Here’s What The Feds Have Planned For Martha Stewart
Stocks
were slightly higher Tuesday. Neutral to positive comments from Chairman Greenspan helped to offset
the effects of possible accounting woes at IBM
(
IBM |
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PowerRating). The Chairman commented
that “Recent economic statistics and the stock market’s turnaround indicate the
economy has stabilized, but acceleration has not began.” The Chairman also
stated that he sees deflation as a low-probability event. Bonds are up big today
after a three-day pullback. Martha Stewart may face criminal indictment related
to her sale of ImClone, possible being arrested and indicted as soon as
Wednesday.
The Dow Jones Industrial
Average
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gained +4.56 at 971.56. The Nasdaq
(
$COMPQ |
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PowerRating) tacked on 12.81 at
1603.56.
The day’s leading sectors are
Drugs
(
$DRG.X |
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PowerRating), +1.40%, Semiconductors
(
$SOX.X |
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PowerRating),
+2.54%, Software
(
$GSO.X |
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PowerRating), +1.22%, and Disk Drives
(
$DDX.X |
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PowerRating),
+1.45%.
Weak today are Insurance
(
$IUX.X |
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PowerRating), -1.12%, Oil Service
(
$OSX.X |
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PowerRating), -0.98%,Â
Internet
(
$GIN.X |
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PowerRating), -0.89%, and Biotechs
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$BTK.X |
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PowerRating), -0.84%.
The 10-year U.S. Note
was +230 at 119 095.
The dollar was +0.50 at
93.96.
Gold was +0.60 at
365.80.
Crude oil was +0.03 at
30.70.
Volume was heavy at
1,429,144,000 on the NYSE, and at
2,070,272,000 on the Nasdaq.
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of
1.21, and up volume over down volume by a 1.21 ratio. Nasdaq declining issues
over advancing issues at 1.06, and up volume over down volume is at a 1.97
ratio.
Top Dow stocks are:
Intel
(
INTC |
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PowerRating), +0.72 at 21.10,
Caterpillar
(
CAT |
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(
MRK |
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PowerRating) +0.57 at
56.30, Citigroup
(
C |
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PowerRating) +0.88 at 42.25, and Johnson & Johnson
(
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PowerRating)
+0.63 at 53.85.
Stocks in the news:
Brocade Communications
(
BRCD |
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PowerRating)
rose 5% on very high volume. The shares jumped after Merrill
Lynch upgraded the company to “buy” from “neutral”. Merrill also upped its
revenue and earnings estimates for fiscal 2003 and 2004. BRCD closed at 7.26, up
1.22.
Dow component Honeywell
(
HON |
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PowerRating) traded higher after Prudential upgraded the stock to
“buy” from “hold”. Although Prudential does not see a fundamental improvement in
the sector, they based the upgrade on Honeywell’s strong margins in its fire,
security, and systems businesses. HON closed at 26.75, up .35.
Wireless Communications giant
Qualcomm
(
QCOM |
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PowerRating) rose on heavy volume. The company
announced that as part of a $500 million R&D plan, it plans to invest up to $100
million in Chinese companies involved in developing the CDMA technology.
FedEx
(
FDX |
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PowerRating) lost
1.62 after the company announced
that it will cut 12% of its workforce or 14,000 jobs. FDX closed at 62.99.
IBM
(
IBM |
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PowerRating) fell
$3.51on heavy volume. Late yesterday, Big Blue announced that the SEC is
investigating the company’s accounting practices in recognizing revenues in
fiscal 2000 and 2001. IBM closed at 83.82.
Martha Stewart Living
Omnimedia
(
MSO |
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PowerRating) fell by 15% after the company reported that the “Diva of
Domesticity,” Martha Stewart is the target of a criminal investigation and will
be “indicted in the future.” MSO closed at 9.52, down 1.68.