Here Is Where You’ll Find Strength In This Market

March 28, 2003
Daniel Beighley

The
major indexes finished the day under water as price action held a
narrow range with mostly sideways action. Volume was one of the lightest of the
year, as the situation in Iraq produced no major market moving news. Defensive
issues represented the strength of the day, with gold-mining stocks notching in
a hefty gain as it formed a
Kevin Haggerty 1,2,3
setup. For a directional bias
going into next week, be sure to check out
TM’s Market Bias
page, where two CVR
signals are flashing red.

In economic news, Michigan
sentiment was at 77.6 vs. estimates of 75.0, personal income rose
0.3% vs. estimates of a 0.2% increase, and personal spending came in at
unchanged vs. estimates of no change.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was +135 at 114 110.

The US dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was -0.77 at 100.35.

Volume was well below
average, with the NYSE coming in at 1,202,118,000 and the Nasdaq at
1,325,365,000.

Market breadth was mostly
negative, with NYSE advancing issues over declining issues by a ratio of
1.20, and down volume over up volume by a 1.23 ratio. Nasdaq declining issues
over advancing issues came in at 1.13, and down volume beat up volume by a 2.57
ratio.

The

VIX was +0.03 at 32.18. The

TRIN was +0.21 at 1.60.

Biggest Dow losers were:

Stocks in the news:

Industrial manufacturer Textron
(
TXT |
Quote |
Chart |
News |
PowerRating), -1.01% at
28.28, reduced its 2003 earnings estimates after announcing last week that one
of its biggest customers for its Cessna business had cut back on orders.

Hotel operator Hilton Hotels
(
HLT |
Quote |
Chart |
News |
PowerRating), -0.42% at
11.74, issued a profit warning for the first-quarter and full year due to
uncertainty stemming from war in Iraq.

Cosmetic maker Avon Products
(
AVP |
Quote |
Chart |
News |
PowerRating), +2.43% at
56.90, said that it expects to beat its first-quarter earnings by $0.01 with
profits of 0.41 per share. The company cited strength in its international
business.

Internet infrastructure company
Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating), -2.07% at 13.22, had its April to July revenue
estimates cut by UBS Warburg in anticipation of weaker sales in February and
March.

Tobacco company Altria
(
MO |
Quote |
Chart |
News |
PowerRating),
-3.51% at 32.13, announced that it will appeal a ruling from the Italian
antitrust authority over misdealing with the Italian state tobacco company.

Broadcasting and cable TV
company EchoStar
(
DISH |
Quote |
Chart |
News |
PowerRating), -1.17% at 29.48, sold off after a Wall
Street Journal article reported the company will enter the residential Internet
connection business with SES Global SA.

Trucking company Swift
Transportation
(
SWFT |
Quote |
Chart |
News |
PowerRating), -6.94% at 15.80, lowered their first-quarter
earnings expectations to $0.07-0.11 vs. a consensus of $0.15.

Metal mining company Inco
Limited
(
N |
Quote |
Chart |
News |
PowerRating), +4.44% at 18.80, was upgraded by Morgan Stanley to
“overweight” from “equal-weight”.

Media company New York Times
(
NYT |
Quote |
Chart |
News |
PowerRating), -1.29% at 44.22, issued a profit warning for its first-quarter, and
now expects to earn $0.42-0.45 per share vs. previous estimates of $0.44.

Gold miner Newmont Mining
(
NEM |
Quote |
Chart |
News |
PowerRating), +8.26% at 26.59, beat its fourth-quarter earnings by $0.02 with
profits of $0.19 per share.

Biotech firm Invitrogen
(
IVGN |
Quote |
Chart |
News |
PowerRating), -3.15% at 31.02, had coverage initiated on it by Morgan Staley at
“underweight”.

Clothing retailer Jones
Apparel
(
JNY |
Quote |
Chart |
News |
PowerRating), -2.89% at 27.18, been downgraded by Merrill Lynch to
“neutral” from “buy”.

danielb@tradingmarkets.com

Here Is Where You’ll Find Strength In This Market

BUY THE FEAR, SELL THE GREED

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