Here’s What’s Supporting The Dow And S&P

July 9, 2003
Vincent Mao

Stocks are
lower this midday.
The major indices are hovering near the lows of the day this morning
as stocks are again pulling back after recent highs. The Dow is currently the
biggest loser of the day as the Blue Chip index is being dragged down by Altria
Group’s
(
MO |
Quote |
Chart |
News |
PowerRating) legal and competitive worries. Altria does represent 3.38% of
the index. A downgrade on Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating) is also weighing on the index. Tech
stocks are faring better today, thanks to some positive comments from Cisco CEO
John Chambers. Chambers commented that he expected IT spending to recover in the
next two to four months, and new investments by Internet and telecom firms in
the next two to six quarters. However officials from Cisco later said that
Chamber’s statements had been misinterpreted. Cisco spokesperson Robyn
Jenkins-Blum said that Chamber meant that firms would start spending two to four
months after their businesses turnaround. Shares of Cisco are better by 1%. Both
the S&P and the Dow are finding support from the trendline drawn from the March
12 low, a close below this would be negative. Bonds are higher today after a
near two-month low. Meanwhile the dollar is pulling back and gold is higher
after hitting a two-month low.

In economic news, Wholesale
Inventories in May fell 0.3% vs. an expected gain of 0.2%..

The 10-year U.S. Note
is +040 at 116 080.

The dollar is +0.07 at
96.12.

Gold is 1.20 at 345.60.

Crude Oil +0.15 at
30.40.

Volume is at 785,000,000
on the NYSE, and at 1,372,000,000 on the Nasdaq.

Market breadth is negative
on the NYSE and mixed on the Nasdaq, with NYSE declining issues over
advancing issues by a ratio of 1.60, and up volume over down volume by a 1.28
ratio. Nasdaq advancing issues over declining issues is at 1.07, and up volume
over down volume is at 1.45 ratio.

Top Dow stocks are:

Stocks in the news:

Halliburton
(
HAL |
Quote |
Chart |
News |
PowerRating) is
higher by 3.8% on heavy volume after a Financial Times report stated that
pending asbestos legislation being considered by the Senate could save the
company $3.5 billion. J.P. Morgan also upgraded the oil giant from "neutral" to
"overweight".

Helen of Troy
(
HELE |
Quote |
Chart |
News |
PowerRating)
is higher by18% on very heavy volume after the company reported
better-than-expected first-quarter results. The personal-care products maker
reported income excluding a one-time gain of 42 cents a share vs. estimates of
24 cents a share. The company also raised full-year guidance to $1.75 to $1.80 a
share from its previous forecast of $1.40 to $1.50. In addition, its board of
directors approved a plan to buy back up to 3 million shares.

Movie Gallery
(
MOVI |
Quote |
Chart |
News |
PowerRating)
is higher by 4% after the company raised its second-quarter outlook. The movie
rental company now expects earnings of at least 31 cents a share compared to its
previous forecast of 26 to 29 cents a share.

Altria Group
(
MO |
Quote |
Chart |
News |
PowerRating) is
lower by 8% on legal and competitive worries. An Illinois appellate panel could
overturn a $12 billion appeal that was favorable to Altria. Also there is
speculation that a potential merger between R.J. Reynolds and British-American
could develop.

Logitech
(
LOGI |
Quote |
Chart |
News |
PowerRating) is
lower by 27% on extremely heavy volume after the company warned that its
first-quarter income would be about half of its previous forecast. The company
now sees income coming in between $7 to $8 million compared to $14 million.

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

Vincent Mao

Here’s What’s Supporting The Dow And S&P

BUY THE FEAR, SELL THE GREED

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