Here’s What’s Number One On Traders’ Agendas

February 10, 2003
Daniel Beighley

Trading was light to start the week as the major averages put in
gains for the day. After an early sell off, news that Iraq will accept U-2 spy
planes to fly over their country helped bring in buyers. Price action rallied
into the close. Number one on traders’ agendas for the week is once again the
wild card of Iraq, and how what seems to be an inevitable war will play out. For
many this means staying out and watching, and for others it means staying on the
watch for unusual volatility.

The day’s biggest losses were
in gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), -3.27%.

There were no economic releases
for the day.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was -130 at 114 055.

The U.S. Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was +0.71 at 100.48.

Volume was once again
on the light side, with the NYSE coming in at 1,209,028,000
and the Nasdaq at 1,207,960,000.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.31, and up
volume over down volume by a 2.01 ratio. Nasdaq advancing issues over declining
issues came in at 1.21, and up volume beat down volume by a 3.24 ratio.

The

VIX was -1.10 at 37.70. The

TRIN was -1.05 at 0.65.

Leading the Dow were:

Stocks in the news:

Computer hardware company Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating), +0.13% at 3.20, announced new products that will expand its
lower-cost line.

Retailer Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), +0.49% at
47.02, said that sales are tracking below expectations, though expects February
sales to rise 2% to 4%.

Insurance company John Hancock Financial
(
JHF |
Quote |
Chart |
News |
PowerRating),
+2.53% at 27.05, was upgraded by CIBC to “sector outperform” from “sector
perform”.

Homebuilder Toll Brothers
(
TOL |
Quote |
Chart |
News |
PowerRating),
+4.73% at 19.48, was mentioned in Barron’s over the weekend as a case is made
for the stock’s under valuation.

Electric utilities company Constellation
Energy
(
CEG |
Quote |
Chart |
News |
PowerRating), +0.49% at 26.18, was upgraded by Deutsche Bank to “buy”
from “hold.”

Telecommunications services
company SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), -2.70% at 24.50, was reported by
the New York times to be in talks to buy Hughes Electronics
(
GMH |
Quote |
Chart |
News |
PowerRating),
+4.61% at 10.20, DirecTV. The company is also is the focus of negative words in
a Financial Times article that speculates the stock may sell off if it
makes a bid for DirecTV.

Hotel company Marriott
International
(
MAR |
Quote |
Chart |
News |
PowerRating), +4.08% at 30.55, warned that it will earn
less than expected for 2003, with profits of $1.85 vs. previous estimates of
$2.05. The company cited weak travel demand and potential war with Iraq as
keeping more people from traveling.

In the pharmaceutical sector,
Wyeth
(
WYE |
Quote |
Chart |
News |
PowerRating), +0.82% at 38.01, was found innocent by a New Mexico jury
over responsibility for its diet drug Redux causing heart damage. And, Abbott
Laboratories
(
ABT |
Quote |
Chart |
News |
PowerRating), -1.09% at 36.94, has failed to meet a primary
endpoint in a Phase III prostate cancer study that will now be terminated.

Defense and aerospace
contractor Alliant Tech Systems
(
ATK |
Quote |
Chart |
News |
PowerRating), +1.85% at 49.85, was cited in
Barron’s over the weekend as having enough business from the military to
make up for losses from its NASA business.

Waste management services
company Stericycle
(
SRCL |
Quote |
Chart |
News |
PowerRating), +5.42% t 35.00, was upgraded by UBS
Warburg to “buy” from “neutral.”

danielb@tradingmarkets.com

Here’s What’s Number One On Traders’ Agendas

BUY THE FEAR, SELL THE GREED

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