Here’s An Indication For Tomorrow’s Open

March 31, 2003
Daniel Beighley

The markets ended the day lower as
pressing war issues and disappointing economic news weighed on
sentiment. Price action gapped down and hit its lows by 10:30 am ET, then moved
higher throughout the session with a steep sell off in the last hour. Despite
the “window dressing” effect, late-day selling indicates weakness going into
tomorrow’s session, as it’s often the smart money that closes the day.
Bellwether semiconductors and broker/dealers closed at the bottom of their daily
ranges. On the war front, coalition forces remain just outside of Baghdad.

In economic news, Chicago
PMI disappointed at 48.4 vs. expectations of 50.8.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was +170 at 114 280.

The US dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was -0.86 at 99.49.

Volume was average,
with the NYSE coming in at
1,360,214,000 and the Nasdaq at
1,543,233,000.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.43, and down
volume over up volume by a 3.65 ratio. Nasdaq declining issues over advancing
issues came in at 1.49, and down volume beat up volume by a 3.18 ratio.

The

VIX was +1.19 at 33.37. The

TRIN was +1.03 at 2.52.

Leading the Dow down were:

Stocks in the news:

Tobacco company Altria Group
(
MO |
Quote |
Chart |
News |
PowerRating), -6.75% at 29.96, was smacked down after it was reported that its Philip
Morris USA division could not produce $12 billion for a bond to appeal a legalÂ
case in Illinois. The stock is a member of TM’s Implosion List.

Electronics retailer Best
Buy
(
BBY |
Quote |
Chart |
News |
PowerRating), +0.26% at 26.97, said that it is marketing its Musicland
business in order to focus on its core electronics retail business.

Biotech company Imclone
(
IMCL |
Quote |
Chart |
News |
PowerRating), -9.91% at 16.54, sold off after postponing the release of its
fourth-quarter and year end results due the restatement of financials.Â

Software company Checkpoint
Software
(
CHKP |
Quote |
Chart |
News |
PowerRating), -2.49% at 14.47, had its first-quarter estimates cut
by CSFB who claims the company’s competitive edge has deteriorated in the past
six months.

Natural gas utilities company
El Paso
(
EP |
Quote |
Chart |
News |
PowerRating), +2.54% at 6.05, posted a big loss for the fourth-quarter
as it missed its consensus expectations by $0.84.

Food processing company
Kellogg
(
K |
Quote |
Chart |
News |
PowerRating), +2.64% at 30.65, was upgraded by Bear Stearns to “outperform”
from “peer perform”.

Money center bank Wachovia
(
WB |
Quote |
Chart |
News |
PowerRating), -1.33% at 34.07, upped its first-quarter earnings guidance to
$0.76-0.78 vs. a consensus of $0.72.

Retailer Abercrombie and
Fitch
(
ANF |
Quote |
Chart |
News |
PowerRating), +3.44% at 30.03, was given a positive mention in Barron’s
over the weekend which claimed the company could go higher due to sales and
valuation.

Also in the retail business,
Nordstrom
(
JWN |
Quote |
Chart |
News |
PowerRating), -6.46% at 16.20, announced that it expects
fourth-quarter earnings to come in below below expectations.

Media giant America Online
(
AOL |
Quote |
Chart |
News |
PowerRating), -4.31% at 10.86, is being reported to be under investigation by the
SEC over whether or not the company misstated $400 million in advertising
revenue.

Entertainment company Walt
Disney
(
DIS |
Quote |
Chart |
News |
PowerRating), -3.78% at 17.02 had its estimates for the full years 2003
and 2004 cut by Goldman Sachs. The firm is now looking for 2003 earnings per
share to be $0.59 vs. previous expectations of $0.64.

Oil service company
Halliburton
(
HAL |
Quote |
Chart |
News |
PowerRating), -3.31% at 20.73, lost a bid for a $600 million
contract to help rebuild Iraq.

Auto maker Ford Motor
(
F |
Quote |
Chart |
News |
PowerRating),
+1.48% at 7.52, received negative comments in Barron’s over the weekend which
claimed the company could lose its debt rating if efforts to revitalize its
business fail.

Software company Cognizant
Tech
(
CTSH |
Quote |
Chart |
News |
PowerRating), +0.46% at 67.31 had coverage initiated on it by Morgan
Stanley at “underweight”.

danielb@tradingmarkets.com

Here’s An Indication For Tomorrow’s Open

BUY THE FEAR, SELL THE GREED

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