Dazzling
The indices gapped up this
morning and stayed within the upper portions of their daily ranges until a late
afternoon sell-off pushed the price action lower, though gains were kept for the
day. Technology dazzled, with Internet, computer hardware, and semiconductor
stocks making the biggest gains, and gold and silver, oil service, and energy
stocks taking the biggest losses.
The
Dow Jones Industrial Average
(
$INDU |
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PowerRating) closed up 0.44%Â to
10,572.49.
The S&P 500
(
$SPX |
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PowerRating) closed up 0.58%
to 1,164.31.
The Nasdaq [$COMPQ |$COMPQ] closed up 2.55%
to 1,929.67.
Despite several downgrades, a
better-than-expected employment report put traders in a buying mood this
morning, with unemployment coming in at 5.5%, better than the 5.8% expected.
There were also 66,000 jobs added for the month of February, suggesting an
economy recovering.
Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.12, and up-volume
over down-volume by a 1.57 ratio. Nasdaq advancing issues over declining issues
came in at 4.95, and up-volume beat down-volume by a 3.27 ratio. The
VIX
was down 0.41 to 21.54. The TRIN
was down 0.47 at 0.71.
Slightly above average volume
on the session carried the Dow to higher levels, though it closed at the bottom
of its daily range; the S&P 500 had its third consecutive close above its
200-day MA, though it too closed at the bottom of its range; and the Nasdaq had
its first close above its 200-day MA since Jan. 28. The Semiconductor Index
(
$SOX.X |
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PowerRating),
up 4.40%, broke out of its recent consolidation. The Broker/Dealer Index
(
$XBD.X |
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PowerRating), up 1.01%, stayed within yesterday’s trading range, also closing
at the bottom of its range.
Top
sectors of the day were the GSTI
Hardware Index
(
$GHA.X |
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PowerRating), up
4.96% at 255.11
and the Morgan Stanley Internet
Index
(
$MOX.X |
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PowerRating), up 4.69% at
12.94.
Losing
sectors of the day were the Gold and Silver Index
(
$XAU.X |
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PowerRating), down 2.57% at 60.90,
and the Oil Service Sector Index
(
$OSX.X |
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PowerRating), down 2.03% to 96.75.
Chip giant Intel Corporation (INTC),
up 3.70% at 34.20, announced after the bell yesterday that first quarter sales
will be in line with forecasts.
Computer hardware maker Sun Microsystems (SUNW),
up 13.02% at 9.98, said that it was on track to increase revenues and move
closer to profitability for this quarter.
Drug maker Biogen Inc. (BGEN),
down 8.42% at 51.65, reported that the FDA has approved rival company Serono’s
drug Rebif to compete with its drug Avonex in treating multiple sclerosis.
Oil services company Schlumberger
(
SLB |
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PowerRating), down 3.73% at 58.10, was
downgraded by UBS Warburg to Hold from Buy claiming a recent run-up in its stock
price has made its valuation too rich.
Railroad companies Union Pacific
(
UNP |
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PowerRating), down 4.49% at 61.70, and Burlington
Northern Santa Fe
(
BNI |
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PowerRating), down 3.04% at 30.30, were also downgraded by
UBS Warburg to Hold from Buy, citing that the economic recovery is already
priced into the stocks.
Salomon Smith Barney also passed out its share of downgrades in the finance
sector, as Merrill Lynch
(
MER |
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PowerRating), up 0.91% at 53.27, Morgan Stanley
(
MWD |
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PowerRating), up 3.13% at 56.95, Lehman Brothers
(
LEH |
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PowerRating), up 1.70% at
64.55, Goldman Sachs
(
GS |
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PowerRating), up 0.37% at 90.29, and Bear Sterns
(
BSC |
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PowerRating), up 0.94% at 60.15, were all cited as having rich valuations.
Fiber optic company JDS Uniphase
(
JDSU |
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PowerRating), down 1.56% at 6.31, was
the subject of negative comments from Merrill Lynch, as the company was
downgraded to Neutral from Buy, citing weak fundamentals of customers as an
issue.
Retailer K-Mart
(
KM |
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Chart |
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PowerRating), up 4.03% at 1.29, rose on news that it would
close 284 under-performing stores which would eliminate 22,000 jobs.Â