Why Buyers Are Gobbling…

November 27, 2002
Daniel Beighley

Buyers
were gobbling up shares today, as better-than-expected economic data
helped bolster the Dow and S&P 500 to three-month highs, and the Nasdaq to a
five-month high. Price action gapped up off the open, and pushed higher
throughout the entire session. Technology once again provided leadership.

The day’s only loser was
gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), -0.56%.

In economic news, there were
three key upside surprises: Durable orders were up 2.8% vs. an expected
1.8% rise; Chicago PMI came in at 54.3 vs. an expected 48.5; and
initial jobless claims were for 364,000 vs. an expected 383,000.

Also, Michigan sentiment
came in at 84.2 vs. an expected 85.0; personal income rose 0.1% vs. as
expected; and personal spending came in at 0.4% vs. an expected 0.3%.

The 10-year U.S. Note
was – 1 090 at 112 055.

The Dollar was +0.24 at
106.89.

Volume was slightly below
averageÂ at 1,306,467,000 on the
NYSE, and 1,726,884,000
on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 3.80, and up
volume over down volume by a 6.74 ratio. Nasdaq advancing issues over declining
issues came in at 2.97, and up volume beat down volume by a 9.60 ratio.

The

VIX was +2.10 at 30.84. The

TRIN was +1.77 at 0.56.

Leading the Dow higher were:

Stocks in the news:

Insurer Cigna
(
CI |
Quote |
Chart |
News |
PowerRating),
+4.98% at 42.54, rallied after the company agreed to settle a class action suit
involving thousands of physicians over the way the company cuts bills to pay
them less.

Natural gas and utilities
company El Paso
(
EP |
Quote |
Chart |
News |
PowerRating), -0.92% at 8.55, was downgraded by CIBC World
Markets. Yesterday the company had its credit rating cut by Moody’s Investor
Service.

In the chip sector, Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating), +8.55% at 37.43, announced that it is on track to meet its
fourth-quarter earnings targets.

In the biotechnology sector,
Trankaryotic Therapies
(
TKTX |
Quote |
Chart |
News |
PowerRating), -32.67% at 9.60, fell after it posted
disappointing results form a Phase III study for its drug Replagal, used for
enzyme replacement therapy.

Grocery retailer Whole Foods
(
WFMI |
Quote |
Chart |
News |
PowerRating), +5.03% at 53.57, was downgraded by UBS Warburg to “hold” from
“buy”.

Financial services company
H&R Block
(
HRB |
Quote |
Chart |
News |
PowerRating), -0.44% at 38.33, beat its earnings expectations by
$0.01 with profits of $0.05 per share.

Arts and crafts retailer
Michaels Stores
(
MIK |
Quote |
Chart |
News |
PowerRating), +10.83% at 38.61, beat its third-quarter earnings
expectations by $0.06 with profits of $0.46 per share.

Why Buyers Are Gobbling…

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources