Here’s What’s Helping Stocks Today

July 7, 2003
Vincent Mao

Stocks
are sharply higher this midday. Stocks are starting off the week on a
very positive note as the major indices lit off some fireworks of their own. At
one point, the Dow was up over 190 points and the Nasdaq broke above the 1,700
level for the first time since last May. Fueled by the continuing sell-off in
bonds and a rumor of a $10 billion dividend payout from Microsoft
(
MSFT |
Quote |
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PowerRating),
stocks are staging a broad-based rally assault. In addition, optimism about
second-quarter profits are also boosting shares. Nearly a quarter of companies
within the S&P 500 index will report results over the next two weeks. Tech
stocks are again in the lead today with semiconductor issue up over 5%. Tech
stocks are benefiting from a positive Goldman Sachs survey on IT spending.
Warnings from BMC Software
(
BMC |
Quote |
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PowerRating) and Schering Plough
(
SGP |
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News |
PowerRating) and last
Thursday’s dismal report on the job market are failing to have a negative effect
on stocks. Bonds are again lower and are near a two-month low. Meanwhile the
dollar is near a two-month high.Â

No economic news to report
today. Tomorrow we will have Wholesale Inventories for May.Â Â

The 10-year U.S. Note
isÂ -135 at 116 090.

The dollar is +0.95 at
95.85.

Gold is – 2.60 at
348.70.

Crude Oil -0.36 at
30.06.

Volume is at 656,000,000
on the NYSE, and at 916,000,000 on the Nasdaq.

Market breadth is positive
on the NYSE and on the Nasdaq, with NYSE advancing issues over declining
issues by a ratio of 2.10, and up volume over down volume by a 4.56 ratio.
Nasdaq advancing issues over declining issues at 2.63, and up volume over down
volume is at 7.31 ratio.

Top Dow stocks are:

Stocks in the news:

BMC Software
(
BMC |
Quote |
Chart |
News |
PowerRating)
is trading lower by 7.8% on heavy volume after the company warned that its
first-quarter results would come in below previous forecasts. The software maker
now sees results coming in between 1 to 4 cents a share on revenues of $305 to
$312 million. Analysts had expected the company to earn 8 cents a share on
revenues of $331 million.Â

Cirrus Logic
(
CRUS |
Quote |
Chart |
News |
PowerRating)
is lower by 4.3% on heavy volume. The company announced that it expects
first-quarter sales to be at low end of its previous $40 million to $45 million
forecast. Analysts had expected revenues of $42.4 million. Cirrus also announced
that its CFO Steven Overly had resigned for personal reasons.Â

Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) is
higher by 3.5% after a French newspaper Les Echos reported that the
software giant would pay roughly $10 billion in dividends. Microsoft has not
commented about the rumor.Â

Schering Plough
(
SGP |
Quote |
Chart |
News |
PowerRating)
is lower by 3.8% after the company warned that second -uarter results would come
in below expectations. The drug maker now sees earnings of 12 cents a share
compared to analysts’ estimates of 18 cents a share. Schering cited increasing
competition for its popular Clarinex and Nasonex products.Â

Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) is
trading higher by 2.5% after J.P. Morgan lifted the company’s second-quarter and
fiscal 2003 forecast. J.P. Morgan now sees Yahoo’s second-quarter results up by
a penny to 9 cents a share and full-year results to 37 cents from 33 cents a
share. Yahoo will report on Wednesday, July 9.Â

vincentm@tradingmarkets.com

Here’s What’s Helping Stocks Today

BUY THE FEAR, SELL THE GREED

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