Is A Turnaround Tuesday In The Works?

June 9, 2003
Vincent Mao

Stocks
started the week off on a negative note. Following last Friday’s late
reversal, the major indices all ended the day modestly lower, with the Dow back
under 9,000. A warning from Motorola and downgrades in the telecom and software
arenas, as well as Freddie Mac’s sudden change of management and possible
accounting woes all weighed down on the market.

Nearly all sectors are in the
red — the only sector to end in the green was oil services. Biotechs, airlines,
semiconductors, and housing stocks, which led during the rally of the last few
weeks, were the biggest losers of the day. One positive note about today’s
decline was that it was on light volume. Also IBM
(
IBM |
Quote |
Chart |
News |
PowerRating), which had been in
the news concerning accounting practices at its subsidiary, was strong all
day.Â Bonds came out of a two-day pullback. Both gold and the dollar ended
slightly weaker today.

The day’s leading sectors are
Oil Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), +0.41%.

In economic news, Wholesale
Inventories for April came in at -0.1% versus +0.2%.

The 10-year U.S. Note
is +175 at 119 210.

The dollar is -0.18 at
93.38.

Gold is -2.00 at 362.40.

Crude Oil -0.10 at
31.35.

Volume is at
1,300,000,000 on the NYSE, and at 1,800,000,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 2.20, and down
volume over up volume by a 2.13 ratio. Nasdaq declining issues over advancing
issues at 1.81, and down volume over up volume is at a 2.85 ratio.

Top Dow stocks are:

Stocks in the news:

Accredited Home Lenders
(
LEND |
Quote |
Chart |
News |
PowerRating) is higher by 9% on more than quadruple its average volume. The
mortgage company upped its second-quarter and full-year estimates due to
strength in the mortgage business. Accredited sees second-quarter results
between $1.20 to $1.25 from $0.80 to $0.90 a share. Full year forecasts are now
between $3.50 to $3.75 from $2.25 to $2.50.

Freddie Mac
(
FRE |
Quote |
Chart |
News |
PowerRating) is
lower by 13% on heavy volume. The shares are under heavy selling pressure after
several management changes; its chief operating officer was fired, chief
financial officer resigned, and chief executive officer resigned.

Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) is
lower by 4.5% on heavy volume. The company warned that due to the outbreak of
SARS and excess inventories, its second-quarter and full-year results will be
below previous estimates. Motorola now expects second-quarter results excluding
one-time charges to come in at breakeven compared to previous estimates of 3 to
5 cents. Revenues are now expected between $6 billion to $6.2 billion, down from
$6.4 billion to $6.6 billion.

Regeneron Pharmaceuticals

(
REGN |
Quote |
Chart |
News |
PowerRating) is higher by 2.20% on more heavy volume. Banc of America
upgraded the stock to “buy” from “neutral”. The firm based the upgrade on
Regeneron’s VEGF Trap drug.

Vincent Mao

Is A Turnaround Tuesday In The Works?

BUY THE FEAR, SELL THE GREED

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