Here’s Where The Nasdaq Found Support

July 25, 2003
Vincent Mao

Stocks are
mixed this midday. The major indices are
all currently mixed after some early morning choppy action. Positive economic
reports on spending and the housing sector are driving the Dow and S&P higher.
Meanwhile, the Nasdaq is currently red after weak results from KLA Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating)
and a weak sales forecast from JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating). A near-5% loss in
Internet auction site Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) are also weighing on the Nasdaq. The
Nasdaq is still hovering around the 1700 level with its next area of support
coming from its intermediate-term trendline at 1675. Bonds are rebounding today
after yesterday’s loss. The dollar is lower while gold almost reached a
five-week high.Â

In economic news, Durable
Goods Orders in June rose by a healthy 2.1% compared to an expected rise of
1.2%. This was the biggest jump in durable orders since February. Existing
Home Sales in June slipped by 0.3% to an annual rate of 5.83 million units.
Economists had expected a rise to 6 million units. Lastly New Home Sales
jumped 4.7% to a record annual rate of 1.16 million units. Economists had
expected an annual rate of 1.11 million units.Â

The 10-year U.S. Note
is +005 at 113 095.

The dollar is -0.51 at
95.06.

Gold is +1.20 at 363.50.

Crude Oil -0.05 at
30.17.

Volume is 703,000,000 on
the NYSE, and 886,000,000 on the Nasdaq.

Market breadth is mixed,
with NYSE advancing issues over declining issues by a 1.14, and up volume over
down volume by 1.14. Nasdaq declining issues over advancing issues at 1.15, and
down volume over up volume at 1.59.

Top Dow stock(s) are:

Stocks in the news:

Communications and information
services company Alltel
(
AT |
Quote |
Chart |
News |
PowerRating) is trading higher by 1.7% after Deutsche
Bank upgrade the company from “sell” to “hold”. Deutsche Bank based the upgrade
on the company’s turnaround efforts during the second quarter.Â

Internet automotive services
company Autobytel
(
T |
Quote |
Chart |
News |
PowerRating) is off by more than 6% despite reporting
second-quarter results in line with expectations. In its latest quarter, the
company earned 3 cents a share compared to a loss of 2 cents a share in the
year-ago quarter. Revenues rose by 4.3% to a company record of $21.7 million.Â

Aerospace giant Boeing
(
BA |
Quote |
Chart |
News |
PowerRating)
is only fractionally lower after recovering for an earlier 6+% loss. The shares
are under pressure after the Air Force took away seven satellite launches from
the Dow component as punishment for stealing sensitive documents. The $1 billion
worth of business will be given to Lockheed Martin
(
LMT |
Quote |
Chart |
News |
PowerRating). Shares of Lockheed
are up a fraction. Boeing is also considering shutting down production of its
757 jets.Â

Shares of California Pizza
Kitchen
(
CPKI |
Quote |
Chart |
News |
PowerRating) are off by more than 16% on very heavy volume after the
resignation of its CEO. Late yesterday the company reported second-quarter
results of 23 cents a share or flat compared to last year’s level and inline
with estimates. The company also announced the resignation of its CEO Fred Hipp.
In addition, the company lowered full-year estimates to between 88 to 91 cents a
share from its earlier forecast of 98 cents to $1.02 a share.Â

Internet auctioneer Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) is trading lower by 4.5% despite reporting better-than-expected
second-quarter results. The company earned 33 cents a share compared to 19 cents
a share in the year-ago quarter. Revenues also jumped by 91% to $509.3 million.
Excluding items, Ebay earned 37 cents a share, topping consensus estimates of 35
cents a share. The company is expecting full-year results of $1.47 a share on
revenues of $2.08 billion or slightly higher than analysts’ estimates of $1.46 a
share on revenues of $2.09 billion.Â

Fiber optics equipment maker
JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating) is lower by almost 15% on weak sales projections.
Late yesterday, the company reported a fourth-quarter loss of 4 cents a share
compared to a loss of 76 cents a share in the year-ago period. Excluding items,
the company lost 2 cents a share or a penny better than analysts’ estimates.
However the shares are under pressure today as the company expects first-quarter
revenues between $145 to $155 million compared to analysts’ estimates of $166
million.Â

Semiconductor equipment maker
KLA Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating) is trading lower by 2.4% after the company
reported lower but in line results. The company reported earnings of 15 cents a
share compared to 23 cents a share in the year-ago period. Revenues dropped
17.4% to $308.3 million, this was slightly lower than analysts’ estimates of
$309.4 million.Â

Steel producer Nucor
(
NUE |
Quote |
Chart |
News |
PowerRating)
is trading lower by 8% after the company reported disappointing second-quarter
results. The company reported earnings of 11 cents a share compared to 76 cents
a share in the year-ago quarter. Analysts had expected the company to earn 22
cents a share. The company cited higher energy costs, weak nonresidential
construction market, and increased operating costs for the weak results. Nucor
also expects third-quarter results to be between 15 to 20 cents a share compared
to consensus estimates of 39 cents a share.Â Â

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

Vincent Mao

vincentm@tradingmarkets.com

Here’s Where The Nasdaq Found Support

BUY THE FEAR, SELL THE GREED

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