Here Are Key Support Levels For The Dow And S&P

September 22, 2003
Vincent Mao

Stocks are
lower this midday. The major indices are
starting the week off on a negative note as stocks are modestly lower across the
board. Equities were under pressure from the start after a plunge in the dollar.
The US. Dollar Index
(
DXZ3 |
Quote |
Chart |
News |
PowerRating) fell to a three-month low. At this past
weekend’s G7 meeting, ministers and central bankers said, “We emphasize that
more flexibility in exchange rates is desirable for major countries or economic
areas to promote smooth and widespread adjustments in the international
financial system, based on market mechanisms.” A weaker dollar may discourage
international investors from putting money in US securities. After rallying to
multi-month highs last week, both the Dow and S&P could be pulling back to their
20-day moving averages. Bonds are lower today while gold is higher by more than
$4.

No economic reports today.

The 10-year U.S. Note
is -260 at 111 235.

The dollar is -1.03 at
94.31.

Gold is +4.30 at 387.20.

Crude Oil +0.11 at
27.14.

Volume is 621,000,000 on
the NYSE, and 939,000,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by 3.28, and down over up
volume by 4.20; Nasdaq declining issues over advancing issues at 2.62, and down
volume over up volume at 3.22.

Top Dow stocks are:

Stocks in the news:

NPS Pharmaceuticals
(
NPSP |
Quote |
Chart |
News |
PowerRating)
is lower by nearly 10% after CIBC World Markets downgraded the stock from
“Sector Perform” to “Sector Underperform”. CIBC based the downgrade on the
company’s “PaTH” clinical study.

Broadband communications
equipment maker Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) is now fractionally higher after
selling off more than 3%. Wedbush Morgan downgraded the company from “Buy” to
“Hold” based on valuation. The firm also believes that startups acquired in 1999
to 2000 could hamper corporate results.

Communications giant
Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) is trading higher by more than 10% after the resignation
of CEO Christopher Galvin, after differences with the board. Although Galvin was
credited with returning the company to profitably, he was criticized for being
slow to competitive threats. Merrill Lynch also upgraded the stock from
“Neutral” to “Buy”.

Used car retailer CarMax
(
KMX |
Quote |
Chart |
News |
PowerRating) is lower by 5% after the company guided third-quarter projections
below consensus estimates. CarMax reported second-quarter results of 37 cents a
share compared to 30 cents a share in the year-ago quarter. The results topped
analysts’ estimates by a penny. Revenues jumped 14% to $1.24 billion. However,
the company’s third-quarter projection of between 19 to 21 cents a share is
slightly below consensus forecast of 22 cents a share.

The world’s largest retailer
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) is lower by 1.65% after the company said that September
sales are near the high end of its 3% to 5% projections, however they are still
below August’s levels. Hurricane Isabel did negatively impact 100 of its
stores.

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

Vincent Mao

vincentm@tradingmarkets.com

Here Are Key Support Levels For The Dow And S&P

BUY THE FEAR, SELL THE GREED

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