Here’s What We Need For A Turnaround Tuesday

September 23, 2003
Vincent Mao

Stocks are
slightly this midday. After yesterday’s
slide, the major indices are trying for a “Turnaround Tuesday”. Both the Dow and
S&P are slightly higher but lagging the gains in the Nasdaq. The tech-heavy
index is recovering about of third of its losses from yesterday, thanks to
buying in Internet, disk drive, and computer hardware issues. However, absent
today are the semiconductors which could be headed to test support at the 440
level.

No economic reports today as
today’s focus is more on corporate earnings. In showing that the capital markets
are on the comeback trail, three big brokerage houses, Morgan Stanley
(
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Goldman Sachs
(
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(
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better-than-expected quarterly results. Morgan Stanley reported third-quarter
results that more than doubled from year-ago levels as strong results from bond
trading helped to offset softness in its investment banking business. Goldman
Sachs reported its fifth straight quarter profit and topped estimates by 10

cents. Lehman Brothers
(
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as the company earned $1.81 a share compared to 70 cents in the year-ago
quarter. Shares of Morgan Stanley and Lehman Brothers are higher by 0.17% and
1.26% respectively, while Goldman is trading lower by more than 3%.

No economic reports today.

The 10-year U.S. Note
is -005 at 112 030.

The dollar is -0.06 at
94.15.

Gold is -1.70 at 386.60.

Crude Oil 0.07 at 26.96.

Volume is 667,000,000 on
the NYSE, and 1,000,000,000 on the Nasdaq.

Market breadth is mixed,
with NYSE advancing issues over declining issues by 1.31 and up over down volume
by 2.67. Nasdaq advancing issues over declining issues at 1.42, and up volume
over down volume at 2.62.

Top Dow stocks are:

Stocks in the news:

Drug maker Adolor
(
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is higher by nearly 22% after the company reported positive results from its
clinical trial of its Entereg drug which is used to treat intestinal blockage.
Adolor commented “Entereg had a statistically significant improvement in the
time to recovery of gastrointestinal function after surgery than…placebo.”

Hillenbrand Industries
(
HB |
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PowerRating)
is higher by 4.8% after the company raised its fourth-quarter and full-year
estimates. The health care and funeral services company now see fourth-quarter
results excluding items between $1.08 to $1.11 a share up from its previous
projection of $1.03 to $1.08 a share. Current consensus estimates are $1.06 a
share. Full-year results are now expected between $3.95 to $3.98 a share
compared to a previous forecast of $3.90 to $3.95 a share.

Jet Blue [JBLU|JBLU|] is
flying higher by 2.3% despite being sued by a group of passengers for giving
away passenger information. Late yesterday, a class-action lawsuit filed in Utah
alleges the company of fraud, misrepresentation, and invasion of privacy.

Goldman Sachs
(
GS |
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PowerRating) is
lower by 3.5% despite reporting better-than-expected third quarter results.
Thanks to strength in its asset management, and equities business, the company
reported earnings of $1.32 a share compared to $1 a share in the year-ago
quarter. The results topped analysts’ estimates by 5 cents.

Verizon Communications
(
VZ |
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PowerRating)
is lower by nearly 5% after the communications company lowered its full-year
2003 outlook. Due to weak demand, regulatory constraints, and rising labor
costs, the company now sees results between $2.56 to $2.60 a share, down from
its previous forecast of $2.70 to $2.80.

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

Vincent Mao

vincentm@tradingmarkets.com

Here’s What We Need For A Turnaround Tuesday

BUY THE FEAR, SELL THE GREED

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