Conflict And Clarity

February 1, 2002
Daniel Beighley

The
indexes moved higher off the bell then trended down to the day’s lows
around 12:30 p.m. ET, before drifting higher into the close for losses on the
day. Gold and silver, biotechnology, and oil issues made the best gains of the
day, with Internet and technology stocks lagging in the red.

In economic news, conflicting
data on employment came in, with the U.S. unemployment rate falling for the
first time in seven months, but U.S. payrolls came in with a bigger than
expected decline. The Labor Department said that unemployment fell to 5.6%,
compared to the 5.9% economists were looking for, and non-farm payrolls declined
89,000, far more than the 30,000 expected. The disparity raises questions over
the strength of the economy.

The Institute for Supply
Management reported that the January manufacturing index came in at 49.9,
bettering the 49.5 economists were looking for. This key gauge for activity in
the manufacturing sector suggests declining activity when below 50, and
advancing when over 50.

Overall
NYSE volume was 1,365,601,000.
NYSE advancing issues were 1,446,
with up volume at 500,673,000;
declining issues were 1,670,
with down volume at 851,569,000.
Overall Nasdaq volume was 1,700,678,000.
Nasdaq advancing issues were 1,557,
with up volume at 498,987,000;
declining issues were 2,002
with
down volume at 1,168,790,000.
The VIX
was up 0.08 to 22.92. The TRIN
was up 0.82 to 1.47.

Average volume on the
session saw the Dow touch and fall from its 50-day MA. The S&P 500 stalled
at its downward trend line and the Nasdaq touched and fell below its 200-day MA.
The Semiconductor index
(
SOX.X |
Quote |
Chart |
News |
PowerRating) closed just below its 200-day MA, as the
Broker/Dealers
(
XBD.X |
Quote |
Chart |
News |
PowerRating), closed right between its 50 and 200-day MA’s.

Trash hauler Waste
Management Inc
(
WMI |
Quote |
Chart |
News |
PowerRating), down 12.94% to 25.09, released fourth quarter
earnings of 30 cents a share, excluding certain costs. The company was expected
to earn 34 cents a share, under accounting practices not generally accepted.

Software maker Adobe Systems
(
ADBE |
Quote |
Chart |
News |
PowerRating), up 6.44% to 35.87, announced that it expects first quarter earnings
to come in at 20 to 22 cents a share, beating most analysts’ expectations. The
company also said that it plans to acquire Canada’s Accelio in a $72 million
stock deal.

Media giant Walt Disney Co
(
DIS |
Quote |
Chart |
News |
PowerRating), up 6.60% to 22.45, said that it had earned 15 cents a share, beating
analyst’s polled by Thompson Financial/First Call’s expectations of 10 cents a
share.

The No. 2 U.S. air carrier UAL
Corp.
(
UAL |
Quote |
Chart |
News |
PowerRating), down 8.57% to 13.44, the parent of United Airlines, posted
fourth quarter losses of $308 million, compared to loses of $71 million a year
ago. The calculation is before federal tax aid from the September 11 attacks.

The No. 2 office supply store
in the country Staples Inc.
(
SPLS |
Quote |
Chart |
News |
PowerRating), down 1.82% to 17.889, announced
that it has cut 326 jobs and close 30 stores in the next three months in efforts
to overcome a weak economic environment and stay competitive.

Owner of Monster.com , TMP
Worldwide
(
TMPW |
Quote |
Chart |
News |
PowerRating), down 9.21% 38.65, had its stock suffer from
accusations made by Forbes magazine that it had glossed over its earnings
statements from to hide merger and acquisition costs.

Aerospace company Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating), up 0.24% to 33.69, was upgraded by Salomon Smith Barney to Outperform
from Neutral as the company increases its cash flow through restructuring.

Coffee retailer Starbucks
(
SBUX |
Quote |
Chart |
News |
PowerRating), down 3.66% to 22.90, said that same-store sales for the period
ending Jan. 27 rose 7% from the same period a year ago.

Conflict And Clarity

BUY THE FEAR, SELL THE GREED

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