidence rose to
a five-month high and thanks to record low interest rates, the housing sector is
still red hot. Nearly every sector with the exception of gold and REITs are in
the green. Biotechs, Internets, and semiconductors are leading the way. After a
three-week run, bonds are not moving in lockstep with stocks today. And once
again the dollar is weaker as it traded at 1.1926 against the euro.

In economic news, Consumer
Confidence for May, jumped to a five-month high reading ofÂ 83.8 from
April’s 81.0. However, this was below estimates of 84.0. New home sales in
April increased by 1.7% to an annual rate of 1028K. This bested estimates of
985K. Existing home sales in April jumped 5.6% to an annual rate of 5.84
million, topping estimates of 5.70M.Â Â

The 10-year U.S. Note
is -90 at 118 170

The dollar is -0.38 at
92.75

Gold is -1.30 at 367.50

Crude OilÂ -0.68 at 28.60

Volume is at 791,000,000
on the NYSE, and at 1,008,000,000 on the Nasdaq.

Market breadth is veryÂ
positive, with NYSE advancing issues over declining issues by a ratio of
2.33, and up volume over down volume by a 3.58 ratio. Nasdaq advancing issues
over declining issues at 2.22, and up volume over down volume is at a 10.17
ratio.

Top Dow stocks are:

Stocks in the news:

AOL Time Warner
(
AOL |
Quote |
Chart |
News |
PowerRating)
is trading at a new three-month high. The New York Times reported that
Stephen Case wants to spin off the Internet unit from the media giant. However a
spokesperson for AOL denied such plans. Â Â

Dow component Boeing
(
BA |
Quote |
Chart |
News |
PowerRating)
is fractionally lower. The aerospace and defense giant reached a $16 deal with
the Pentagon for the use of one hundred 767 planes.Â Â

MGM Mirage
(
MGG |
Quote |
Chart |
News |
PowerRating) is
higher by 3% on heavy volume. The resort and casino operator agreed to pay $5
million to the Nevada Gaming Control Board for failing to file a a proper
paperwork for cash transactions.

Altria Group
(
MO |
Quote |
Chart |
News |
PowerRating) is
down fractionally on heavy volume. UBS Warburg downgraded the stock to “neutral”
from “buy” after its recent 20+% rally. Tobacco shares had been strong recently
after a Florida judge threw out a $145 billion suit against the companies.Â

Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating) is
higher by 2% after Morgan Stanley reiterated their “overweight” rating on the
company. Morgan based its view on Honeywell’s attractive valuation.

vincentm@tradingmarkets.com

Here’s Where The Strength Is In Today’s Market

BUY THE FEAR, SELL THE GREED

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