Indices Heading Up In Spite Of Bad News
At the mid-point of trading, the market
averages have attempted to trim their losses sustained from the open. The tone set was earlier in the day when JP Morgan
(
JPM |
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PowerRating) stated that they will cut estimates for 2002-03 and that they will come in below
3Q estimates. This immediately turned the Brokerage and Bank sector negative.
Last night Oracle
(
ORCL |
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News |
PowerRating) reported in line with estimates, but
revenue was light. Oracle’s recovery could be slower than previously thought.
The Trade Balance for July came in better than expected at -$34.6 bln. This lets
on that Q3 GDP estimates could be marked up higher. The CPI came in at 0.3%,
ahead of the 0.2% consensus, but it did not affect the market at all.
Only two sectors are positive so far on the day,
Gold
(
$XAU.X |
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PowerRating) and Tobacco. The weaker sectors are Software
(
$GSO.X |
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Chart |
News |
PowerRating), Airline
(
$XAL.X |
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Chart |
News |
PowerRating), Banking
(
$BKX.X |
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Chart |
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PowerRating),
Broker/Dealer
(
$XBD.X |
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News |
PowerRating), Storage, Retail, Biotech
(
$BTK.X |
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PowerRating), Networking, Wireless, Telecom, Oil
(
$XOI.X |
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Chart |
News |
PowerRating), Natural gas and Semiconductors
(
$SOX.X |
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PowerRating).
The S&P 500
(
$SPX.X |
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News |
PowerRating) is pulling
up off of the worst levels of the day. Initial resistance is at the 862 level,
with secondary resistance at 868. Initial support is at 858 and secondary
support at 952.
Royal Gold
(
RGLD |
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Chart |
News |
PowerRating) is rallying up to
hit a 52-week high with increasing volume. This morning it opened above the
resistance at about 18.50.
L-3 Communications
(
LLL |
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Chart |
News |
PowerRating) is rallying
from the pullback from high. L-3 tested the 50% retracement line (53.85)
drawn from this year’s high and low. L-3 has a
TradingMarkets.com RS3 rating of 90.
Rehabcare Group
(
RHB |
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Chart |
News |
PowerRating) is breaking out
of an ascending triangle with increasing volume. Rehabcare is trading at 25.10,
up 1.71.
Invision Technologies
(
INV2 |
Quote |
Chart |
News |
PowerRating) is
pulling back from the highs to test support, which is the 20-day moving average.
INVN has a
TradingMarkets.com RS3 rating of 98 and an uptrending
ADX of 34.
Abbott Laboratories
(
ABT |
Quote |
Chart |
News |
PowerRating) is breaking
above the 20-day moving average with increasing volume. ABT has a
TradingMarkets.com RS3 rating of 80.
Nasdaq Breadth
Adv: 915Â Â Â Â Â Â UpVol: 1168045
Dec: 2156Â Â Â Â DnVol: 6492043
Net: -1241Â Â Â Â Net: -5323998
NYSE Breadth
Adv: 895Â Â Â Â Â Â UpVol: 15890690
Dec: 2243Â Â Â Â DnVol: 66243989
Net: -1348Â Â Â Â Net: -50353299