Anatomy Of A Pause

The markets trended down on
light volume today, with all three major indexes closing in the red. The were no
sectors to close positive today, with the heaviest selling of the day in the
biotech sector.

The
Dow Jones Industrial Average

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closed down
1.27%
to
9,921.45.
The S&P 500
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closed down
1.58%
to
1,139.99.
The Nasdaq
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closed down
1.44%
to
1,992.12.

The markets remained weak today with no economic
reports scheduled for release. The financial community remained focused on the
Federal Reserve meeting where the Fed Funds pit at the Chicago Board of Trade
has given a 25-basis-point cut a 90% chance of happening. This would be the 11th
cut in 12 months.

Overall,
NYSE volume was
1,177,481,000.
NYSE advancing issues were
967,
with up-volume at
260,137,000;
declining issues were
2,156,
with down-volume at
908,700,000.
Nasdaq volume was
1,658,926,000.
Nasdaq advancing issues were
1,346,
with up-volume at
453,401,000;
declining issues were
2,307 with
down-volume at
2,307.
The VIX
was up 1.11 to 26.00. The TRIN
was up 0.33  to 1.56. Below-average volume today kept the markets below
psychologically relevant numbers. The Dow finished below 10,000, and the Nasdaq
below 2,000.

The
sectors with the largest losses of the day were Biotechnology

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, down 4.26% at 575.45,
and the Networking Index
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, down 3.15% to 352.64.

Hewlett-Packard’s
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largest
shareholder, the David and Lucile Packard Foundation, which owns 10% of shares,
announced it will veto the proposed merger with Compaq Computer
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.
HWP finished down 2.38% to 22.96, and Compaq joined it, down 6.80% to 10.55.

The world’s largest auto parts supplier Delphi
Automotive Systems Corp.

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announced it expects earnings to
be up 25% next year as it cuts more jobs and sells off businesses. DPH
finished down 5.38% at 13.39.

Still working its way through financial disaster,
Enron’s
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trading operations have been bid for by Citigroup
[C] and UBS Warburg. ENE closed up 20.00% to 0.90, and C finished
the day down 2.60% to 47.93.

The No. 1 U.S. local
telephone company, Verizon Communications
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rose
1.02%
to
48.35 after
stating it agreed to sell TSI Telecommunications Services Inc. for around $800
million in cash to GTCR Gold Rauner LLC.

Fiber-optic
networking company JDS Uniphase
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, down
5.41%
to 9.96,
warned
that fiscal third quarter sales would be less than expected and cited only a
moderate increase in demand for next quarter.

Oil service and equipment company Halliburton
Company

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, up 18.33% at 14.20, made up for Friday’s steep decline
when it announced its insurance company will pay for asbestos claims.

Communication Services company AT&T
Corporation

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, down 4.41% to 16.90, announced that no
decision has been reached as far as a potential buyer for its broadband unit.