It’s The First Day Of The Quarter, Here’s Where The Money Is Going

April 1, 2003
Daniel Beighley

The
major averages are modestly higher midday on the heels of negative
manufacturing data. Volume is light and market breadth positive, as traders
continue to monitor progress in Iraq. Kevin Haggerty has put us on alert for new
money coming in this first day of the quarter, and so far the big winners are in
the airline sector on news American Airlines has avoided bankruptcy, and the
market leading broker/dealers. All three major averages are trading just above
their key 50-day moving averages.

In economic news, the ISM Index
disappointed at 46.2 vs. expectations of 49.0, and construction spending
fell 0.2% vs. expectations of a 0.8% decline.

The 10-year U.S. Note
is -035 at 114 245.

The dollar is +0.11 at
99.60.

Gold is -1.20 at 334.70.

Crude OilÂ -0.94 at
30.10.

Volume is at 702,712,000
on the NYSE, and at 774,307,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 1.82, and up
volume over down volume by a 1.95 ratio. Nasdaq advancing issues over declining
issues are at 1.22, and up volume over down volume is at a 1.49 ratio.

Strongest in the Dow are:

Stocks in the news:

Airline stocks are up nicely
after the parent of American Airlines AMR Corp.
(
AMR |
Quote |
Chart |
News |
PowerRating), +37.62 at
2.89, announced that it has made deals with its workers’ unions that will
prevent it from filing for bankruptcy.

Metal mining company Alcan
(
AL |
Quote |
Chart |
News |
PowerRating), -1.36% at 27.52, issued a first-quarter profit warning due to higher
costs in fuel, raw materials, and recycled metal.

Car maker General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), -0.95% at 33.30, announced an offer for new car buyers with 0%
financing for 5 years.

Aerospace and defense company
General Dynamics
(
GD |
Quote |
Chart |
News |
PowerRating), +0.40% at 55.29, had its 2003 earnings
estimates cut by Merrill Lynch to $4.70 from $5.51.

Investment services company
Labranche
(
LAB |
Quote |
Chart |
News |
PowerRating), -4.35% at 17.58, has lowered its earnings guidance to
$0.06-0.08 per share vs. a consensus of $0.25.

Electric utilities company
Dominion
(
D |
Quote |
Chart |
News |
PowerRating), +0.20% at 55.48, has been downgraded by UBS Warburg to
“neutral” from “buy”.

Gaming company International
Gaming Technology
(
IGT |
Quote |
Chart |
News |
PowerRating), -1.28% at 80.85, has been downgraded by UBS
Warburg to “neutral” from “buy”.

Internet company Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating), -4.75% at 22.88, has been downgraded by Salomon Smith Barney to
“in-line” from “outperform”.

Online auctioneer eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating),
+1.19% at 86.32, has had its price target raised by CSFB to $100 from $85.

Video retailer Best Buy Inc.

(
BBY |
Quote |
Chart |
News |
PowerRating), -0.59% at 26.81, has lowered its earnings guidance for the
first-quarter to $0.14-0.20 per share vs. a consensus of $0.22. The company also
reported fourth-quarter earnings of $1.10 per share, a penny above consensus
estimates.

Financial services company
Fannie Mae
(
FNM |
Quote |
Chart |
News |
PowerRating), +1.33% at 66.22, has had its growth rate forecast cut
by Morgan Stanley to 11% from 13%, and has had its price target lowered to $92
from $100.

From TM’s Implosion List,
tobacco company RJ Reynolds
(
RJR |
Quote |
Chart |
News |
PowerRating), -6.63% at 30.12.

danielb@tradingmarkets.com

It’s The First Day Of The Quarter, Here’s Where The Money Is Going

BUY THE FEAR, SELL THE GREED

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