Here Are Two Extreme Readings To Watch

August 19, 2003
Vincent Mao

Stocks are mixed this midday.
Better-than-expected earnings from Staples
(
SPLS |
Quote |
Chart |
News |
PowerRating), higher revenue guidance
from Broadcom
(
BRCM |
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Chart |
News |
PowerRating), and the fastest housing starts in more than 17 years
helped to boost the major indices early on.However, stocks are pulling back
after the Michigan sentiment index came in lower than expected.

The three major indices continued their push out of their recent trading ranges.
The Nasdaq is again leading the pack as the tech-heavy index is breaking above
a slanted triple top. Helping the Nasdaq are the semiconductors which are adding
another 2+% after rising over 5% yesterday. The S&P is just above the psychological
1,000 level, the index has not closed above 1K since July 15.

In economic news, Building Permits in July came in at an annualized rate of
1.780M or below estimates of 1.803M. Housing Starts in July came in at 1.872M
or higher than estimates of 1.790M, this was the highest level since April of
1986. Lastly, the University of Michigan Sentiment Index for Aug came in at
90.2 or below estimates of 91.5.

The 10-year U.S. Note is +240 at 111 270.

The dollar is +0.10 at 97.55.

Gold is +3.70 at 363.60.

Crude Oil -0.17 at 30.72.

Volume is 694,000,000 on the NYSE, and 1,000,000,000 on the Nasdaq.

Market breadth is positive, with NYSE advancing issues over declining issues
by 1.38, and up over down volume by 1.50. Nasdaq advancing issues over declining
issues at 1.31, and up volume over down volume at 1.86.

Top Dow stocks are:

Stocks in the news:

Electronics and testing equipment maker Agilent Technologies
(
A |
Quote |
Chart |
News |
PowerRating) is higher
by almost 7% despite an increase in quarterly losses. For its fiscal third quarter,
the company posted a loss of $3.28 a share compared to a loss of 49 cents a
share in the year-ago quarter. The results included a $1.4 billion non-cash
charge related to income tax accounting. Excluding the charge, the company lost
2 cents a share, topping consensus estimates of a loss of 7 cents a share. Revenues
increased 8% to $1.5 billion. For the current quarter, the Hewlett Packard spinoff
is forecast revenues between $1.5 to $1.6 billion and earnings of nil to 10
cents a share. Current consensus estimates are calling for revenues of $1.58
billion and earnings of 3 cents a share.

Broadband equipment maker Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) is higher by 10.5% after the
company slightly raised its current quarter outlook. Late yesterday in its mid-quarter
update, Broadcom raised its third-quarter revenue estimates to $415.7 million
from last month’s projection of $400 to $410 million. The firm also reaffirmed
full-year results of 64 cents a share on revenues of $1.84 billion.

Biotech firm Human Genome Sciences
(
HGSI |
Quote |
Chart |
News |
PowerRating) is higher by 2.2% after the
company received Fast Track designation for its Abthrax drug. Abthrax is used
to treat and prevent Anthrax infections.

Software maker Mercury Interactive
(
MERQ |
Quote |
Chart |
News |
PowerRating) is higher by more than 5% after
Soundview raised the stock’s rating from "Neutral" to "Outperform".
The firm based the upgrade on valuation and the company’s recent acquisition
of privately held Kitana. Soundview also raised its fiscal 2004 estimates from
$1.16 to $1.20 and raised their price target from $41 to $48.

Office supplies retailer Staples
(
SPLS |
Quote |
Chart |
News |
PowerRating) is higher by more than 9% after
the company reported better-than-expected results and raised full-year guidance.
The company reported second-quarter earnings of 18 cents a share, compared to
13 cents a share. The results topped analysts’ estimates by 2 cents. Revenues
rose 18% to $2.87 billion. Staples raised its full-year outlook from $1.05 to
$1.09 a share.

Home improvement retailer Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating) is lower by 4% despite reporting
better-than-expected second-quarter results. For its second quarter, the company
earned 56 cents a share compared to 50 cents a share in the year-ago quarter.
Home Depot beat Street estimates by 2 cents. Deutsche Bank said that its quarter
was "generally good" but "pales in comparision" to rival
Lowe’s
(
LOW |
Quote |
Chart |
News |
PowerRating).

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

Vincent Mao

vincentm@tradingmarkets.com

Here Are Two Extreme Readings To Watch

BUY THE FEAR, SELL THE GREED

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