Here’s The Story On Leadership

March 14, 2003
Daniel Beighley

The
major averages ended the day mixed after an attempt to follow through
on yesterday’s rally sputtered out. Price action was narrow and closed at the
bottom of its range, with technology the weakest performer, failing to sustain
its leadership from yesterday. On the geopolitical front, Bush is scheduled to
hold a summit on disarming Iraq this Sunday, which is anticipated to hold
further clues as to when and if a military confrontation will be used.

In economic news, PPI
came in at 1.0% vs. expectations of 0.6%, core PPI was at – 0.5% vs.
estimates of 0.1%, business inventories rose at an expected 0.2% rate,
industrial production was at an expected 0.1%, capacity utilization
gave no shocks with a reading of 75.6% vs. estimates of 75.7%, and Michigan
sentiment came in at 75.0 vs. expectations of 78.0.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was -+100 at 116 190.

The US dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was +10.44 at 100.05.

Volume was above
average, with the NYSE coming in at 1,500,657,000
and the Nasdaq at 1,585,833,000.

Market breadth was mixed,
with NYSE advancing issues over declining issues by a ratio of 1.23, and up
volume over down volume by a 1.09 ratio. Nasdaq declining issues over advancing
issues came in at 1.09, and down volume beat up volume by a 1.34 ratio.Â

The

VIX was +0.40 at 36.33. The

TRIN was +0.54 at 1.12.

Leading the Dow were:

Stocks in the news:

Chemical manufacturing company
Monsato
(
MON |
Quote |
Chart |
News |
PowerRating), -15.13% at 14.07, announced that it is under
investigation by the SEC over antitrust issues in the herbicide industry.

Basic materials company and Dow
component DuPont
(
DD |
Quote |
Chart |
News |
PowerRating), +1.39% at 37.82, said it will pay out $77
million to shareholders in a settlement over its fungicide Benlate, which has
now been discontinued.

Video game retailer
Electronics Boutique
(
ELBO |
Quote |
Chart |
News |
PowerRating), +11.30% at 16.35, beat its fourth-quarter
estimates by $0.05 with profits of $1.16 per share.

Women’s retailer Bebe Stores
(
BEBE |
Quote |
Chart |
News |
PowerRating), -16.30% at 12.01, sold off after disappointed on its fiscal
third-quarter expectations with profits of $0.03 per shares vs. the anticipated
$0.11 per share.

Computer peripherals maker
Symbol Technologies
(
SBL |
Quote |
Chart |
News |
PowerRating), -13.08% at 9.30, said that the SEC has
recommended civil action against the company over accounting issues.

Discount broker Ameritrade
(
AMTD |
Quote |
Chart |
News |
PowerRating), -8.96% at 3.96, lowered its earnings guidance for the rest of the
year due to weak market conditions.

Auto maker Ford Motor Co.
(
F |
Quote |
Chart |
News |
PowerRating), -5.18% at 6.76, announced that it plans to cut production 17% from a year
ago, claiming that war worries and a weak economy could be a drag on consumer
spending.

Steel maker U.S. Steel
(
X |
Quote |
Chart |
News |
PowerRating),
-3.81% at 10.09, sold off after Merrill Lynch lowered its first-quarter
estimates on the company to a loss off $0.19 per share vs. previous estimates of
a gain of $0.40 per share.

Aerospace and defense company
Alliant Tech
(
ATK |
Quote |
Chart |
News |
PowerRating), +3.79% at 49.50, was upgraded by Salomon Smith
Barney to “outperform” from “in-line.”

Printing and publishing company
Knight-Ridder
(
KRI |
Quote |
Chart |
News |
PowerRating), -2.12% at 59.85, was downgraded by Merrill Lynch
to “neutral” from “buy.”

Railroad company Union
Pacific
(
UNP |
Quote |
Chart |
News |
PowerRating), +0.98% at 53.18, was downgraded by Salomon Smith Barney
to “underperform” from “in-line.”

Drug maker Trimeris
(
TRMS |
Quote |
Chart |
News |
PowerRating),
-6.59% at 41.05, announced that it has received FDA approval for its HIV drug
Fuzeon. The drug is the first to prevent HIV replication.

Conglomerate Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating),
-6.42% at 11.50, reassured investors that it is on track to meet earnings
expectations after many have raised concerns over the company’s bookkeeping
practices.

Software maker Adobe Systems
(
ADBE |
Quote |
Chart |
News |
PowerRating), +7.95% at 30.79, beat its first-quarter earnings expectations by
$0.03 with profits of $0.25 per share.

Airline JetBlue Airways
(
JBLU |
Quote |
Chart |
News |
PowerRating), +3.17% at 25.02, is the focus of a positive Business Week
article which claims the stock could be heading for new highs.

Home builder KB Home
(
KBH |
Quote |
Chart |
News |
PowerRating),
+0.59% at 45.49, beat its first-quarter earnings expectations by $0.08 with
profits of $1.25 per share.

danielb@tradingmarkets.com

Here’s The Story On Leadership

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources