Here’s What’s Leading The Dow

September 17, 2003
Vincent Mao

Stocks are
mixed this midday. After a seesaw
morning, both the Dow and Nasdaq Composite are squeezing out further gains,
while the S&P 500 is just fractionally lower. The Dow is within 12 points of its
high set back on September 4. A judge’s decision to cut Altria Group’s
(
MO |
Quote |
Chart |
News |
PowerRating)
bond from $12 billion to $6.8 billion is helping to boost the blue chip index.
However, Dupont
(
DD |
Quote |
Chart |
News |
PowerRating) is weighing on the index after the company announced
that its fiscal 2003 results will be at the low end of estimates. Still
continuing its outperformance today, the Nasdaq is in new high ground, thanks to
strong performances by disk drives, computer hardware, and biotech issues.
Energy stocks are lower today after crude oil prices hit a four-month low. The
Department of Energy’s report of rising inventories as well as a record level of
imports are also hurting energy issues.

In economic news, Housing
Starts in August fell by 3.8% to an annual rate of 1.82 million as expected.
Building Permits in August jumped 5.8% to 1.89 million. Economists were
expecting 1.80 million.

The 10-year U.S. Note
is +165 at 112 115.

The dollar is -0.61 at
96.51.

Gold is +1.70 at 376.30.

Crude Oil -0.50 at
27.06.

Volume is 681,000,000 on
the NYSE, and 1,059,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by1.05, and up over down volume
by 1.48. Nasdaq advancing issues over declining issues at 1.23, and up volume
over down volume at 2.44.

Top Dow stocks are:

Stocks in the news:

Drug maker Intermune
(
ITMN |
Quote |
Chart |
News |
PowerRating)
is higher by 4% after the Wall Street Journal reported that the company’s
antiviral drug, Infergen showed promising results in a small Canadian trial.
Although the trial only consisted of 19 patients, the drug is showing early
promise in the battle with the SARS virus.

R.J. Reynolds Tobacco
(
ISIS |
Quote |
Chart |
News |
PowerRating)
is higher by more than 11% after the company announced that it will lay off
2,600 or 40% of its workforce. The layoffs are part of a plan to save the
company $1 billion by 2005. Reynolds will take a $340 million charge which will
be somewhat offset by the cost savings.

Management consulting and
services firm Accenture
(
ACN |
Quote |
Chart |
News |
PowerRating) is lower by 3.5% after the company
announced plans to offer 82 million Class A common shares. The company also
guided fourth-quarter and full-year 2003 results above estimates. Due to an
increase in its outsourcing business, the company sees fourth-quarter results of
25 cents a share vs. consensus estimates of 23 cents a share. Full-year results
are now expected at $1.05 a share vs. consensus of $1.03 a share.

Dupont
(
DD |
Quote |
Chart |
News |
PowerRating) is lower
by nearly 3% after the warned that full-year 2003 results will be at the low end
of its previous estimates. The chemical company is forecasting results of $1.60
vs. consensus estimates of $1.80. Dupont added that its businesses didn’t see
evidence of a “broad turnaround in industrial demand”.

Home builder KB Homes
(
KBH |
Quote |
Chart |
News |
PowerRating)
is fractionally lower after reporting third-quarter results that topped
expectations. For its fiscal third quarter, the company earned $2.33 a share
compared to $1.95 in the year-ago quarter. The results topped estimates by 11
cents. Revenues rose 12% to $1.44 billion.

Publisher New York Times
(
NYT |
Quote |
Chart |
News |
PowerRating) is lower by 4% after the company lowered its third-quarter targets.
The company now expects results between 30 to 32 cents a share compared to
current consensus estimates of 39 cents.

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

Vincent Mao

vincentm@tradingmarkets.com

Here’s What’s Leading The Dow

BUY THE FEAR, SELL THE GREED

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