Here’s What’s Poised To Break Out
Stocks are
modestly higher this midday after last
week’s reversal week. Due to the Yom Kippur holiday, volume is below average,
however stocks are higher in anticipation of strong quarterly results for the
third quarter. According to Thomson Financial, profits for S&P 500 companies are
expected to increase 16% — the fastest growth in three years. Market-making
firm Knight Trading
(
NITE |
Quote |
Chart |
News |
PowerRating) raised its third-quarter projections citing
improving trading volumes and strength in its institutional business. Merrill
Lynch
(
MER |
Quote |
Chart |
News |
PowerRating), Lehman Brothers
(
LEH |
Quote |
Chart |
News |
PowerRating), Ameritrade
(
AMTD |
Quote |
Chart |
News |
PowerRating), and ETrade
(
ET |
Quote |
Chart |
News |
PowerRating)
are higher on the news. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) is within 4
points of its high set back on Sept. 19 and could be headed for a breakout.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is +0.38% at 9609.65. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
is +0.46% at 1034.65. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is +0.58% at 1891.64
The day’s leading sectors are
Disk Drives
(
$DDX.X |
Quote |
Chart |
News |
PowerRating), +2.30%, Internet Commerce
(
$ECM.X |
Quote |
Chart |
News |
PowerRating),
+2.22%, Networking
(
$GIP.X |
Quote |
Chart |
News |
PowerRating), +2.17%, Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating),
+2.01%,and Broker/Dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), +1.71%.
Weak today are Healthcare
(
$HMO.X |
Quote |
Chart |
News |
PowerRating), -1.35%, Health Products
(
$RXP.X |
Quote |
Chart |
News |
PowerRating), -0.27%,
Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), -0.14%, and Pharamaceuticals
(
$DRG.X |
Quote |
Chart |
News |
PowerRating),
-0.12%.
No economic releases today.
The 10-year U.S. Note
is -040 at 112 195.
The dollar is -0.93 at
92.60.
Gold is +4.00 at 374.
Crude Oil is -0.30 at
30.37.
Volume is 501,000,000 on
the NYSE, and 729,000,000 on the Nasdaq.
Market breadth is positive,
with NYSE advancing issues over declining issues by 1.64 and up over down
volume by 2.09. Nasdaq advancing issues over declining issues at 1.51, and up
volume over down volume at 3.55.
Top Dow stocks are:
Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating), +1.77% at 74.68,
Altria [MO|MO],
+1.12% at 45.16, Home Depot [HD|HD],
+1.10% at 34, Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating),
+1.02% at 58.08, and Citigroup
(
C |
Quote |
Chart |
News |
PowerRating), +0.93% at 47.55.
Stocks in the news:
Knight Trading
(
NITE |
Quote |
Chart |
News |
PowerRating)
is higher by more than 12% after the market maker raised its third-quarter
projections. Due to improving stock trading volume, the company now sees results
of 16 to 21 cents a share compared to current consensus estimates of 21 cents a
share. According to Knight CEO Thomas Joyce, “Knight’s stronger-than-expected
results for the third-quarter reflect both the improving market volumes and the
progress we are making in all parts of our business”.
Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) is
higher by 7.5% after the company announced plans to spin off its semiconductor
business into a separate company. The company’s chip unit designs and
manufactures semiconductors for cell phones, modems, and other devices.
Enterprise Software maker
PeopleSoft
(
PSFT |
Quote |
Chart |
News |
PowerRating) is higher by 3.4% after the company raised its
third-quarter guidance. Due to benefits from its acquisition of J.D. Edwards and
strong sales, the company now sees revenues of $575 million to $595 million and
earnings of 10 to 11 cents a share. Analysts are currently expecting revenues of
$587.2 million and earnings of 11 cents a share.
Semiconductor materials and
equipment company ATMI
(
ATMI |
Quote |
Chart |
News |
PowerRating) is lower by 8.6% after the company
warned of a loss for the third quarter. Due to weak results from its materials
unit, the company now expects revenues of $58 million and a loss of 33 to 36
cents a share. Consensus estimates are calling for revenues of $63.75 million
and earnings of 2 cents a share..
Casino operator Boyd Gaming
(
BYD |
Quote |
Chart |
News |
PowerRating) is lower by 10.5% after the company warned that its third quarter
results would come in below expectations. Due to weak results from its Stardust
and Par-A-Dise properties, the company now expects to earn between 14 to 16
cents a share compared to consensus estimates of 21 cents a share.
If you have any comments or
questions, please feel free to email me.
vincentm@tradingmarkets.com