Here’s Why This Tech Sector Is Showing Relative Strength

April 24, 2003
Daniel Beighley

The
major indexes are in the red midday after a lower open on the heels
of worse-than-expected initial claims. Earnings season continues with upside
surprises from insurers Aetna and WellPoint Health, which both created higher
opens that were met by heavy selling. Insurance stocks are the worst performers
of the day as AIG expresses some fears of the SARS virus hurting its business in
Asia. Showing relative strength on the day, software issues are in the green as
Siebel Systems trades higher after a lower open on met earnings expectations.Â

In economic news, durable
goods rose 2.0% which was better than the loss of 0.6% expected, and
initial claims came in at 455K vs. the expected 425K.

The 10-year U.S. Note
is +225 at 114 215.

The dollar is -0.53 at
98.49.

Gold is +2.50 at 334.00.

Crude OilÂ -0.90 at
25.75.

Volume is at 731,830,000
on the NYSE, and at 846,083,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 1.55, and down
volume over up volume by a 2.35 ratio. Nasdaq declining issues over advancing
issues are at 1.43, and down volume is over up volume by a 1.74 ratio.

Biggest Dow losers are:

Stocks in the news:

Insurer Aetna
(
AET |
Quote |
Chart |
News |
PowerRating),
+1.43% at 49.09, beat its first-quarter earnings by $0.48 with profits of $1.34
per share.

A day after posting impressive
earnings, AT&T
(
T |
Quote |
Chart |
News |
PowerRating), -1.76% at 16.71, was downgraded by UBS Warburg to
“reduce” from “neutral” to beliefs that strong performance in its consumer
business is not sustainable.

Hotel company Marriott
International
(
MAR |
Quote |
Chart |
News |
PowerRating), -0.81% at 35.65, beat its first-quarter earnings by
$0.01 with profits of $0.36 per share. The company has lowered its outlook due
to uncertainty over the effects of the war in Iraq and the SARS virus.

Chip maker Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), -1.55% at 32.47, has beat its second-quarter earnings by $0.02 with
profits of $0.38 per share. The company has also raised its guidance for the
full year 2003.

Also in the chip biz,
KLA-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating), -0.59% at 40.68, has beat its third-quarter earnings
by $0.02 with profits of $0.14 per share. The company has also guided below
consensus for the fourth-quarter.

Software maker Siebel
Systems
(
SEBL |
Quote |
Chart |
News |
PowerRating), +1.15% at 8.73, has reported first-quarter earnings in
line with expectations with profits of $0.01 per share.

Drug maker Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), +0.93% at 57.33, has received FDA approval for its drug-eluting
Cypher stent.

Communications services company
SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), +3.76% at 22.62, has beat its first-quarter
earnings expectations by $0.05 with profits of $0.42 per share.

Air carrier JetBlu
(
JBLU |
Quote |
Chart |
News |
PowerRating), +6.55% at 30.91, has beat its first-quarter earnings
expectations by $0.03 with profits of $0.25 per share.

Paper and paper product maker
International Paper
(
IP |
Quote |
Chart |
News |
PowerRating), -0.81% at 35.43, has beat its first-quarter
earnings by $0.02 with profits of $0.14 per share.

Insurer AFLAC
(
AFL |
Quote |
Chart |
News |
PowerRating),
-12.16% at 30.70, has been downgraded by Merrill Lynch to “sell” from “neutral”
after beating its its first-quarter earnings consensus by $0.02.

Chemical manufacturing company
Cabot Microelectronics
(
CCMP |
Quote |
Chart |
News |
PowerRating), -5.51% at 44.79, has missed its
second-quarter earnings by $0.02 with profits of $0.37 per share.

Computer services company
Fiserv
(
FISV |
Quote |
Chart |
News |
PowerRating), -5.75% at 29.98, has been downgraded by Goldman Sachs to
“underperform” from “in-line”.

Biotech and drug firm
Celgene
(
CELG |
Quote |
Chart |
News |
PowerRating), +2.66% at 27.50, has beat its first-quarter earnings by
$0.03 with profits of $0.01 per share.

Food processor Sara Lee
(
SLE |
Quote |
Chart |
News |
PowerRating), -9.89% at 17.79, has missed its third-quarter earnings expectations
by $0.01 with profits of $0.33 per share. The company has also guided lower for
the full year.

Insurance company WellPoint
(
WLP |
Quote |
Chart |
News |
PowerRating), -0.73% at 73.13, Health has beat its first-quarter earnings
expectations by $0.08 with profits of !1.29 per share.

From TM’s

Momentum List, business services company eResearch Technology
(
ERES |
Quote |
Chart |
News |
PowerRating), +12.09% at 31.70.

From TM’s Implosion List,
electronic retailer Sony Corp.
(
SNE |
Quote |
Chart |
News |
PowerRating), -13.82% at
27.00.

danielb@tradingmarkets.com

Here’s Why This Tech Sector Is Showing Relative Strength

BUY THE FEAR, SELL THE GREED

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