Here’s Where The Nasdaq May Find Support

July 21, 2003
Vincent Mao

Stocks are
moderately lower this midday. The major
indices are starting the week off on a negative note as a third-quarter earnings
warning from Lexmark International
(
LXK |
Quote |
Chart |
News |
PowerRating) as well as Merck’s
(
MRK |
Quote |
Chart |
News |
PowerRating)
lowered sales target of its popular cholesterol drug Zocor are doing a number on
stocks. Nearly every sector is in the red with tech issues taking most of the
punishment. Internet issues are fractionally higher today after Smith Barney
upgraded Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) from “in line” to “outperform”.

In economic news, the index of
Leading Economic Indicators for June rose by an expectedÂ 0.1%. This was
the third straight gain.Â

The 10-year U.S. Note
is -220 at 113 270.

The dollar is -0.37 at
96.45.

Gold is +4.30 at 351.60.

Crude Oil -0.62 at
31.73.

Volume is 586,000,000 on
the NYSE, and 796,000,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by 2.75, and down volume up
down volume by 3.91. Nasdaq declining issues over advancing issues is 2.22, and
down volume over up volume 2.63.

Top Dow stock(s) are:

Stocks in the news:

Business software maker,
Business Objects
(
BOBJ |
Quote |
Chart |
News |
PowerRating) is higher by 13% on more than triple its
average volume after the company said that preliminary second-quarter results
would be 17 to 18 cents a share on revenues of $127 to $127 million. Analysts
had expected the firm to earn 17 cents a share on revenues of $122 million. The
company also announced plans to buy privately held Crystal Decisions for $820
million.Â Â

Dow component 3M
(
MMM |
Quote |
Chart |
News |
PowerRating)
is higher by 3.9% after the company reported second-quarter results that topped
estimates. The company reported earnings of $1.56 a share or 5 cents ahead of
expectations. 3M also raised it full-year outlook from $5.90 to $6.05 compared
to analysts’ estimates of $5.91 a share.Â

Internet portal Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating)
is trading higher by 3.7% after the company received an upgrade from Smith
Barney. Smith Barney upgraded the stock from “in line” to “outperform” on the
belief that the company may put in an upside surprise during the second half of
the year.Â

Checkpoint Software
(
CHKP |
Quote |
Chart |
News |
PowerRating)
is off by 14% after the company reported second-quarter earnings inline with
estimates but down from year-ago levels. Checkpoint reported income of 24 cents
a share compared to 27 cents a share a year ago.Â

Computer printer and peripheral
maker Lexmark
(
LXK |
Quote |
Chart |
News |
PowerRating) is lower by almost 19% after the missed
second-quarter results by a penny. The company reported earnings of 77 cents a
share compared to 67 cents a share a year ago. Looking ahead, the company is
expecting third-quarter results between 63 and 73 cents a share compared to
analysts’ estimates of 80 cents a share. The company cited competition as well
as a weak IT spending environment.Â

Drug giant Merck
(
MRK |
Quote |
Chart |
News |
PowerRating)
is lower by 3.4% after the company reported second-quarter results that missed
estimates by a penny. The New Jersey drug company reported earnings of 83 cents
a share compared to 77 cents a share a year ago. Looking ahead, Merck sees
third-quarter results between $3.40 to $3.47 a share or within the Street’s view
of $3.41 a share. The company also lowered it’s 2003 sales estimate for its
top-selling Zocor drug to $5.4 to $5.7 billion from $5.9 billion.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 May Find Support

BUY THE FEAR, SELL THE GREED

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