Here’s What Sparked The Rally

February 10, 2003
Daniel Beighley

The
indexes are higher midday after early losses were reversed on the
heels of news Iraq will unconditionally accept U-2 sp plane flights over their
country. Concerns over what appears to be inevitable conflict with Iraq
continues to dominate market talk, as traders adjust their strategy to potential
market action upon war breaking out. There is no defined time-frame for military
action to be initiated, which remains another difficult issue for traders. As

Kevin Haggerty mentioned in his column today, daytraders may find safer
opportunities by expanding their analysis to 60-minute charts and trading very
selectively.

There are no economic releases for the day.

The 10-year U.S. Note
is -140 at 114 045.

The Dollar is +0.83 at
100.60.

Gold is -4.90 at 365.00.

Crude OilÂ -0.59 at
34.53.

Volume is at 622,160,000
on the NYSE, and at 657,012,000 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 1.51 ratio. Nasdaq declining issues
over advancing issues are at 1.15, and up volume over down volume is at a 2.52
ratio.

Leading the higher are:

Stocks In The News:

Computer hardware company Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating), +5.24% at 3.23, announced new products that will expand its
lower-cost line.

Retailer Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), +0.22% at
46.90, announced that sales are tracking below expectations, though expects
February sales to rise 2% to 4%.

Insurance company John Hancock Financial
(
JHF |
Quote |
Chart |
News |
PowerRating),
+1.97% at 26.90, has been upgraded by CIBC to “sector outperform” from “sector
perform.”

Homebuilder Toll Brothers
(
TOL |
Quote |
Chart |
News |
PowerRating),
+2.47% at 19.06, was mentioned in Barron’s over the weekend as a case is made
for the stock’s under valuation.

Electric utilities company Constellation
Energy
(
CEG |
Quote |
Chart |
News |
PowerRating), +1.31% at 26.39, has been upgraded by Deutsche Bank to
“buy” from “hold.”

Telecommunications services
company SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), -2.94% at 24.44, is being reported
by the New York times to be in talks to buy Hughes Electronics
(
GMH |
Quote |
Chart |
News |
PowerRating),
+4.72% at 10.21, DirecTV. The company is also is the focus of negative words in
a Financial Times article that speculates the stock may sell off if it
makes a bid for DirecTV.

Hotel company Marriott
International
(
MAR |
Quote |
Chart |
News |
PowerRating), +1.54% at 29.80, warned that it will earn
less than expected for 2003, with profits of $1.85 vs. previous estimates of
$2.05. The company cited weak travel demand and potential war with Iraq as
keeping more people from traveling.

In the pharmaceutical sector,
Wyeth
(
WYE |
Quote |
Chart |
News |
PowerRating), +0.53% at 37.90, has been found innocent by a New Mexico
jury over responsibility for its diet drug Redux causing heart damage. And,
Abbott Laboratories
(
ABT |
Quote |
Chart |
News |
PowerRating), -3.03% at 36.22, has failed to meet a primary
endpoint in a Phase III prostate cancer study that will now be terminated.

Defense and aerospace
contractor Alliant Tech Systems
(
ATK |
Quote |
Chart |
News |
PowerRating), +0.74% at 49.30, was cited in
Barron’s over the weekend as having enough business from the military to make up
for losses from its NASA business.

Waste management services
company Stericycle
(
SRCL |
Quote |
Chart |
News |
PowerRating), +5.36% t 34.98, has been upgraded by UBS
Warburg to “buy” from “neutral.”

danielb@tradingmarkets.com

Here’s What Sparked The Rally

BUY THE FEAR, SELL THE GREED

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