Here’s Today’s Leading Sector

August 27, 2003
Vincent Mao

Stocks are
mixed lower this midday.Â After a
turnaround Tuesday, stocks are failing to show much follow through. Both the Dow
and S&P are slightly red while the Nasdaq is slightly green. Semiconductor
issues are helping to boost the Nasdaq higher after Bear Stearns upgraded
Fairchild Semiconductors
(
FCS |
Quote |
Chart |
News |
PowerRating) from “peer perform” to “outperform.” National
Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating) saw its rating get lifted by Lehman Brothers. The
semiconductor index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) is at its highs of the day. A close at this
level would represent a 16-month high. Volume is again light as we draw closer
to Monday’s Labor Day holiday. The Dow Jones Industrial Average has fallen back
into its two-plus-month-long trading range. A break above resistance at 9350
would be positive. Bonds are lower today and dollar is slightly higher.Â

No economic news for today.
Tomorrow we will have Chain Deflator, Initial Jobless Claims, GDP, and the
Help-Wanted Index.Â

The 10-year U.S. Note
is -100 at 110 265.

The dollar is -0.02 at
98.82.

Gold is +6.30 at 373.10.

Crude Oil -0.65 at
31.30.

Volume is 482,000,000 on
the NYSE, and 667,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 1.14, and up over down
volume by 1.46. Nasdaq advancing issues over declining issues at 1.23, and up
volume over down volume at 1.92.

Top Dow stocks are:

Stocks in the news:

Altria Group
(
MO |
Quote |
Chart |
News |
PowerRating) is
higher by 1% after the company’s board approved raising its quarterly dividend
from 64 cents to 68 cents a share.Â

Retailer Dollar Tree Stores

(
DLTR |
Quote |
Chart |
News |
PowerRating) is higher by 3.7% after the company reported second-quarter
results that were better than analysts’ estimates. The discount store operator
reported earnings of 25 cents a share compared to 21 cents a share in the
year-ago quarter. The results beat expectations by a penny. Revenues jumped 22%
to $626 million. Dollar Tree also upped their full-year sales growth target to
19% from 15%.Â

French drug maker Flamel
Technologies
(
FLML |
Quote |
Chart |
News |
PowerRating) is higher by more than 25% after the company
announced that they have entered into a deal with Bristol-Myers Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating).
The companies have entered into an agreement to develop a controlled-release
insulin for patients with adult-onset or juvenile diabetes. Under the deal,
Bristol-Myers will assume development and manufacturing costs as well as hold
worldwide rights. Flamel will receive $20 million up front and $145 million in
milestone payments. Flamel will also receive royalties.Â

Tax preparation and financial
services provider H&R Block
(
HRB |
Quote |
Chart |
News |
PowerRating) is higher by 4.5% after the company
surprisingly posted a first-quarter profit. Thanks to solid results from its
mortgage business, the company reported first-quarter earnings of 6 cents a
share compared to a loss of 5 cents a share in the year-ago quarter. H&R Block
has not posted a first-quarter profit since 1995.

National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating)
is higher by 3.5% after Lehman Brothers upgraded the stock from “under weight”
to “equal weight”. The firm based the upgrade on the company’s improving
margins, a “reasonable” valuation, and a general industry recovery.Â

Semiconductor maker Semtech

(
SMTC |
Quote |
Chart |
News |
PowerRating) is trading higher by 15%. The company reported second-quarter
earnings of 3 cents a share or 9 cents a share excluding items. Analysts were
expecting 9 cents a share. Looking ahead, the company is forecasting earnings of
11 cents a share for the third quarter.

Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating)
is lower by 3.6% despite reporting fourth-quarter results that topped analysts’
expectations. The for-profit education provider reported earnings of 39 cents a
share compared to 27 cents a share in the year-ago quarter. Analysts were
looking for the firm to earn 37 cents. Revenues jumped 47% to $138.9 million.
Looking ahead, the company provided first-quarter and full-year estimates in
line with analysts’ estimates.Â

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

Vincent Mao

vincentm@tradingmarkets.com

Here’s Today’s Leading Sector

BUY THE FEAR, SELL THE GREED

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