Here’s Why The Markets Are Moving

October 9, 2003
Vincent Mao

Stocks are
sharply higher this midday after taking a
break from a five-day winning streak. Positive economic data, Yahoo’s strong
earnings, as well as strong retail sales have buyers in full force. Continuing
on from last week’s surprising jobs data, weekly jobless claims fell to an
eight-month low last week.

Internet media giant Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating)
reported that its third-quarter results doubled from year-ago levels thanks to a
rebound in online advertising. Due to benefits from its acquisition of Overture
(
OVER |
Quote |
Chart |
News |
PowerRating) the company is boosting its fourth-quarter income before
depreciation and amortization to $130 million – $150 million.

The Dow is enjoying
triple-digit gains as the Blue Chip index broke through the 9700 level for the
first time since last June. Tomorrow marks the one-year anniversary of the Dow’s
six-year low. The broader S&P is displaying similar action — however, the 1054
level could provide a level of resistance. Meanwhile, the Nasdaq Composite is
leading the pack today, thanks to strong performances in tech and Internet
issues. Its next level of resistance comes in at around the 1950 area. Bonds are
sharply lower today after the jobless claims figures.

In economic news, Initial
Claims for the week ended 10/04 fell by 23,000 to 382K, economists were
looking for 395K. Export Prices in September fell by 0.1% and Import
Prices rose by 0.2%.

The 10-year U.S. Note
is -220 at 111 230.

The dollar is +0.41 at
92.45.

Gold is -6.60 at 369.40.

Crude Oil is +0.86 at
30.67.

Volume is 815,000,000 on
the NYSE, and 1,170,000,000 on the Nasdaq.

Market breadth is Positive,
with NYSE advancing issues over declining issues by 2.75 and down over up volume
by 4.27. Nasdaq advancing issues over declining issues at 2.75, and up volume
over down volume at 7.76.

Top Dow stocks are:

Stocks in the news:

Specialty children’s apparel
and accessories retailer Children’s Place
(
PLCE |
Quote |
Chart |
News |
PowerRating) is higher by more
than 25% after the company said that its September same-store sales jumped 30%.
Analyst had expected sales to rise only 6.6%. The company also announced that it
is expecting third-quarter results of 40 cents a share compared to year-ago
results of 6 cents a share. Current consensus estimates are calling for 26 cents
a share.

Teen and women’s accessories
retailer Claires Store
(
CLE |
Quote |
Chart |
News |
PowerRating) is higher by 8.5% after the company
raised its third-quarter targets. Thanks to strong sales in August and September
the company now sees earnings of 41 or 42 cents a share compared to its prior
forecast of 31 to 32 cents a share.

Hewlett Packard [HPQ|HPQ|]
is higher by 5.7% after it signed a 10-year deal with fellow Dow component Walt
Disney
(
DIS |
Quote |
Chart |
News |
PowerRating). HP will provide computing services for Disneyworld’s new
attraction, Mission: Space. Additionally Morgan Stanley called HP a “good
short-term trade” and could be in position for an upside earnings surprise.

Retailer Hot Topic
(
HOTT |
Quote |
Chart |
News |
PowerRating)
is higher by 7.6% after the company boosted its third-quarter projections. The
company now sees third-quarter results of 28 cents a share, or 2 cents higher
than its prior forecast. This was the second time in two months that company
raised guidance.

Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) is
higher by more than 12% after the Internet giant reported better-than-expected
third-quarter results. Late yesterday, the company reported its eighth straight
quarterly profit as it earned 10 cents a share, or double its year-ago quarter.
The results topped analysts’ expectations by a penny. Revenues jumped nearly 43%
to $356 million.

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

Vincent Mao

vincentm@tradingmarkets.com

Here’s Why The Markets Are Moving

BUY THE FEAR, SELL THE GREED

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