Here’s What’s En Vogue

January 24, 2003
Daniel Beighley

The markets underwent another
round of selling pressure, as a broad-based decline sent the Dow and S&P beneath
their three-month trading ranges. Price action for the session held a downtrend
from bell to bell. Defensive issues were en vogue today, as Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) hit
a five-year high, and bonds put in another session higher. World tensions now
dominate the headlines, with Iraq, North Korea and Venezuela all considered
potential flashpoints. Volume on the session came in slightly below average,
giving today’s move less conviction.

The only positive sector on the
session was gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), +2.32%.

There were no economic releases
for the day.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was +105 at 114 220.

The U.S. Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) wasÂ -0.71 at 99.45.

Volume was slightly
below average, with the NYSE coming in at 1,500,459,000
and the Nasdaq at 1,569,021,000.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 2.89, and down
volume over up volume by a 4.97 ratio. Nasdaq declining issues over advancing
issues came in at 2.63, and down volume beat up volume by a 6.85 ratio.

The

VIX was +4.80 at 35.77. The

TRIN was +0.90 at 1.73.

Leading the Dow down were:

Stocks in the news:

Communications equipment maker Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating), +7.50% at 2.58, beat its earnings estimates as it recorded a smaller
fourth-quarter loss than expected.

Electric utilities company CMS Energy
(
CMS |
Quote |
Chart |
News |
PowerRating), -28.92% at 6.07, announced that it plans to eliminate its dividend
payments as it posts bigger than expected losses for the quarter.

Doughnut retailer Krispy Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating),
-8.75% at 30.75, announced that it will buy bakery chain Montana Mills Bread for
$4.4 million.

Coffee retailer Starbucks
(
SBUX |
Quote |
Chart |
News |
PowerRating),
+14.63% at 22.95, beat its first-quarter earnings expectations by $0.02 with
profits of $0.20 per share. The company was also upgraded by CIBC World Markets
to “sector outperform” from “sector perform.”

Medical equipment and supplies company Varian
Medical
(
VAR |
Quote |
Chart |
News |
PowerRating), +2.46% at 51.10, beat its first-quarter earnings
expectations by $0.06 with profits of $0.30 per share.

Electric utilities company American Electric
(
AEP |
Quote |
Chart |
News |
PowerRating), -4.61% at 25.65, missed its fourth-quarter earnings expectations by
$0.03 with profits of $0.52 per share.

Printer maker Lexmark
(
LXK |
Quote |
Chart |
News |
PowerRating), -0.88% at
60.30, has been upgraded by Merrill Lynch to “buy” from “neutral.”

Online retailer Amazon.com
(
AMZN |
Quote |
Chart |
News |
PowerRating), +1.51% at 22.12, beat its fourth-quarter earnings expectations by
$0.05 with profits of $0.19 per share.

Despite reporting its first
quarterly loss in its history, restaurant company and Dow component McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating), -0.66% at 14.90, was upgraded by Goldman Sachs to “in-line” from
“underperform.”

Also in the sector, Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating), -14.19% at 14.95, has been downgraded by Merrill Lynch to “sell.”
The company’s CEO also stepped down.

Homebuilder Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating), -2.48% at 60.80, beat its first-quarter earnings expectations by
$0.08 with profits of $2.75 per share.

Retailer Dollar Tree
(
DLTR |
Quote |
Chart |
News |
PowerRating), -9.74% at 22.70, missed its fourth-quarter earnings
expectations by $0.01 with profits of $0.76 per share.

danielb@tradingmarkets.com

Here’s What’s En Vogue

BUY THE FEAR, SELL THE GREED

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