Here’s The Fuel
Stocks took a big step up today, with the Dow now over 10,000 and the
Nasdaq
over 2,000. This heavy volume rally is being lead by technology, with only a few sectors in the
red. Market breadth is positive, with advancing issues over declining issues by
2:1. Up-volume is outpacing down-volume by 11:1 on the Nasdaq, and 5:1 on the
NYSE. Optimistic comments from Cisco Systems
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yesterday, coupled with an upside surprise from NAPM are seen as the major
motivators for today’s buying.
The
National Association of Purchasing Management reported that its
non-manufacturing business index rose 10.7 points from last month to 51.3.
Analysts were looking for a level of 43. Any number over 50 suggests expansion.
Giving a boost to oil stocks,
Russia said it will cut its oil exports by about 5% next year in response to
pressure from OPEC to comply with world-supported prices. Russia is the world’s
number two oil producer.
In the business headlines,
number two auto maker Ford Motor Co.
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F |
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quarter earnings would come in at less than expected, with a loss of 50 cents a share.
Previous estimates were for a loss of 28 cents.
Media giant America Online
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Leading sectors today are the Semiconductor Index
(
$SOX.X |
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6.33% at 578.57, and the Networking Index
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$NWX.X |
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5.92% at 359.69.
The biggest losing sectors today are the
Pharmaceutical Index
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394.75, and the S&P Health Care Index
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$HCX.X |
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0.40% at 440.92.
From our percent gainers list:
AutoZone Inc.
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AZO |
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78.50 on
over six times average volume. This specialty retailer reported profits
that beat analysts’ expectations by 27%.
EOTT Energy Partners, L.P.
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EOT |
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16.97% at 14.20 on over five times average volume. This oil and gas operations
company announced that it had no relations with Enron.
CNF Inc.
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PowerRating) is up
14.92% at 28.73 on over two times average volume. This trucking company
announced it will combine three units to form a new company that will provide
global logistics, transportation, freight forwarding and supply-chain management
services.
From our percent losers list:
PolyMedica Corporation
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PLMD |
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16.13% at
20.43 on over three times average volume. This medical equipment and supplies
company fell after it announced that it was being investigated by the
Securities and Exchange Commission.
Shuffle Master Inc.
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SHFL |
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15.43% at
14.75 on over five times average volume. This casino and gaming company expects
earnings to come in at less than current consensus.
Right Management Consultants Inc.
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PowerRating)
is down
11.83% at
15.35 on over 100% average volume. This business services company has no
news reported today.