Here’s What’s Improving

April 1, 2002
Daniel Beighley

The
major indexes were slammed off the opening bell, though regained
their footing by 11 am ET, where an uptrend ensued for the remainder of day. The
Dow and S&P 500 closed negative, with the Nasdaq positive. Computer
hardware, networking, and semiconductor stocks took the top spots, with Japan,
airline, and retail stocks holding the biggest losses.

As concern over violence in the
Middle East took center stage, sector-specific upgrades and downgrades weighed
on market action. In economic news, the employment component rose to 47.5, up
from 43.8. Both numbers exceeded expectations and confirmed the trend of an
improving economy.Â

Market breadth was mostly
negative, with NYSE declining issues over advancing issues by a ratio of 1.18,
and down volume over up volume by a 1.36 ratio. Nasdaq declining issues over
advancing issues came in at 1.24, though up volume beat down volume by a 1.93
ratio. The
VIX
was up 0.73 at 20.05. The TRIN
was down 0.32 at 1.15.

Low volumes
held the Dow and the S&P 500 below its 20-day moving averages for the fifth
day in a row as they closed at the top of their ranges, and the Nasdaq also
managed to close at the top of its range, just under its 20-day MA. The Semiconductor
Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), up 2.47%, closed above its 20-day MA for the first
time in three sessions. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), down
1.39%, also closed for the fifth day in a row below its 20-day MA.

Semiconductor company AppliedÂ Micro
Circuits Corporation (AMCC),
up 9.87% at 8.79, announced the initial shipments of its new full programmable
network processor, the first of its kind in the industry, and was upgraded by
Bank of America to “Buy” from “Market Perform.“
The ISM index rose to 65.3 for a 14-year high, up from 62.8.

Graphic chip maker NVIDIA Corporation (NVDA),
fell 1.64% to
43.63, after an article in Barron’s suggested the company will have a
difficult time meeting earnings and revenue estimates.

Car maker Ford Motor Co. (F),
down 4.60% at 15.73, announced that it might write-down $2 billion for Kwik-Fit,
a U.K. based maintenance business. The company was also downgraded by Prudential
to “Sell” from “Hold.“

Software company Digital River (DRIV),
down 52.05% at 7.10, said that it has completed its purchase of Beyond.com
and raised its forecast
for 2002 earrings. The company was also downgraded by DB Alex Brown to
“Buy” from “Strong Buy.“

Computer hardware maker Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating), up 7.92% at
9.52, benefited from positive comments by Merrill Lynch, who cited
“increased confidence” that the company would meet its revenue and
earnings targets for the fiscal third quarter.

Oil company Exxon Mobil
(
XOM |
Quote |
Chart |
News |
PowerRating), unchanged at 43.83, rose as fears
of violence in the Middle East brought the price of crude oil up.

Wireless phone maker Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating), up 0.96% at 20.94, had its
earnings outlook dimmed by CS First Boston who claimed a negative bias towards
the market will contribute to declining revenue at the company.Â

Here’s What’s Improving

BUY THE FEAR, SELL THE GREED

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