Here’s Where The Dow And Naz Find Support

April 4, 2002
Daniel Beighley

The major averages held tight
ranges throughout the day with little price change at the close. Airline,
retail, computer hardware, and transportation stocks made the greatest advances,
with software, internet, oil, and pharmaceutical issues showing the greatest
declines.

Disappointing earnings news and
further downgrades inspired the bears, as continued violence in the Middle East
stirred worries. In economic news, weekly jobless claims hit a four-month
high at 460,000 with a 64,000 increase. The Labor Department attributed the rise
to re-applications for extended benefits from people already unemployed,
reducing the shock value of the number. Economists were looking for 377,000
jobless claims.

Market breadth was neutral,
with NYSE advancing issues over declining issues by a ratio of 1.24, and down–volume
over up–volume
by a 1.10 ratio. Nasdaq advancing issues over declining issues came in at 1.06,
and up–volume
over down–volume
by a 1.06 ratio. The
VIX
was up 0.10 at 21.74. The TRIN
was down 0.71 at 1.36.

Another day of below-average volume
brought the Dow down to retest its 50-day MA as well as its upward trendline on
the daily chart, as the S&P 500 made its second close in a row below its
50-day MA, and the Nasdaq,
still below its major MAs,
flirted with is upward trendline on the daily chart. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
up 1.16%, remains in a consolidation between its 20–
and 50-day MAs. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), down 0.10%,
re-tested its 50-day MA though managed to close above it.Â

Specialty retailer Bed Bath & Beyond Inc.
(BBBY),
up 6.58% at 33.67, announced earnings ofÂ 28 cents a share, up 29%
from a year ago earnings and higher than the analysts‘
consensus estimate of 22 cents.

Software
company Compuware Corporation (CPWR),
down 25.40% at 8.28, said it will report earnings of 7 or 8 cents a share, half
of what analysts were expecting.

Internet security software company CheckPoint
Software (CHKP),
down 19.62% at 22.07, warned that its first
quarter earnings
will come in below expectations due to a weak market for technology spending.

Drug maker Bristol-Myers Squibb (BMY),
down 14.72% at 32.15, announced first quarter
profits of no more than 47 cents a share, well short of analysts’ expectations
of 56 cents a share. The stock has also been on TM’s proprietary Implosion
List.

Computer hardware maker Dell Computer (DELL),
up 2.13% at 26.75, reported sales of $7.9 billion, beating estimates of $7.65
billion to $7.82 billion.

Software maker Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), up 0.21 at 56.45, was upgraded
by A.G. Edwards to “buy” from “hold” with the belief that
valuation is once again attractive. Microsoft also announced the departure of
its president and chief operation officer, Rick Belluzo.

Brokerage Knight Trading
(
NITE |
Quote |
Chart |
News |
PowerRating), down 0.13 at 7.14, said that a
lack of volatility in the market has hurt business, and it expects to lose as
much as 12 cents a share for the first quarter, compared to previous estimates
of 12 cents a share worth of profits.

Hard drive maker Western Digital
(
WDC |
Quote |
Chart |
News |
PowerRating), up 10.00% at 6.60,
announced that it expects to beat estimates for the first quarter with earnings
of 8 cents a share. Previous expectations were for 4 cents a share.

Networking company Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating), down 2.52% at 4.24, had
its credit rating downgraded by Moody’s to junk status due to decreased spending
by telecommunications carriers.

Also from TM’s proprietary Implosion
List, computer services company Electronic Data Systems
(
EDS |
Quote |
Chart |
News |
PowerRating)
fell 2.87% at 54.05.Â

Here’s Where The Dow And Naz Find Support

BUY THE FEAR, SELL THE GREED

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