Here Is The Current Probability Of A Fed Rate Cut

March 18, 2003
Daniel Beighley

The
markets are mixed midday as the world braces for a countdown to war.
All three major averages are trading in narrow ranges above their 50-day moving
averages as they stand ground on recent gains. On the economic front,
disappointing housing starts data had the price action sputter in early trading,
and later today at 2:14 pm ET the results of an FOMC meeting will be released.
Currently the fed funds are trading with a 34% chance of a rate cut.

In economic news, housing starts
disappointed with 1.622 million vs. an expected 1.728 million, and building
permits came in at 1.786 million vs. an expected 1.745 million.

The 10-year U.S. Note
is -065 at 114 110.

The dollar is +0.21 at
101.52.

Gold is +2.10 at 339.30.

Crude OilÂ -2.93 at
32.00.

Volume is at 740,234,000
on the NYSE, and at 830,693,000 on the Nasdaq.

Market breadth is mostly
negative, with NYSE declining issues over advancing issues by a ratio of
1.12, and up volume over down volume by a 1.12 ratio. Nasdaq declining issues
over advancing issues are at 1.14, and down volume is over up volume by a 1.31
ratio.

Weakest on the Dow are:

Stocks In The News:

Doughnut retailer Krispy
Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating), -4.72% at 33.30, posted fourth-quarter earnings $0.01 ahead
of expectations with profits of $0.19 per share. Profits were down 32% from a
year ago.

Catalog retailer
Williams-Sonoma
(
WSM |
Quote |
Chart |
News |
PowerRating), -4.68% at 21.16, beat their fourth-quarter
earnings expectations by $0.01 with profits of $0.67 per share, though said
earnings for the fiscal first-quarter will come in lower than expected.

Oil and gas operations company
Conoco Philips
(
COP |
Quote |
Chart |
News |
PowerRating), -1.75% at 50.11, has been downgraded by First
Albany to “sell” with a new price target of $30.

Mobile home maker Winnebago
Industries
(
WGO |
Quote |
Chart |
News |
PowerRating), -15.83% at 25.05, has missed its second-quarter
earnings expectations by $0.02 with profits of $0.64 per share.

Transportation company C.H.
Robinson
(
CHRW |
Quote |
Chart |
News |
PowerRating), -3.69% at 32.11, has been downgraded by Morgan Stanley
to “underweight” from “equal-weight.”

Also in the transportation
business, Expeditors International of Washington
(
EXPD |
Quote |
Chart |
News |
PowerRating), -0.76% at
35.25, has had coverage initiated on it by Morgan Stanley at “underweight.”

Semiconductor equipment maker
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), +1.23% at 13.291, announced it will
eliminate 2,000 jobs to lower costs. The company is the world’s largest maker of
computer chip production equipment.

Food processing company
Kraft Foods
(
KFT |
Quote |
Chart |
News |
PowerRating), -2.42% at 28.98, has been upgraded by Banc of America
to “buy” from “neutral.”

Household and personal product
maker Procter and Gamble
(
PG |
Quote |
Chart |
News |
PowerRating), +1.49% at 86.77, has raised its
third-quarter guidance to 13-14% earnings per share growth vs. a consensus of
11-13%.

Computer hardware company
Tech Data
(
TECD |
Quote |
Chart |
News |
PowerRating), +4.22% at 23.95, beat its fourth-quarter earnings per
share by $0.03 with profits of $0.58 per share.

danielb@tradingmarkets.com

Here Is The Current Probability Of A Fed Rate Cut

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources