Here’s What The Bulls Need To See

January 2, 2003
Daniel Beighley

Buyers
were on the offensive this first trading day of the year, as the
major averages closed up nicely on the session. A better-than-expected ISM
number coupled with good news from JP Morgan helped lift sentiment, with the S&P
500 and Nasdaq returning to their 50-day moving averages, and the Dow still
lagging below this mark. The move was confirmed by strong rallies with
trend-line breaks in the semiconductors, broker/dealers, and retail. Volume was
once again on the light side, taking away some conviction from move. Bulls will
be looking for follow through into tomorrow.

There were no losing sectors.

In economic news, the ISM
said that its index rose to 54.7% for December vs. a reading or 49.2 in
November. A number over 50 indicates expansion. Also, initial jobless claims
came in at 403K vs. expectations of 382K.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was -1 205 at 113 130.

The U.S. Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was +121 at 103.47.

Volume was below
average, with the NYSE coming in at 1,201,357,000 and the Nasdaq at
1,278,137,000.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 3.47, and up
volume over down volume by a 15.01 ratio. Nasdaq advancing issues over declining
issues came in at 2.24, and up volume beat down volume by a 10.36 ratio.

The

VIX was -3.51 at 28.52. The

TRIN was -0.88 at 0.23.

Leading the Dow higher:

Stocks in the news:

Investment bank JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), +6.00% at 25.44, announced that it has settled with 10 of 11
insurance companies related to Enron, who will pay 60 percent of the amount of
the surety contracts.

Also in the financial industry, Citigroup
(
C |
Quote |
Chart |
News |
PowerRating),
+3.29% at 36.35, announced it will acquire 5% of Shanghai Pudong Development
Bank for $72.5 million, as the firm looks to enter China’s growing banking
sector.

Wireless outfit AT&T Wireless
(
AWE |
Quote |
Chart |
News |
PowerRating), +10.44% at
6.24, was upgraded by RBC Capital Markets to "sector perform" from "underperform."

Software company CheckPoint Software
(
CHKP |
Quote |
Chart |
News |
PowerRating),
+8.32% at 14.05, was upgraded by CIBC World Markets to "sector outperformer"
from "sector performer."

Networking company Cisco
Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating), +4.12% at 13.64 has had its earnings estimates cut by
UBS Warburg due to a weaker-than-expected US market. The firm maintains its
"hold" rating with a price target of $14.50.

Merck
(
MRK |
Quote |
Chart |
News |
PowerRating), +2.89%
at 58.25, has received FDA approval for its hayfever drug Singulair.

Bristol Myers
(
BMY |
Quote |
Chart |
News |
PowerRating),
+3.80% at 24.03, is being reported by the New York Times as an ideal
candidate for a takeover.

Conglomerate General
Electric
(
GE |
Quote |
Chart |
News |
PowerRating), +4.64% at 25.48, will be facing its first strike in 30
years, which will hinder production in US plants. Workers are reacting to a $200
increase in payments towards the company’s managed healthcare plan.

Here’s What The Bulls Need To See

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources