Biggest This Year

February 21, 2002
Daniel Beighley

The major indexes took
different paths at the beginning of the day with the Dow trending higher, the
S&P 500 moving sideways, and the Nasdaq drifting lower, but the end result
was a sell-off, with all three averages sunk in the red. Oil-related issues,
gold and silver, and health care provided the day’s strength, with the
semiconductor index leading technology to the downside. The Nasdaq made its
biggest loss of the year.

This morning traders were
greeted with earnings warnings and downgrades, as well as a slew of economic
data that gave further reason to believe our economy is rebounding. The
Index of Leading Indicators was up 0.6% in January for its fourth
increase in a row. Also, the Federal Bank of Philadelphia reported that its
February Index of Manufacturing Activity rose to 16.0 from 14.7 in January after
13 months of negative activity. Initial Jobless Claims rose 10,000 for
the week to 383,000. Economists polled by Thompson Global Markets predicted
375,000 claims. The U.S. Trade Deficit narrowed to $25.3 billion in
December, making the first annual drop since 1995.

Overall
NYSE volume was 1,329,443,000.
NYSE advancing issues were 1,293,
with up-volume at 412,662,000;
declining issues were 1,840,
with down-volume at 903,416,000.
Overall Nasdaq volume was 1,805,561,000.
Nasdaq advancing issues were
1,187,
with up-volume at 385,926,000;
declining issues were 2,324 with
down-volume at 1,406,828,000.
The VIX
was up 1.46 to 25.72. The TRIN
was up 0.68 to 1.53.

Average volume on the session
saw the Dow move above, though close below its 50-day MA, the S&P 500 erase
all of yesterday’s gains, still well below its major moving averages, and the
Nasdaq close well below its major averages and under yesterday’s low. The Broker/Dealer
Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) closed down, with its high of the day falling just
short of its 200-day MA. However, it did manage to hold the ground it made
yesterday.

Broadcasting and cable company CIENA
Corporation
(
CIEN |
Quote |
Chart |
News |
PowerRating), down 12.41% to 7.62, reported a loss of 17 cents a
share compared to earnings of 19 cents a share a year ago, and less than
analysts’ expectations of a 19 to 22 cent loss. The company also said it expects
to earn between 60 and 70 cents a share for 2002, below analysts’ expectations
of $1 a share.

Electric utilities company AES Corporation
(
AES |
Quote |
Chart |
News |
PowerRating), down to 4.11,
benefited from positive comments from Standard and Poor’s, who claimed,
“the market’s response to recent events has been somewhat overblown.”
The company recently released plans to cut capital spending amidst liquidity
concerns.

Bookseller Barnes & Noble
(
BKS |
Quote |
Chart |
News |
PowerRating), up 5.54% to 30.83, announced
fourth quarter earnings were up 4.5%.

Department store retailer JC Penny
(
JCP |
Quote |
Chart |
News |
PowerRating), down 11.91% to 20.78, managed to pull in a profit after a losing
quarter this time last year, though warned that 2003 earnings appear to be lower
than expected.

Communications services company Bell South
(
BLS |
Quote |
Chart |
News |
PowerRating), down 6.50% to 37.82, warned that it expects to take in less revenue
for 2002 due to currency deregulations and a worsening economic situation in
Argentina and Venezuela.

Semiconductor company Kulicke & Soffa
(
KLIC |
Quote |
Chart |
News |
PowerRating), down 5.23% to 15.41, fell despite being upgraded by Merrill Lynch
to Buy from Neutral.

Biggest This Year

BUY THE FEAR, SELL THE GREED

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