Here’s Why Techs Are Outperforming Today

August 11, 2003
Vincent Mao

Stocks are
mixed this midday.Â After last week’s
dominance by Blue Chip issues, the major indices are displaying a little role
reversal. Both the Dow and S&P are slightly lower now after an early rally. The
S&P turned around after hitting resistance near the 985 level. Meanwhile the
Nasdaq continues to hold its earlier gains after five straight days of losses
last week.

In a survey by the Blue Chip
Economic Indicators, economists expect the economy to grow at 3.7% in the
current quarter and 3.8% in the fourth quarter. Last month’s third-quarter
forecast was 3.6%.

The 10-year U.S. Note
is -180 at 112 000.

The dollar is -0.54 at
96.03.

Gold is +3.70 at 361.60.

Crude Oil -0.23 at
31.95.

Volume is 526,000,000 on
the NYSE, and 681,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 1.14, and up volume over
down volume by 1.26. Nasdaq advancing issues over declining issues at 1.54, and
up volume over down volume at 3.87.

Top Dow stocks are:

Stocks in the news:

Software maker Adobe Systems

(
ADBE |
Quote |
Chart |
News |
PowerRating) is higher by 5.5% after U.S. Bancorp Piper Jaffray upgraded the
stock from “outperform” to “strong buy”. The firm based the upgrade on positive
industry data, expectations for a strong August quarter, and evidence of new
products within the next four months. Piper Jaffray also set a $40 price
target.Â

InterActiveCorp
(
IACI |
Quote |
Chart |
News |
PowerRating)
is lower by 2.2% on heavy volume after a New York Times article claimed
that the company’s two travel sites Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating) and Hotels.com inflated
profits. The Times article alleged that the company inflated results by
putting the “best spin” and by making them “maddeningly complex”. In addition,
the article questioned the company’s tax accounting. Barry Diller responded by
saying that the article contained “numerous inaccuracies.”

The former head energy trader
for financial services giant Merrill Lynch
(
MER |
Quote |
Chart |
News |
PowerRating) is being
investigated by the US and Canadian authorities for allegedly embezzling $43
million from Merrill Lynch in 2000. According to the US Justice Department,
Daniel Gordon, disguised the theft as an energy trade and sent the money to a
Caribbean-based shell company.

Insurance and financial
services giant Metlife
(
MET |
Quote |
Chart |
News |
PowerRating) is lower by 3% after the company
restated its second-quarter results. Due to improperly deferred expenses, the
company earned 79 cents a share compared to its previously reported 84 cents a
share.

Enterprise software maker
Oracle Systems
(
ORCL |
Quote |
Chart |
News |
PowerRating) is higher by 4.25% after Merrill Lynch upgraded
the stock from “Neutral” to “Buy”. Merrill based the upgrade on the stock’s
limited downside potential. They also believe that the company is in a position
to benefit from a gradual economic recovery.Â

Food service giant Sysco
(
SYY |
Quote |
Chart |
News |
PowerRating) is fractionally higher after the company reported better-than-expected
fourth-quarter results. The company reported earnings of 37 cents a share, up
from 31 cents a share during the year ago quarter. Analysts had expected the
company to earn 35 cents a share.Â

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

Vincent Mao

vincentm@tradingmarkets.com

Here’s Why Techs Are Outperforming Today

BUY THE FEAR, SELL THE GREED

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