Areas Of Strength
The
major indexes drifted down today, though after 2:00 p.m. ET buyers
entered the market to fuel a mild rally into the close. Airline, utilities and
transportation stocks were areas of strength, while the semiconductor and
software indexes were hit hardest. The oil sector managed to pull out a strong
rally despite weakness early in the day.
The
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed down 0.49%
to 10,049.46. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed down 0.78%
to 1,157.96.
The Nasdaq
(
$COMPQ.X |
Quote |
Chart |
News |
PowerRating) closed down 1.62%
to 2,020.98.
Market breadth finished
slightly negative with Nasdaq down volume outpacing up volume by over 2:1.
Despite upbeat comments from the tech sector and
an encouraging report on sentiment, the market’s mood stayed negative on the
heels of disappointing employment data.
The Labor Department reported
that the U.S. economy lost 331,000 jobs for the month of November, far off the
189,000 anticipated. This year’s months of October and November have been the
worst for job losses since May and June of 1980.
The University of Michigan’s
consumer sentiment index came in at 85.8, making three straight months of
increased positive sentiment for our economy. The consensus estimates forecasted
a level of 84.1. The markets appeared to be more concerned with the negative
employment data.
Overall
NYSE volume was 1,228,459,000.
NYSE advancing issues were 1,404,
with up volume at 493,094,000;
declining issues were 1,683,
with down volume at 717,682,000.
Overall Nasdaq volume was 1,906,456,000.
Nasdaq advancing issues were 1,750,
with up volume at 512,975,000;
declining issues were 1,884 with
down volume at 1,368,731,000.
The VIX
was djown 0.21 to 24.89. The TRIN
was up 0.13 to 1.21. Volume on the day was slightly below average, with the Dow
and the S&P 500 turning down from their 200-day moving average. and the
Nasdaq closing above this mark for the week.
Top
sectors of the day were the Airline
Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), up 3.77% at 91.30,
and the Utility Sector
Index
(
$UTY.X |
Quote |
Chart |
News |
PowerRating), up 1.65% at 318.07.
Losing
sectors of the day were the Forest
& Paper Index
(
$FPP.X |
Quote |
Chart |
News |
PowerRating)
down 2.74% at 331.28
and the Amex Internet Index
(
$IIX.X |
Quote |
Chart |
News |
PowerRating) down 3.53% to 152.17.
Lockheed
Martin Corp.Â
(
LMT |
Quote |
Chart |
News |
PowerRating), down 1.41%
to 45.55, announced that
it would quit the telecommunications business because of overcapacity in the
sector and unfavorable business conditions in Latin America. The company will
take a $1.7 billion charge for the move.
 Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), down 2.69% to 33.24,
raised its sales forecasts for the fourth quarter to between $6.7 billion and
$6.9 billion from $2.6 billion and $6.8 billion.
Advanced
Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating), up 9.85%
to 17.85,
announced fourth quarter sales will surpass third quarter sales by 10 percent.
Sun
Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating), down 5.58%
to 13.36, said
that business was stabilizing and would meet fourth quarter expectations
Media giant
AOL Time Warner Inc.
(
AOL |
Quote |
Chart |
News |
PowerRating),
down 5.18% to 32.95
fell after Merrill Lynch cut its revenue and cash flow estimates. CEO Gerald
Levin’s retirement and the company’s interest in AT&T were cited as the
reasons for the downgrade.
Oil field
services and engineering giant Halliburton Co.
(
HAL |
Quote |
Chart |
News |
PowerRating), down 41.97%
to 12.10, fell after it
was made clear that the company was liable for over $150 million for mounting
asbestos problems.
Movie
theater company AMC Entertainment Inc.
(
AEN |
Quote |
Chart |
News |
PowerRating), down 1.00%
to 13.91, announced it
will acquire competitor GC Companies Inc. in bankruptcy agreement. AMC
Entertainment will pay GC Company’s creditors between $175 million and $195
million in cash, and AMC subordinated notes and common stock.