A Sign Of Resilience

January 30, 2003
Daniel Beighley

The markets are negative
mid-day after early attempts to rally fizzled into selling pressure. Earnings
news was in abundance today, as reports from Dow components weighed in with
Boeing, Exxon Mobile, Dow Chemical and International Paper all inspiring sellers.
Boeing is showing resilience as it overcomes early losses and pushes into
positive territory mid-day, while leading the Dow gainers list.

In economic news, initial claims were for
397K vs. an expected 385K, GDP-Adv. came in at 0.7% vs. a consensus of
0.9%, the chain deflator-adv. was at 1.8% vs. an expected 1.4%, the
employment cost index rose 0.7% vs. an expected rise of 0.9%, and the
help wanted index came in at 39 vs. an expected reading of 40.Â

The 10-year U.S. Note
is -055 at 113 315.

The Dollar is +065 at
113 290.

Gold is +3.00 at 369.30.

Crude Oil is -0.05 at
33.58.

Volume is at 735,594,000
on the NYSE, and at 759,140,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 1.56, and down
volume over up volume by a 2.50 ratio. Nasdaq declining issues over advancing
issues are at 1.87, and down volume is over up volume by a 2.63 ratio.

Leading the Dow to the downside are:

Stocks In The News:

Entertainment giant America
Online
(
AOL |
Quote |
Chart |
News |
PowerRating), -13.47% at 12.08, announced a $98.7 billion loss in 2002
from its America Online and cable TV divisions. This is the largest loss in U.S.
history.

Paper and paper products maker
International Paper
(
IP |
Quote |
Chart |
News |
PowerRating), -0.91% at 35.75, announced earnings $0.06
ahead of expectations with profits of $0.33 per share. The company said it
expects a weak first quarter due to seasonal weakness, though it expects
business to pick up in the spring.

Tool maker Black & Decker
(
BDK |
Quote |
Chart |
News |
PowerRating), -1.76% at 36.74, beat its fourth-quarter earnings estimates by $0.03
with profits of $1.05 per share. The company also said it expects a weak first
quarter.

In the biotech sector,
Celgene
(
CELG |
Quote |
Chart |
News |
PowerRating), +1.18% at 22.12, missed its fourth-quarter estimates by
$0.10 with a loss of $0.11 per share.

Medical equipment and supplies
company Boston Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating), -3.67% at 39.36, has been downgraded
by Prudential to “hold” from “buy.”

Air carrier JetBlue
(
JBLU |
Quote |
Chart |
News |
PowerRating), +2.16% at 28.86, beat its fourth-quarter earnings estimates by
$0.02 with profits of $0.22 per share.

Chemical manufacturer Dow
Chemical
(
DOW |
Quote |
Chart |
News |
PowerRating), -2.41% at 28.40, posted a fourth-quarter loss of $0.18
per share. Analysts were looking for breakeven results.

In the pharmaceutical business,
Merck
(
MRK |
Quote |
Chart |
News |
PowerRating), -1.19% at 54.73, has been upgraded by Bank of America to
“buy” from “neutral.”

Oil company Exxon Mobile
(
XOM |
Quote |
Chart |
News |
PowerRating), -0.62% at 33.64, beat its fourth-quarter earningsÂ expectations by
$0.06 with profits of $0.56 per share.

Aerospace and defense company
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating), +1.27% at 31.00, reported profits in line with
expectations, though guided lower for full-years 2003 and 2004.

Video game software maker
Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating), +2.28% at 52.13, is lower in the pre-market
after the company lowered its earnings guidance and filed with the SEC to sell
$2 billion in stocks.

Personal product maker
Gillette
(
G |
Quote |
Chart |
News |
PowerRating), -3.22% at 29.13, missed its fourth-quarter estimates by
$0.02 with profits of $0.32 per share.

Auto retailer Autozone
(
AZO |
Quote |
Chart |
News |
PowerRating), +5.54% at 64.59, has been upgraded by Lehman Brothers to “overweight”
after the company raised its guidance.

danielb@tradingmarkets.com

A Sign Of Resilience

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources