Here’s Another Milestone For The Nasdaq

August 28, 2003
Vincent Mao

Stocks are
mixed this midday.Â A positive start
brought on by a better-than-expected GDP report was quickly aborted as mixed
reports on the job market had investors thinking twice. However, stocks are
fighting their way out of the red. Both the broader S&P and Nasdaq indices are
currently back in the green while the Dow remains slightly red. Second-quarter
GDP was upwardly revised to show that the U.S. economy grew at the fastest rate
in about a year. The growth in the economy was higher than expected and
continues to provide evidence to the economic recovery. However, the latest data
on the job market was a little disappointing as weekly jobless claims rose
slightly while help-wanted ads came in lower than expected.

After hitting a 16-month high
yesterday, the Nasdaq is making further headway on that milestone. Its
top-performing sector, semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) are only up a fraction
after yesterday’s 3% jump. Semiconductor equipment maker Novellus Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating)
will give its mid-quarter update later today. For the past couple of sessions,
stocks have been able to muster up a late-session rally, therefore be on the
lookout in case of a reversal. Bonds are rallying more than 2 points despite the
stronger-than-expected GDP report.Â

In economic news, GDP for
the second quarter grew by 3.1% compared to economists’ expectations of
2.9%. Weekly Jobless Claims for the week ended August 23 rose by 3,000 to
394,000. Economist had expected a drop to 300,000. Claims have remain under the
critical 400K level for five out of six weeks. The less volatile four-week
moving average inched up to 396,250 from a revised 395,750. This was the fourth
straight reading under 400K. Lastly, in a sign that job listing remains low, the
Help-Wanted Index in July remained at 38 compared to economists’
expectations of 39.Â

The 10-year U.S. Note
is +300 at 109 270.

The dollar is -0.20 at
98.79.

Gold is -1.90 at 372.20.

Crude Oil +0.31 at
31.52.

Volume is 631,000,000 on
the NYSE, and 862,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 1.64, and up over down
volume by 1.72; Nasdaq advancing issues over declining issues at 1.23, and up
volume over down volume at 1.71.

Top Dow stocks are:

Stocks in the news:

Women’s clothing retailer
Chico’s FAS
(
CHS |
Quote |
Chart |
News |
PowerRating) is higher by almost 6% after the company reported
second-quarter results that topped analysts’ estimates. Late yesterday the
company reported earnings of 28 cents a share compared to 19 cents a share in
the year-ago quarter. The results beat analysts’ estimates by 2 cents. Revenues
jumped 39% to a record $173.4 million.Â

Biotech firms Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating)
and Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating) settled a patent dispute. Under the terms, both
companies agreed to dismiss all claims and counterclaims. Amgen will also make a
one-time payment to Genentech and take a 5 cents charge in its third quarter.
Genentech said that its full year fiscal 2003 results will be boosted by about
20 cents a share. Shares of both companies are trading lower by about 1%.

The nations largest
post-secondary education company Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) is higher by
2.5% after the company’s optimistic 2004 outlook. The company is forecasting
fiscal 2004 earnings of $1.64 a share on revenues of $1.731 to $1.734 billion.
This is slightly higher than consensus estimates of $1.62 a share.Â

Pet supplies and services
retailer PetsMart
(
PETM |
Quote |
Chart |
News |
PowerRating) is higher by nearly 10% after the company
reported better-than-expected second-quarter results and lifted its full year
outlook. The company earned 19 cents a share compared to 15 cents a share in the
year-ago quarter. The results topped analysts’ estimates by 2 cents. Revenues
jumped 11% to $725.8 million. PetsMart’s gross margins also climbed 1.13
percentage points to 29.7%. Looking ahead, the company sees full-year results
between 91 to 93 cents a share compared to an earlier forecast of 88 to 90 cents
a share.Â

Information technology product
distributor Tech Data
(
TECD |
Quote |
Chart |
News |
PowerRating) is lower by 2% after the company
reported aÂ 50% drop in quarterly earnings. Due to workforce reduction and other
costs, the company reported second-quarter results of 30 cents a share compared
to 60 cents a share in the year-ago quarter. Excluding charges, the company
would have earned 34 cents a share. The results were below analysts’ estimates
of 37 cents a share. Looking ahead, the company sees third-quarter revenues of
$4.05 to $4.2 billion and earnings of 40 to 45 cents a share. Analysts are
expecting revenues of $4.02 billion and earnings of 41 cents a share.Â

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

Vincent Mao

vincentm@tradingmarkets.com

Here’s Another Milestone For The Nasdaq

BUY THE FEAR, SELL THE GREED

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