Four News Events Stand As Potential Market Movers

March 6, 2003
Daniel Beighley

In
narrow trading ranges, the major indexes chopped sideways for much of
the day and ended in negative territory. Blue chips were hardest hit as the Dow
took the heaviest loss. Volume was light ahead of key news events including
President Bush’s press conference tonight at 8 pm ET and Intel’s mid-quarter
update after the bell. We also have a big day tomorrow with key employment data
coming in the pre-market, and a potential resolve from the UN over going to war
with Iraq.

In economic news, initial
claims came in at 430K vs. expectations of 403K, productivity
revision was at 0.8% vs. an estimate of 0.2%, and factory orders were up
2.1% vs. expectations of 1.8%.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was -065 at 117 065.

The US dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was +0.08 at 98.37.

Volume was below
average, with the NYSE coming in at 1,272,065,000
and the Nasdaq at 1,263,217,000.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.64, and down
volume over up volume by a 2.02 ratio. Nasdaq declining issues over advancing
issues came in at 1.54, and down volume beat up volume by a 2.13 ratio.

The
VIX
was +2.11 at 36.34. The TRIN
was +0.49 at 1.21.

Biggest Dow losers were:

Stocks in the news:

In the chip sector National
Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating), -1.97% at 15.85, reported earnings in line with
estimates, though revenue disappointed.

Chemical manufacturing company Omincom
(
OMN |
Quote |
Chart |
News |
PowerRating), +2.12% at 3.36, has had its 2003 estimates cut by JP Morgan to $3.45
from $3.63 per share.

Food processing company Sysco
Corp.
(
SYY |
Quote |
Chart |
News |
PowerRating), -1.15% at 24.60, is the subject of negative comments in a Wall
Street Journal article which claims the company may face slow growth,
deteriorating fundamentals, and lower prices for its products.

Also in the food-processing
business, Tyson Foods
(
TSN |
Quote |
Chart |
News |
PowerRating), -9.73% at 7.70, lowered its
second-quarter earnings outlook due to difficult operating conditions.

Defense contractor Raytheon
(
RTN |
Quote |
Chart |
News |
PowerRating), -5.53% at 25.42, announced that it will payer higher costs on
divestment made three years ago, and issued a profit warning for 2004.

Clothing retailer Talbots
(
TLB |
Quote |
Chart |
News |
PowerRating), -0.55% at 23.26, has reported same-store sales down 11.7% for
February, and has guided lower for the first-quarter.

Electronics retailer Best
Buy Inc.
(
BBY |
Quote |
Chart |
News |
PowerRating), +3.22% at 27.52, announced that it will meet or exceed
its fourth-quarter estimates as it reports same-store sales down 0.2% for
February.

Pet retailer Petco
(
PETC |
Quote |
Chart |
News |
PowerRating),
+4.64% at 17.80, has been upgraded by Lehman Brothers to “overweight”
from “equal-weight.”

danielb@tradingmarkets.com

Four News Events Stand As Potential Market Movers

BUY THE FEAR, SELL THE GREED

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