Are The Markets Telling You Something?

November 2, 2001
Daniel Beighley

The
markets were mixed on top of employment data as the major indexes
traded lower off the bell, then pushed higher to where the Dow and S&P 500
made slight gains and the Nasdaq fell short for the day. The Dow Utilities made
another 52-week low and the overall sector action was mixed.

The key number on the day
was the unemployment
rate. Analysts were looking for the U.S. economy to clock in a rate ofÂ
4.9% (or loss of 250,000 jobs) compared to the actual 5.4% and loss of 413,000
jobs. This non-farm payrolls data is the worst since May, 1980, and is the first
set of statistics to fully reflect the impact of the Sept. 11 attacks. Though
more evidence mounts to suggest the economy is going downhill, the markets have
held ground. Next week the Federal Reserve Board will meet for another widely
expected half-point interest rate cut.

NYSE
advancing issues were 1,572,
with up-volume at 581,828,000;
declining issues were 1,511,
with down-volume at 507,633,000.
Nasdaq advancing issues were 1,624,
with up-volume at 761,276,000;
declining issues were 1,930 with
down- volume at 839,075,000. The
VIX
was down 1.78 to 32.40. The TRIN
was up 0.05Â to 0.90. Overall volume on the day was below average, with the
Dow and the S&P 500 remaining in zones of recent congestion and the Nasdaq
better positioned to test resistance.

Health
Insurer Cigna

(
CI |
Quote |
Chart |
News |
PowerRating) climbed
11.70%
to 79.99, reporting earnings of $1.83 a share compared to
analysts’ estimates of $1.50 to $1.66 a share. The company claimed its earnings
suffered due to rising medical costs.

Energy
trader
Enron Corp
(
ENE |
Quote |
Chart |
News |
PowerRating)
fell
6.17% to 11.25,
earning a $1 billion credit line even though its credit rating
was cut twice this week.

Computer
services supplier
Computer Sciences Corp
(
CSC |
Quote |
Chart |
News |
PowerRating)
jumped
18.18%
to 40.11, beating third quarter estimates with earnings of $1.81
a share, compared to $1.74 a year ago. The company said earnings were higher
because of its 3.7 million share buyback.

The maker of patches that
deliver drugs transcutaneously, Noven Pharmaceuticals Â
(
NOVN |
Quote |
Chart |
News |
PowerRating)

plummeted 31.69% to 15.20,
after reporting earnings of 10 cents a share compared to 15 cents this time last
year. The company expects earnings to be in line with the predicted 10 to 12
cents.

Internet
travel retailer
Priceline

(
PCLN |
Quote |
Chart |
News |
PowerRating)
moved higher 3.41%
to 4.55 after it announced a profit of 3 cents a share, after a one-time cost.
The company claimed travel orders have started to pick up and they were in line
with fourth quarter expectations.

Application
software maker BEA Systems Â
(
BEAS |
Quote |
Chart |
News |
PowerRating) up 7.69%
to 12.60 was down after it warned its third quarter earnings would be at the low
end of expectations and lowered its guidance for the fourth quarter.

Are The Markets Telling You Something?

BUY THE FEAR, SELL THE GREED

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