Many Traders Are Not Holding Overnight…Here’s Why

April 2, 2003
Daniel Beighley

Buyers
were in force today as positive news on the Coalition’s progress in
Iraq gave sentiment a lift. Price action gapped higher, then moved further north
throughout the session, with modest selling pressure going into the close.
Disappointing factory orders had no effect on on the markets, while slightly
above-average volume added to convincingly positive market breadth. Technology
was the strongest area of the day with the market-leading semiconductors topping
off the advancers’ lists. As American troops make their way toward Baghdad, the
markets remain ever-vulnerable to the news. This news-sensitive environment has
been reason enough to keep many traders from taking home positions overnight.

In economic news, factory
orders were down 1.5% vs. expectations of a decline of 0.7%.

The Ten Year NoteÂ was
-245 at 114 030.

The US dollar was +0.97
at 100.55.

Volume was slightly
above average, with the NYSE coming in at 1,553,792,000 and the Nasdaq at
1,626,439,000.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 2.59, and up
volume over down volume by a 6.59 ratio. Nasdaq advancing issues over declining
issues came in at 2.43, and up volume beat down volume by a 5.06 ratio.

The

VIX was -0.81 at 31.29. The

TRIN was -0.51 at 0.39.

Biggest Dow advancers were:

Stocks in the news:

Tool maker Black & Decker

(
BDK |
Quote |
Chart |
News |
PowerRating), +4.85% at 36.91, rallied despite announcing it believes
first-quarter revenue will be below expectations, though said earnings may be on
target or beat due to strong operating margins from restructuring.

Electronics retailer Circuit
City
(
CC |
Quote |
Chart |
News |
PowerRating), +2.52% at 5.27, rallied after meeting its fourth-quarter
earnings expectations, though earnings were down 43% from a year ago.

Transportation company
Expeditors International
(
EXPD |
Quote |
Chart |
News |
PowerRating), +0.28% at 35.65, was downgraded by
CSFB to “neutral” from “outperform”.

Electric utilities company
American Electric
(
AEP |
Quote |
Chart |
News |
PowerRating), -1.62% at 23.00, received a subpoena from the
SEC as energy traders continue to be under investigation.

Medical equipment and supplies
company Immucor
(
BLUD |
Quote |
Chart |
News |
PowerRating), +6.19% at 22.66, beat its third-quarter
earnings by $0.02 with profits of $0.28 per share. The company sees 2003
earnings coming in between $1.03 and $1.08 vs. a consensus of $1.02.

Dow stock and communications
services company AT&T Corp.
(
T |
Quote |
Chart |
News |
PowerRating), -2.99% at 15.89, was downgraded by
Goldman Sachs to “in-line” from “outperform”.

Also in the Dow, drug maker
Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), +0.19% at 58.53, was downgraded by Morgan
Stanley to “equal-weight” from “overweight”.

Biotech firm Biogen
(
BGEN |
Quote |
Chart |
News |
PowerRating),
+12.21% at 33.99, raised its first-quarter earnings guidance to $0.47-0.51 per
share vs. a consensus of $0.37 per share.

Also in the biotech sector,
Â Invitrogen
(
IVGN |
Quote |
Chart |
News |
PowerRating), +0.58% at 30.75, had coverage initiated on it by
Morgan Stanley at “underweight”.

Also in the biotech biz,
Biomet
(
BMET |
Quote |
Chart |
News |
PowerRating), -1.64% at 30.49, was downgraded by Merrill Lynch to
“neutral” from “buy”.

Video retailer Hollywood
Entertainment
(
HLYW |
Quote |
Chart |
News |
PowerRating), +5.21% at 16.75,Â raised its first-quarter
earnings guidance based on strong same store sales.

Restaurant company PF
Chang’s
(
PFCB |
Quote |
Chart |
News |
PowerRating), +7.88% at 39.53, announced that they expect to meet or
exceed its earnings consensus based on strong volume from new restaurants.

danielb@tradingmarkets.com

Many Traders Are Not Holding Overnight…Here’s Why

BUY THE FEAR, SELL THE GREED

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