Leading Sector At Key Levels

November 20, 2002
Daniel Beighley

Buyers
threw a party today, as price action on the major indexes pushed
higher for most of the session, with some selling pressure coming in for the
last hour. Semis were best bid, as the sector now flirts with an inverted
head-and-shoulders, though volume for the day was average. Without volume, moves
through significant technical levels have less sustainability. This leading
sector will be key to watch around current levels.

In economic news, building
permits for October came in at 1.763 million vs. a 1.700 million forecast,
and housing starts came in at 1.603 million vs. 1.710 million forecasted.

The 10-year U.S. Note
was -260 at 113 105.

The Dollar was +0.25 at
106.05.

Volume was slightly above
averageÂ at 1,476,392,000 on the
NYSE, and 1,756,331,000
on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 2.25, and up
volume over down volume by a 3.01 ratio. Nasdaq advancing issues over declining
issues came in at 2.16, and up volume beat down volume by a 6.24 ratio.

The

VIX was -2.57 at 28.79. The

TRIN was -0.51 at 0.73.

Leading the Dow higher, JP
Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating) rose after it was announced the company had no credit
liability in the National Century Financial Enterprises bankruptcy.Â

Stocks in
the news:

In the department store
retailing business, Saks Inc.
(
SKS |
Quote |
Chart |
News |
PowerRating), +12.74% at 12.30, surprised
analysts when it announced a profit for the quarter, reversing from a loss a
year ago. Also, Nordstrom
(
JWN |
Quote |
Chart |
News |
PowerRating), +5.69% at 20.22, lowered its
earnings forecast for the full year to $1.15 to $1.19 per share vs. previous
estimates of $1.24.

Biotech firm Biogen
(
BGEN |
Quote |
Chart |
News |
PowerRating),
+9.79% at 43.48, was upgraded by Lehman Brothers to “outperform” from
“equal-weight.”

Children’s clothing retailer
Gymboree
(
GYMB |
Quote |
Chart |
News |
PowerRating), -1.34% at 19.00, was downgraded by Piper Jaffray to
“outperform” from “strong buy” despite beating its third-quarter earnings by
$0.02 .

Grocery retailer Whole Foods
(
WFMI |
Quote |
Chart |
News |
PowerRating) beat its fourth-quarter earnings by $0.02 with profits of $0.36 per
share.

Office supplier
International Paper
(
IP |
Quote |
Chart |
News |
PowerRating), +6.39% at 50.55, moved higher after CIBC World
Markets upgraded the stock to “sector perform” from “sector under perform.”

Business services company
Accenture
(
ACN |
Quote |
Chart |
News |
PowerRating), -1.28% at 18.50, had coverage initiates by Prudential
at “hold” with a price target of $17.

Utility company El Paso
Energy
(
EP |
Quote |
Chart |
News |
PowerRating), +1.94% at 10.47, sold off after the New York Times
reported that the company entered into a questionable trade with one of its Wall
Street banks to avoid restating its first-quarter earnings.

Advertising company The
Interpublic Group
(
IPG |
Quote |
Chart |
News |
PowerRating), -1.68% at 13.97, said that the SEC requested
information from the company pertaining to its earnings restatement. The company
also said its accounting problems were broader than originally believed.

In the airline sector, Delta
Airlines
(
DAL |
Quote |
Chart |
News |
PowerRating), -6.08% at 10.49, announced it was going to start a
discount carrier.

Leading Sector At Key Levels

BUY THE FEAR, SELL THE GREED

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