Will Today’s Data Take Us To Further Highs?

May 29, 2003
Vincent Mao

Stocks
are again higher this midday. In what could be the sixth straight day
of gains for the equity markets, stock are off on a good start after some
positive economic data. The economy grew faster than expected and first-time
jobless claims fell. Stocks are continuing to make headway into multi-month
highs; the S&P is closing in on its August 22, 2002 high of 965 while the
Dow is 140 points away from the 9,000 level. Despite a warning from Tech Data
(
TECD |
Quote |
Chart |
News |
PowerRating),
tech stocks are leading the charge today with semiconductors on top. Bonds are
higher today after a two-day pullback. The dollar is once again lower.

In economic news, First-quarter
GDP was upwardly revised to +1.9 from +1.6%. This topped estimates for a
revision to 1.8%. Weekly jobless claims fell by 9,000 to 424,000. This was still
higher than expectations of 420,000. However the more closely watch four-week
moving average fell to a six week low of 427,000.

The 10-year U.S. Note
is +140 at 118 290

The dollar is -61 at
92.97

Gold is +1.20 at 364.00

Crude Oil +0.62 at
29.20

Volume is heavy at
761,000,000 on the NYSE, and at 1,150,000,000 on the Nasdaq.

Market breadth is
positive, with NYSE advancing issues over declining issues by a ratio of
1.72, and up volume over down volume by a 2.45 ratio. Nasdaq advancing issues
over declining issues at 1.72, and up volume over down volume is at a 3.58
ratio.

Top Dow stocks are:

Stocks in the news:

Retailer Dollar General
(
DG |
Quote |
Chart |
News |
PowerRating) is higher by 8.9% on heavy volume after the company reported better-than-expected
results. The company reported first-quarter earnings of 18 cents a share
compared to 15 cents a share during the same period a year ago. The results also
surpassed estimates by 2 cents. Looking forward, the company sees earnings
growth between 11 to 15% for fiscal 2003.

Ultimate Electronics
(
ULTE |
Quote |
Chart |
News |
PowerRating)
is trading higher by 9% on very heavy volume. The company reported a first-quarter
loss of 10 cents a share compared with a loss of 3 cents a share for the same
period a year ago. The results did top estimates calling for a loss of 13 cents
a share.

Celgene
(
CELG |
Quote |
Chart |
News |
PowerRating) is
off 3.4% on double its average volume. The company placed a private placement of
$325 worth of convertible notes. The 1.75% notes have a conversion price of
$48.45 and will mature in 2008.

Scholastics
(
SCHL |
Quote |
Chart |
News |
PowerRating)
is lower by 4% on heavy volume. The company announced plans to cut 400 jobs or
approximately 4% of its workforce. Scholastics blamed the job cuts on the
"challenging industry and general economic conditions".

The maker of the popular video
game series "Grand Theft Auto," Take Two Interactive
(
TTWO |
Quote |
Chart |
News |
PowerRating)
is off by 4.4% on triple its average volume. The company reported second-quarter
results of 36 cents a share compared to 25 cents a share a year ago. The company
also topped estimates by a penny.

Tech Data
(
TECD |
Quote |
Chart |
News |
PowerRating) is
off 5.5% on very heavy volume. The company reported first-quarter results of 38
cents a share compared to 60 cents a share for the same period a year ago. The
results were also 2 cents shy of analysts’ estimates. Looking into next quarter,
the company forecast results of 34 to 38 cents a share or below estimates of 41
cents a share.

Vincent Mao

Will Today’s Data Take Us To Further Highs?

BUY THE FEAR, SELL THE GREED

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