Here’s One to Watch Tomorrow

April 17, 2002
Daniel Beighley

The major indexes kept tight
ranges as they trended down for the day. Gold and silver, healthcare, oil, and
networking stocks led the charge, with software, computer box makers, and
pharmaceuticals furthest in the red. Of note, the Pharmaceuticals Index
(
$DRG.X |
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PowerRating)
closed very poorly as it is challenging a triple bottom which began in March of
2001. This sector is one to watch tomorrow.

Yesterday’s enthusiasm failed
to carry over to today’s action as Fed Chairman Greenspan gave testimony
regarding the state of the economy. The chairman said that although the economy
has shown signs of strength, he will not rush into raising rates. And now that
"the foundation for economic expansion has been laid out," rates will
eventually increase again.

Market breadth was mostly
positive, with NYSE advancing issues over declining issues by a ratio of 1.12,
and up-volume
over down–volume
by a 1.37 ratio. Nasdaq declining issues over advancing issues came in at 1.11,
and up–volume
beat down–volume
by a 1.38 ratio. The
VIX
was down 0.09 at 20.21. The TRIN
was up 0.43 at 0.81.

Average volume on the NYSE and
above-average volume on the Nasdaq carried the Dow, S&P 500, and Nasdaq
below their 50-day MAs. The Semiconductor Index
(
$SOX.X |
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PowerRating), up
1.23%, is still above its major MAs. The Broker/Dealer Index
(
$XBD.X |
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PowerRating), up 0.42%, moved above its 50-day MA, though closed at the
bottom of its daily range.

Chip giant Intel Corporation (INTC),
up 3.82% at 30.64, reported first quarter income of 14 cents a share, compared
to 7 cents a share a year earlier. Sales increased for the first time in five
quarters, with sales for chips that run personal computers and servers
increasing.

Aerospace and defense company Boeing
(
BA |
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PowerRating), down
6.83% at 45.37, reported a first quarter net loss of $1.25 billion, caused
mainly by a one-time accounting charge, as it came in lower than expected.

Communications maker Motorola Inc (MOT),
up 8.86% at 16.33, reported a first quarter loss of 20 cents a share,
compared to 24 cents a year earlier. The company also said that it expects to be
profitable in the second half of the year.

Software maker Veritas Software (VRTS),
down 16% at 30.96, warned that its second quarter
profits will come in lower than expected, with revenue of $340 to $370 million
compared to the $396.8 expected.

Electric utilities company Duke Energy (DUK),
up 3.79% at 38.61, beat its first quarter
earnings estimates of 41 cents a share when it reported net income of 48 cents a
share.

Automaker Ford Motor Company (F),
up 2.01% at 16.18, reported a narrower than expected loss of 6 cents a share.
Analysts were looking for a loss of 15 cents a share.

Conglomerate United Technologies
(
UTX |
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PowerRating), down 4.48% at 69.80, beat
first quarter estimates and anticipates meeting its 2002 estimates, though it
missed its revenue target for the quarter.

Drug maker Pfizer (PFE),
down 5.13% at 37.85, announced first quarter earnings of 37 cents a share,
compared to 30 cents a year ago.

From TM’s proprietary Momentum
List, entertainment company Harrah’s Entertainment
(
HET |
Quote |
Chart |
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PowerRating) rose
7.43% to 50.43.

From TM’s proprietary Implosion
List, business services company Automatic Data Processors
(
ADP |
Quote |
Chart |
News |
PowerRating)
fell 4.15% to 51.04.

Here’s One to Watch Tomorrow

BUY THE FEAR, SELL THE GREED

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