Five Week High On The Dow — Here’s How It Happened

July 25, 2003
Vincent Mao

Stocks
rallied Friday. After early green and
then the standard top-of the-hour pullback, it was all up beginning at 10:50 AM,
sending the Dow to a 5-week high. Positive economic reports on spending and the
housing sector fueled the move. After reporting earnings after the bell last
night, eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating) gapped down this morning, closing at 112.24, down 3.50.Â

Weak today was Internet
(
$INX.X |
Quote |
Chart |
News |
PowerRating), -0.35%, the only red sector.

In economic news, Durable
Goods Orders in June rose by a healthy 2.1% compared to an expected rise of
1.2%. This was the biggest jump in durable orders since February. Existing
Home Sales in June slipped by 0.3% to an annual rate of 5.83 million units.
Economists had expected a rise to 6 million units. Lastly New Home Sales
jumped 4.7% to a record annual rate of 1.16 million units. Economists had
expected an annual rate of 1.11 million units.

The 10-year U.S. Note
was -030 at 113 06.

The dollar was -0.47 at
95.12.

Gold was +2.80 at 363.

Crude Oil was -0.12 at
30.17.

Volume was
1,392,870,000 on
the NYSE, and 1,589,981,000 on the Nasdaq.

For the week, the Dow gained
1%, the Nasdaq rose 1.3%, and the SPXÂ edged up 0.5%t.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.90:1, and up
volume over down volume by 3.14. Nasdaq advancing issues were over advancing
issues by 1.40, and up volume over down volume by 1.86.

Top Dow stock(s) were:

Stocks in the news:

Communications and information
services company Alltel
(
AT |
Quote |
Chart |
News |
PowerRating) rose after Deutsche
Bank upgrade the company from “sell” to “hold”. Deutsche Bank based the upgrade
on the company’s turnaround efforts during the second quarter.

Aerospace giant Boeing
(
BA |
Quote |
Chart |
News |
PowerRating)
is only fractionally lower after recovering for an earlier 6+% loss. The shares
are under pressure after the Air Force took away seven satellite launches from
the Dow component as punishment for stealing sensitive documents. The $1 billion
worth of business will be given to Lockheed Martin
(
LMT |
Quote |
Chart |
News |
PowerRating). Boeing is also considering shutting down production of its
757 jets. BA closed +0.48 at 32.68.

Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating)
reported a net loss versus a profit last year. Costs from the Pharmacia
acquisition affected results. PFE closed up 0.49 at 33.04.

Shares of California Pizza
Kitchen
(
CPKI |
Quote |
Chart |
News |
PowerRating) were after the
resignation of its CEO. Late yesterday the company reported second-quarter
results of 23 cents a share or flat compared to last year’s level and inline
with estimates. The company also announced the resignation of its CEO Fred Hipp.
In addition, the company lowered full-year estimates to between 88 to 91 cents a
share from its earlier forecast of 98 cents to $1.02 a share. CPKI closed at
17.07, down 3.15.

Internet auctioneer Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) traded lower despite reporting better-than-expected
second-quarter results. The company earned 33 cents a share compared to 19 cents
a share in the year-ago quarter. Revenues also jumped by 91% to $509.3 million.
Excluding items, Ebay earned 37 cents a share, topping consensus estimates of 35
cents a share. The company is expecting full-year results of $1.47 a share on
revenues of $2.08 billion or slightly higher than analysts’ estimates of $1.46 a
share on revenues of $2.09 billion. EBAY closed down 3.50 at112.24.

Fiber optics equipment maker
JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating) was lower on weak sales projections.
Late yesterday, the company reported a fourth-quarter loss of 4 cents a share
compared to a loss of 76 cents a share in the year-ago period. Excluding items,
the company lost 2 cents a share or a penny better than analysts’ estimates.
However the shares are under pressure today as the company expects first-quarter
revenues between $145 to $155 million compared to analysts’ estimates of $166
million.

Semiconductor equipment maker
KLA Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating) gained slightly after the company
reported lower but in line results. The company reported earnings of 15 cents a
share compared to 23 cents a share in the year-ago period. Revenues dropped
17.4% to $308.3 million, this was slightly lower than analysts’ estimates of
$309.4 million. KLAC closed up .31 at 52.44.

Steel producer Nucor
(
NUE |
Quote |
Chart |
News |
PowerRating)
fell after the company reported disappointing second-quarter
results. The company reported earnings of 11 cents a share compared to 76 cents
a share in the year-ago quarter. Analysts had expected the company to earn 22
cents a share. The company cited higher energy costs, weak nonresidential
construction market, and increased operating costs for the weak results. Nucor
also expects third-quarter results to be between 15 to 20 cents a share compared
to consensus estimates of 39 cents a share. NUE closed down 2.25 at 47.93.

If you have any comments or questions, please
feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

Five Week High On The Dow — Here’s How It Happened

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