Here’s How The Focus Has Shifted

April 11, 2003
Daniel Beighley

Stocks
are mixed midday after opening sharply higher on the heels of
positive economic data. PPI, retail, and Michigan sentiment all provided upside
surprises. With the tension of war no longer the main focus of traders,
reactions to economic data will once again be considered key to gauging
sentiment. Today’s close will tell us what kind of buying or selling pressure
good news was able to attract. A negative close here will be an indication of
positive news failing to bring in buying pressure. On the earnings front,
Juniper Networks beat its expectations, and is leading the networking stocks to
the biggest gains on the day. Also, Dow heavyweight General ElectricÂ met its
expectations and guided in line for the rest of the year.

In economic news, PPI
came in at 1.5% vs. expectations of 0.3%, core PPI was at 0.7% vs.
expectations of no change, retail sales were up 2.1% vs. expectations of a 0.6%
gain, retail sales ex-auto were up 1.1% vs. expectations of a 0.4% rise,
and Michigan Sentiment came in at 83.2 vs. expectations of 79.0.

The 10-year U.S. Note
is -060 at 114 055.

The dollar is +0.35 at
100.55.

Gold is -0.70 at 326.00.

Crude OilÂ -0.11 at
27.35.

Volume is at 590,007,000
on the NYSE, and at 697,766,000 on the Nasdaq.

Market breadth is mostly
positive, with NYSE advancing issues over declining issues by a ratio of
1.03, and up volume over down volume by a 1.32 ratio. Nasdaq declining issues
over advancing issues are at 1.16, and up volume over down volume is at a 1.02
ratio.

Biggest Dow gainers are:

Stocks in the news:

Dow heavyweight General
Electric
(
GE |
Quote |
Chart |
News |
PowerRating), +0.61% at 27.55, has met its first-quarter earnings
expectations, and has reaffirmed guidance for the rest of the year.

Discount retail giant
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), -1.94% at 5.52, has been downgraded by Prudential to
“hold” from “buy”.

Aerospace and defense companyÂ
Boeing Co.
(
BA |
Quote |
Chart |
News |
PowerRating), -2.91% at 26.30, said that it will take a $1.2
billion pre tax charge to compensate for the falling value of its assets.

Internet equipment company
Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating), +8.11% at 9.09, has beat its first-quarter
earnings expectations by $0.01 with profits of $0.02 per share. The company also
guided higher for the second-quarter as revenue rose 29% from a year ago.

Entertainment giant America
Online
(
AOL |
Quote |
Chart |
News |
PowerRating), -1.98% at 12.40, announced that an initial public offering
for Time Warner Cable will not likely occur until this fall. The company remains
in debt, and is also considering the sale of Warner Music.

Drug retailer Rite Aid
(
RAD |
Quote |
Chart |
News |
PowerRating),
+8.08% at 2.81, was upgraded by Merrill Lynch to “buy” from “neutral” based on
improved performance.

Oil services company Baker
Hughes International
(
BHI |
Quote |
Chart |
News |
PowerRating), -3.52% at 29.32, has lowered its
first-quarter earnings expectations, and now expects to see $0.13-0.14 per share
vs. a consensus of $0.19.

Communications services company
PanAmSat
(
SPOT |
Quote |
Chart |
News |
PowerRating), +2.65% at 15.48, has beat its first-quarter
earnings expectations by $0.07 with profits of $0.21 per share. The company has
also guided higher for the second-quarter.

Broadcasting and cable TV
company EchoStar Communications
(
DISH |
Quote |
Chart |
News |
PowerRating), -2.30% at 27.62, is the
subject of a negative New York Times article which says the company will
have difficulties outperforming Hughes Electronics the way it has for the past
18 months.

danielb@tradingmarkets.com

Here’s How The Focus Has Shifted

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources