A Clearer Picture Tomorrow?

  • October 31, 2001
  • Daniel Beighley

The
markets shot higher off the bell on a better-than-expected GDP report,
then drifted lower to where the S&P 500 and Nasdaq filled their gaps, before
making another rally that stalled out during the last hour of trading.
Technology led the action while the Blue Chips lagged.   

The
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) dipped 0.51%,
closing at 9,075.14. The
S&P 500
(
SPX.X |
Quote |
Chart |
News |
PowerRating) closed up 0.07%
at 1,060.57. The Nasdaq
(
COMPQ.X |
Quote |
Chart |
News |
PowerRating)
rose 1.37% to close at 1,690.21.

The
US Commerce Department reported
the first negative GDP number since 1994, though it wasn’t as terrible as the
financial community had feared. The economy shrank .4%, compared the widely
expected .8%. 
Many question the relevance of the report, as the third quarter ended a month
ago and the economy was virtually stalled after Sept. 11. NAPM numbers to be
released tomorrow and employment data to be released Friday will help give a
clearer picture. With the recent crack in consumer confidence exposed yesterday,
much fear circulates in the markets.

NYSE
advancing issues were 1,907,
with up-volume at 537,047,808;
declining issues were 1,132,
with down-volume at 323,440,480.
Nasdaq advancing issues were 2,034,
with up-volume at 981,539,904;
declining issues were 1,422
with down- volume at 273,517,504.
The VIX
was up 0.13  to 32.28. The TRIN
fell .63 to 1.51. Overall volume on the day was
average with up-volume clearly dominating down-volume. Only the Nasdaq was able
to close above its 50-day moving average, while the S&P 500 barely closed
positive, and the Dow took another step down.

Top
sectors of the day were the Semiconductor Sector Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
gaining 4.27% at 448.02, and
the Morgan Stanley Internet Idx
(
$MOX.X |
Quote |
Chart |
News |
PowerRating)
up 2.98% at 11.06.

Losing
sectors of the day were the Japan Index [$JPN.X|$JPN.X]
down 1.26%
at 110.38 and the North
American Telecoms Index
(
$XTC.X |
Quote |
Chart |
News |
PowerRating)
down 1.16%  at 759.28.

Long-distance
telecommunications carrier Qwest
Communications
(
Q |
Quote |
Chart |
News |
PowerRating) shrank 18.88% to
12.98 after posting
a third quarter loss of 9 cents a share, compared to a loss 15 cents a year ago.
Analysts were expecting a loss of 3 cents a share. The carrier reported that a
decrease in network capacity sales had hurt revenue.

Food
and consumer goods company
Sara Lee
(
SLE |
Quote |
Chart |
News |
PowerRating),
up
0.68%
at 22.29, reported first quarter earnings of 30 cents a share, compared to 29
cents a year ago. Analysts were expecting earning between 25 and 26 cents a
share.

Comcast
(
CMCSK |
Quote |
Chart |
News |
PowerRating)
is up
1.16%
at 35.84.
The # 3 cable
operator reported an increase of  16.6 % in cash flow with an increase of
20% on revenue. The company is currently bidding AT&T’s
(
T |
Quote |
Chart |
News |
PowerRating) cable assets. 

Continental
Airlines
(
CAL |
Quote |
Chart |
News |
PowerRating) rose 5.11%
to 17.50. The airline company reported a third quarter loss of $1.76 a share,
compared to a profit of $2.21 a year ago. Analysts were looking for a loss of
$2.25 a share.

Sun
Microsystems  
(
SUNW |
Quote |
Chart |
News |
PowerRating)

shot up 6.60%
to 10.17, on news of an increase in orders compared to this time last year.

Software
company Adobe
Systems
 
(
ADBE |
Quote |
Chart |
News |
PowerRating)

tumbled 
8.17% to 26.40,
lowering fourth quarter estimates and announcing that it would release 5% of its
workforce.

Online
credit provider NextCard

(
NXCD |
Quote |
Chart |
News |
PowerRating)

plunged 82.99% to
0.91, reporting third quarter losses of $1 a share and lowering expectations for
the next two quarters. The company is currently looking to be bought.