Here’s Why You Shouldn’t Get Too Excited
The
markets are nicely higher mid-day as we kick off the year 2003. A
better-than-expected number from the Institute of Supply Management, coupled
with good news from Dow component JP Morgan, has put buyers on the prowl, with
the major indexes making an effort to recapture their 50-day moving averages.
Despite the good cheer, volume remains on the light side.
Dow Jones Industrial Average
(
$INDU.X |
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PowerRating) is +2.59% at 8,558.02 The S&P 500
(
$SPX.X |
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PowerRating) is
+2.61% at 902.76. The Nasdaq
(
$COMPQ |
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PowerRating) is +2.89% at 1,374.04.
Leading to the upside are
networking
(
$NWX.X |
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PowerRating), +6.45%, semiconductors
(
$SOX.X |
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+5.34%, and telecoms
(
$XTC.X |
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PowerRating), +4.93%.
The only losing sector is
gold and silver
(
$XAU.X |
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PowerRating), -1.15%.
In economic news, the ISM
said that its index rose to 54.7% for December vs. a reading or 49.2 in
November. A number over 50 indicates expansion. Also, initial jobless claims
came in at 403K vs. expectations of 382K.
The 10-year U.S. Note
is -1 205 at 113 130.
The Dollar is +1.22 at
103.48.
Gold is -3.20 at 345.00.
Crude Oil is +0.45 atÂ
31.04.
Volume is at 588,053,000
on the NYSE, and 683,127,000 on the Nasdaq.
Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 3.13, and up
volume over down volume by a 11.72 ratio. Nasdaq advancing issues over declining
issues are at 1.96, and up volume over down volume is at a 9.80 ratio.
Leading the Dow lower are:
Intel Corp.
(
INTC |
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PowerRating),
+6.29% at 15.55, Hewlett Packard
(
HPQ |
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PowerRating), +5.99% at 18.40, SBC
Communications
(
SBC |
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PowerRating), +5.27% at 28.54, JP Morgan Chase
(
JPM |
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PowerRating),
+5.20% at 25.25, Walt Disney
(
DIS |
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PowerRating), +4.84% at 17.10, and General
Motors
(
GM |
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PowerRating), +4.36% at 38.47.
Stocks in the news:
Investment bank JP Morgan
(
JPM |
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PowerRating), +5.37% at 25.29, announced that it has settled with 10 of 11
insurance companies related to Enron, who will pay 60% of the amount of the
surety contracts.Â
Networking company Cisco
Systems
(
CSCO |
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PowerRating), +3.12% at 13.51 has had its earnings estimates cut by
UBS Warburg due to a weaker-than-expected US market. The firm maintains its
“hold” rating with a price target of $14.50.Â
Drug stocks are in the news
today as Abbott Labs
(
ABT |
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PowerRating), +0.27% at 40.11 has received FDA approval
for its rheumatoid arthritis drug Humira. Keep an eye on Amgen
(
AMGN |
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PowerRating),
+0.76% at 48.71, as it may sell-off due to new competition.
Merck
(
MRK |
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PowerRating), +2.95%
at 58.28, has received FDA approval for its hayfever drug Singulair.
Bristol Myers
(
BMY |
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PowerRating),
+2.80% at 23.80, is being reported by the New York Times as an ideal
candidate for a takeover.
Conglomerate General
Electric
(
GE |
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PowerRating), +3.32% at 25.16, will be facing its first strike in 30
years, which will hinder production in US plants. Workers are reacting to a $200
increase in payments towards the company’s managed healthcare plan.
From TM’s Momentum List,
computer peripheral company Avocent
(
AVCT |
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PowerRating), +5.67% at 23.48, and
data storage company SanDisk
(
SNDK |
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PowerRating), +5.27% at 21.37.