Here’s What’s Moving The Market

October 13, 2003
Vincent Mao

Stocks are
higher this midday. The major indices
are starting off the week on a very positive note as optimism about
third-quarter earnings has investors in a buying mood. A favorable Barron’s
article on Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating), Lehman’s upgrade on infrastructure software
issues, and better-than-expected results from Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) propelled the
major indices to new highs. Honeywell CEO Dave Anderson told Barron’s
“The company represents a very attractive investment over the next several years
because we are, I believe, at a the bottom of the downturn. If we aren’t
absolutely there, we are near.” Lehman Brothers upgraded the infrastructure and
systems management software group from “Neutral” to “Positive” as they believe
that the group is poised for a strong fourth quarter.

All three major indices are
slightly off near session highs. Bonds are closed today for the Columbus Day
holiday.

No economic releases until
Wednesday.

Gold is -0.80 at 373.30.

Crude Oil is +0.07 at
31.90.

Volume is 558,000,000 on
the NYSE, and 872,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 2.75 and up over down volume
by 2.33; Nasdaq advancing issues over declining issues at 2.22, and up volume
over down volume at 2.44.

Top Dow stocks are:

Stocks in the news:

Dow Component Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating) is higher by more than 5% after the company was the subject of a
positive Barron’s article. The article suggested that the diversified
controls company could be poised for recovery. Separately the company announced
on Friday that it would acquire Canada’s Silent Witness Enterprises for $8.53 a
share in an all cash deal.

Casino game maker
International Gaming Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) is higher by 6.7% after the
company received a large order from Harrah’s Entertainment
(
HET |
Quote |
Chart |
News |
PowerRating). The order
calls for 11,000 gaming machines and it is one of the company’s largest single
orders in history. IGT is also on track to sell 60,000 to 65,000 gaming machines
for fiscal 2004.

The world’s second-largest cell
phone maker, Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating), is trading higher by 1.2% after the
company reported better-than-expected third-quarter results. Due to strong
demand for the company’s cell phones, Motorola reported earnings excluding
charges of a nickel a share, compared to consensus estimates of 3 cents a share.
Revenues rose 5% to $6.83 billion. Looking ahead, the company sees
fourth-quarter results between 11 to 15 cents a share, with current estimates
calling for 12 cents a share.

Sporting goods retailer
Sports Authority
(
TSA |
Quote |
Chart |
News |
PowerRating) is higher by 7.8% after the company raised its
third-quarter guidance. Due to stronger-than-expected sales, the company now
sees third-quarter results triple its prior forecast. The nation’s top sporting
goods chain now sees earnings of 13 to 15 cents a share, compared to consensus
estimates of 13 to 15 cents a share.

Internet Auctioneer eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating) is lower by 3.8% after Smith Barney downgraded the company from
“Hold” to “Sell”. Smith Barney based the downgrade on the slowing growth of
eBay’s eBay Motors unit. eBay Motors has accounted for 35% to 40% of revenues in
the last two years, but since then, motor sales only account for 28%. The firm
also cut eBay’s price target from $55 to $48.

If you have any comments or
questions, please feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

Here’s What’s Moving The Market

BUY THE FEAR, SELL THE GREED

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