Here’s What’s Propelling The Dow

August 18, 2003
Vincent Mao

Stocks are
higher this midday.Â The power is back on
Wall Street as the three major indices are putting in a healthy, broad-based
rally to start off the week. Chip stocks are leading the pack after market
researcher Gartner Group commented that market conditions for the semiconductor
industry have “improved markedly” and that growth is poised to accelerate. Smith
Barney also had some positive comments on the sector as the firm cited improving
demand for PCs and improvements in the wireless industry.Â Shares of Advanced
Micro Devices jumped more than 11% after technology analyst Fred Hickey’s
positive views on the company’s new line of its 64-bit Opteron chips. Mr. Hickey
sees the new chips as “the most significant threat Intel has ever faced.”

Retail issues are also boosting
stocks today after Lowe’s
(
LOW |
Quote |
Chart |
News |
PowerRating) checked in with better-than-expected
quarterly results and raised guidance. Also, retail giant Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating)
said that weekly sales are in the high end of their 3%-5% range and that last
week’s blackout would have no effect on earnings. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) broke
out of its two-month long trading range. The blue chip index is at its highest
level since last June but is nearing trendline resistance at the 9500 level.
Bonds are higher today while the dollar shot to a two-week high.Â

No economic news to report.
Tomorrow we will have Building Permits, Housing Starts, Treasury Budget, and the
Michigan Sentiment numbers.

The 10-year U.S. Note
is +075 at 110 305.

The dollar is +0.72 at
97.52.

Gold is -4.60 at 360.10.

Crude Oil -0.15 at
30.90.

Volume is 558,000,000 on
the NYSE, and 770,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 1.82, and up over down
volume by 2.72. Nasdaq advancing issues over declining issues at 1.73, and up
volume over down volume at 1.55.

Top Dow stocks are:

Stocks in the news:

Career education provider
Devry
(
DV |
Quote |
Chart |
News |
PowerRating) is higher by 7% after the receiving an upgrade from J.P.
Morgan. Morgan upgraded the stock from “underweight” to “neutral” The firm
believes that new undergraduate student growth could come in higher than
expected.Â Â

Electric utility holding
company First Energy
(
FE |
Quote |
Chart |
News |
PowerRating) is lower by 10% after the company’s system
was identified as the possible culprit of last week’s blackouts. Analysts cite
that the company’s role in the blackouts could impact its stock and credit
ratings. Merrill Lynch also cut its rating from “Buy” to “Neutral”.

Home improvement retailer
Lowes
(
LOW |
Quote |
Chart |
News |
PowerRating) is higher by almost 4% after the company reported
better-than-expected results and raised full-yearÂ guidance. Home Depot’s biggest
rival reported second-quarter results of 75 cents compared to 59 cents in the
year-ago quarter. The company also beat estimates by 6 cents. Revenues jumped
17% to$8.77 billion from $7.49 billion. Looking ahead, the company sees full-year
results between $2.24 to $2.27 per share compared to consensus estimates of
$2.19.Â

Electronics component maker
Vishay Intertech
(
VSH |
Quote |
Chart |
News |
PowerRating) is higher by nearly 5% after UBS upgraded the
stock from “Neutral” to “Buy”. The firm based the upgrade on valuation after the
stock’s recent sell-off on the heels of Vishay’s convertible offering. UBS also
reiterated its $16 price target.Â

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

Vincent Mao

vincentm@tradingmarkets.com

Here’s What’s Propelling The Dow

BUY THE FEAR, SELL THE GREED

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