Here’s What We’re Waiting For
The
market is a mixed bag at mid day, as traders await the release of
President Bush’s economic stimulus plan. The Dow and S&P 500 have failed to
take out yesterday’s high, while the Nasdaq pushes higher, and now flirts with
its 200-day moving average. Meanwhile the 10-year note has gained ground in a
vote of confidence for a defensive strategy against stocks.
Dow Jones Industrial Average
(
$INDU.X |
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PowerRating) is -0.17% at 8,758.76 The S&P 500
(
$SPX.X |
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PowerRating) is
-0.38% at 925.48. The Nasdaq
(
$COMPQ |
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PowerRating) is +0.63% at 1,430.34.
Leading to the upside are
Internet
(
$MOX.X |
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PowerRating), +2.77%, software
(
$GSO.X |
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PowerRating), +2.69%,
and computer hardware
(
$GHA.X |
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PowerRating), +2.29%.
The day’s laggards are oil
service
(
$OSX.X |
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PowerRating), -4.07%, oil service
(
$OSX.X |
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PowerRating), -3.17%,
and oil
(
$OIX |
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PowerRating), -2.81%.
In economic news, factory
orders declined 0.8% vs. expectations of a 0.7% decline.
The 10-year U.S. Note
is +110 at 113 165.
The Dollar is +0.51 at
102.90.
Gold is -5.40 at 346.70.
Crude Oil is -0.85 atÂ
31.25.
Volume is at 776,668,000
on the NYSE, and at 969,962,000 on the Nasdaq.
Market breadth is mostly
negative, with NYSE declining issues over advancing issues by a ratio of
1.61, and down volume over up volume by a 1.24 ratio. Nasdaq declining issues
over advancing issues came are at 1.21, and up volume is over down volume by a
2.42 ratio.
Dow leaders are:
Phillip Morris
(
MO |
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PowerRating),
+3.59% at 41.07, International Business Machines
(
IBM |
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PowerRating), +2.17% at
85.41, and Hewlett Packard
(
HPQ |
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PowerRating), +1.53% at 19.95.
Dow laggards are:
SBC Communications
(
SBC |
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PowerRating),
-3.21%, Boeing Co.
(
BA |
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PowerRating), -2.29% at 33.35, and Exxon Mobile
(
XOM |
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PowerRating),
-2.23% at 35.57.
Stocks in the news:
Prudential has upgraded the
chip stocks Altera
(
ALTR |
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PowerRating), +2.99% at 14.46, and Xilinx
(
XLNX |
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PowerRating),
+5.82% at 25.65, with the belief that the companies will be able to grow faster
than the industry average.
Elsewhere in the chip sector,
National Semiconductor
(
NSM |
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PowerRating), +3.39% at 16.78, Teradyne
(
TER |
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PowerRating),
+2.02% at 15.63, Advanced Micro Devices
(
AMD |
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PowerRating), +1.82% at 7.29, and
Micron Technology
(
MU |
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PowerRating), +0.47% at 10.61.
In the data storage business,
EMC Corp.
(
EMC |
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PowerRating), +9.12% at 7.42 has pre-announced better than
expected fourth-quarter results, and Storage Tech
(
STK |
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PowerRating), -0.53% at
24.40, has raised its fourth-quarter earnings guidance to above $0.45 per share
vs. a consensus of $0.36 per share.
Software and programming
company Mercury Interactive
(
MERQ |
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PowerRating), +10.97% at 36.71, has raised its
earnings guidance for the fourth-quarter to $0.25-0.27 per share vs. a consensus
of $0.20 per share. The company has also been downgraded by Prudential to
“hold.”
Jeweler Tiffany & Co.
(
TIF |
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PowerRating),
-1.84% at 25.05, has posted disappointing holiday sales, and has lowered its
fourth-quarter earnings outlook to $0.57-0.62 per share vs. previous guidance of
$0.60-0.65 per share.
Computer hardware company
Tech Data
(
TECD |
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PowerRating), -1.85% at 29.15, has had coverage initiated on it by
Lehman Brothers at “underperform.”
Tobacco company Phillip
Morris
(
MO |
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PowerRating), +3.72% at 40.98, rallied after the company announced it is
was going to lower its prices to better compete with bargain cigarettes.
Electronic retailer Circuit
City
(
CC |
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PowerRating), +4.79% at 7.65, announced that its December same store sales
fell 6% due to a weak market and competition.
Drugstore retailer Ride Aid
(
RAD |
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PowerRating), +6.53% at 3.10, said that their same-store sales were up 5.7% from a
year ago, with pharmacy sales up 9.1%. Also in the sector, CVS
(
CVS |
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PowerRating),
-2.50% at 24.98, said their same-store sales were up 4%, with pharmacy sales up
7.6%.