Don’t Leave This Off Your Calendar

After
a higher open, stocks took a nose dive
and failed to regain the highs
of the session. Afternoon trading was marked mostly by sideways price action, as
speculation now turns to key earnings announcements for the week. The Dow and
the S&P 500 are currently parked below their 200-day moving averages, with the
Nasdaq just above this mark. A narrow trading range has developed over the past
six sessions, as concerns of war, and fears over the economic health of the US
economy continue to linger. This week’s economic agenda is packed, with retail
numbers set to be released pre-market tomorrow. 

The Dow Jones Industrial
Average

(
$INDU.X |
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closed +0.01% at 8,746.98. The S&P 500
(
$SPX.X |
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closed -0.14% at 926.27. The Nasdaq
(
$COMPQ |
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closed -0.11% at
1,446.08.

The biggest gainers on the day
were biotechnology
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$BTK.X |
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, +1.95%, airlines
(
$XAL.X |
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,
+1.56%, and Internet
(
$ECM.X |
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, +1.46%.

The biggest laggards on the day
were utilities
(
$UTY.X |
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, -2.54%,
oil
service

(
$OSX.X |
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, -2.26%, and semiconductors
(
$SOX.X |
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,
-1.75%.

There were no economic releases
for the day.

The Ten Year Note
(
TYH3 |
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was -090 at 112 180.

The US Dollar
(
DXH3 |
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was  -0.27 at 101.83.

Volume was average,
with the NYSE coming in at 1,338,558,000 and the Nasdaq at 1,589,330,000.

Market breadth was mixed,
with NYSE advancing issues over declining issues by a ratio of 1.06, and up
volume over down volume by a 1.02 ratio. Nasdaq declining issues over advancing
issues came in at 1.02, and down volume beat up volume by a 1.45 ratio.

The

VIX
was +0.39 at 27.52. The

TRIN
was +0.23 at 0.99.

Leading the Dow were:

Home Depot
(
HD |
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, +1.76% at 21.96, General
Motors

(
GM |
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, +1.61% at 39.74, Boeing Co.
(
BA |
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, +1.32% at 34.30,
Coca Cola
(
KO |
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, +1.23% at 45.76, American Express
(
AXP |
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,
+0.94% at 38.54, and Microsoft Corp.
(
MSFT |
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, +0.84% at 56.39.

Stocks in
the news:

Entertainment giant America
Online
‘s
(
AOL |
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, +1.00% at 15.03, Chairman Steve Case has announced that
he will step down from his post, though will remain a director and co-chair of
the Strategy Committee.

No. 1 PC maker,
Dell Computer
(
DELL |
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, -4.30% at 25.98,was downgraded by JP Morgan to
“neutral” from “overweight.”

In the chip sector, Motorola
(
MOT |
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,
-4.83% at 9.45, sold off after it announced it will make an offer for Next
Level Communications

(
NXTV |
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+34.06% at 1.22. 

Deutsche Bank downgraded
electronics companies Jabil Circuit
(
JBL |
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, -5.22% at 18.88, Plexus
Corp.

(
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, -6.40% at 9.35, Sanmina SCI Corp.
(
SANM |
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,
-7.19% at 4.90, and Solectron
(
SLR |
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, unchanged at 4.26, to “sell”,
and Celestica
(
CLS |
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, -1.73% at 17.00, to “hold.”

Electric utilities company
Duke Energy

(
DUK |
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, -14.90% at 17.87,  lowered its earnings
guidance for 2002 and 2003. For 2003 the company now sees earnings per share at
$1.35-1.60 vs. a consensus of  $1.84.

Healthcare company Tenet
Healthcare

(
THC |
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, +4.98% at 17.69, beat its second-quarter earnings
expectations by $0.02 with profits of $0.72 per share.

Oil service stocks were under pressure
after
Smith International
(
SII |
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,
-4.00% at 30.17, lowered its fourth-quarter earnings guidance to $0.18 vs. a
consensus of $0.24. Also from the sector, Global Santa Fe
(
GSF |
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,
-2.29% at 22.13, Ensco
(
ESV |
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, -2.40% at 26.35, Haliburton
(
HAL |
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,
-0.81% at 19.49, and Weatherford International
(
WFT |
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, -3.34% at
35.56.

Oil company Apache Corporation
(
APA |
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,
+2.66% at 58.11, announced that it intends to buy BP’s
(
BP |
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, -1.03% at
40.19, North Sea and Gulf of Mexico properties.

Paper company Georgia Pacific
(
GP |
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,
-7.68% at 16.58, warned that its fourth-quarter profits will come in below Wall
Street’s consensus. Also in the industry, Kimberly Clark
(
KMB |
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PowerRating)
,
-0.28% at 46.17, has been downgraded by Bank of America to “sell”  with a price
target of $40.

Internet company United Online
(
UNTD |
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,
+2.87% at 16.45 was given positive comments in a Barron’s as a turn around
Internet company now operating in the black.

Medical equipment and supplies company
Baxter International
(
BAX |
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, +2.07%
at 31.03, was upgraded by RBC Capital to “outperform” from “sector perform”.

Defense contractor
Raytheon
(
RTN |
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, -4.99% at 29.85, said
that they are under informal investigation by the SEC over accounting issues.

Software king Microsoft
(
MSFT |
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, +0.84% at 56.39, is to pay $1.1 billion to 13 million California
consumers to settle an anti-trust lawsuit.

From TM’s Implosion List,
printing and publishing company Scholastic Corp.
(
SCHL |
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PowerRating)
, -5.35 at
34.08.


Daniel