Bulls Are Breathing Easier

November 14, 2001
Daniel Beighley

The major averages
gapped open today,
filled the gaps within two hours, spent most of the day in a narrow range, then
rallied into the close for small gains. Blue chips represented the strength of
the day, while technology cooled.

style=”mso-bidi-font-size: 10.0pt”>The Dow Jones Industrial Average

(
INDU.X |
Quote |
Chart |
News |
PowerRating) closed up 0.75%
to 9,823.61. The S&P
500 [SPX.X| SPX.X] closed up 0.14%Â style=”mso-bidi-font-size: 10.0pt”> to 1,140.74style=”mso-bidi-font-size: 10.0pt”>. The Nasdaq
[COMPQ | COMPQ] closed up
0.59% to
0.59%size=2>.

The markets breathed easier today
with an increasing belief that military efforts in Afghanistan are working,
and a better-than-expected retail sales report. As further evidence comes in that the Taliban opposition is falling apart,
U.S. retail sales
appear to be rebounding. The Commerce Department reported an increase of total
retail sales by 7.1 %, the strongest monthly surge since records were
started in the late 1960s. New car sales are the largest factor of the gain,
bolstered by the industry’s 0% financing plans.

style=”mso-bidi-font-size: 10.0pt”>Overall NYSE volume was
1,414,634,000. NYSE advancing
issues were 1,880, with up
volume at 886,482,000; declining
issues were 1,238, with down
volume at 515,660,000. Overall
Nasdaq volume was 2,152,605,000.
Nasdaq advancing issues were 2,061style=”mso-bidi-font-size: 10.0pt”>, with up volume at 1,385,175,000style=”mso-bidi-font-size: 10.0pt”>; declining issues were 1,550 style=”mso-bidi-font-size: 10.0pt”>with down volume at 729,134,000style=”mso-bidi-font-size: 10.0pt”>. The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>VIX
was up 0.02 to 28.60. The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>TRIN
was up 0.88 to 0.35. Strong volume and slight gains are nothing to complain
about for the bulls. The indexes remain on the path for the 200-day MAs, and
evidence of serious selling pressure has yet to be seen. A relatively small day
of gains and a “doji” candlestick sign on the S&P 500 could mean the rally
is losing steam, as some of our href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>market
bias indicatorsÂ are also pointing down, but until the market itself proves
otherwise, the uptrend is intact.

size=2>Computer hardware maker size=2>Hewlett-Packardstyle=”mso-bidi-font-size: 10.0pt”>
(
HWP |
Quote |
Chart |
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PowerRating) up
9.14%style=”mso-bidi-font-size: 10.0pt”> to 22.08
size=2>announced 4rt Qtr earnings of 19 cents a share, more than doubling
analysts’ estimates of 8 cents a share. However, HP said these were
“pro-forma earnings” excluding a $282m pre-tax restructuring charge for
workforce reduction, as well as several other items. On a normal basis
earnings were 5 cents a share for the fourth quarter, compared to earnings of 45 cents
a share a year ago. Where would we be without “pro-forma”?

style=”FONT-WEIGHT: 700; FONT-FAMILY: Arial”>Newmont Mining
style=”FONT-FAMILY: ‘Arial’; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: ‘Times New Roman’; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA”>size=2>Â style=”mso-bidi-font-size: 10.0pt”>
(
NEM |
Quote |
Chart |
News |
PowerRating), down
8.81% to 20.29, style=”mso-bidi-font-size: 10.0pt”>announced that it would buy
size=2>Normandy Mining, Australia’s largest gold producer and Franco-Nevada
Mining Corp of Toronto, to become the world’s largest mining company.

Campbell
Soup Costyle=”mso-bidi-font-size: 10.0pt”>.
(
CPB |
Quote |
Chart |
News |
PowerRating) up 0.50%style=”FONT-FAMILY: Arial”> to 30.29, reported a 16% decline in
fiscal first quarter earnings despite an increase in sales after the Sept. 11
attacks. The losses are attributed to business restructuring. Earnings for the
third quarter came in at 42 cents a share compared to 47 cents a year
ago.

Federated
Department Stores Inc. face=Arial>
(
FD |
Quote |
Chart |
News |
PowerRating) up
6.80%style=”mso-bidi-font-size: 10.0pt”> to 37.20 size=2>reported itsstyle=”FONT-FAMILY: Arial”> fiscal third quarter earnings fell 38% for a
earnings of 17 cents a share compared to 26 cents a share a year ago. Analysts
were anticipating between 13 and 20 cents a share.

Luxury jeweler
Luxury jeweler Tiffany & Co. style=”mso-bidi-font-size: 10.0pt”>
(
TIF |
Quote |
Chart |
News |
PowerRating) size=2>up 6.14%style=”mso-bidi-font-size: 10.0pt”> to 28.34 reported a 34%
decline in third quarter earnings, posting 16 cents a share compared to 24 cents a
year ago. Analysts were expecting 13 cents a
share.

style=”FONT-FAMILY: Arial”>The nation’s largest shoe retailer
Payless ShoeSource Inc style=”mso-bidi-font-size: 10.0pt”>
(
PSS |
Quote |
Chart |
News |
PowerRating) up 2.89% to 57.77 said its third-quarter profits fell
59%, posting 59 cents a share compared to $1.44 a year ago. The general analyst
consensus was 57 cents a share.

Bulls Are Breathing Easier

BUY THE FEAR, SELL THE GREED

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