Keep Your Eyes On This Potential Breakout

August 29, 2003
Vincent Mao

Stocks are
mixed this midday.Â Equities are quiet
today ahead of the long Labor Day weekend. After a modest early morning rally,
stocks are back to treading water. Currently both the Dow and S&P are slightly
lower while the Nasdaq continued to push its way past the 1,800 level. Mixed
economic reports also surfaced today. Personal spending in July grew at the
fastest pace in four months. The Chicago PMI jumped to a 15-month high as the
index remains comfortably above the 50 mark. However, personal income came in a
little lower than expected. Meanwhile, the final reading of the University of
Michigan’s consumer sentiment reading also came in below expectations. One
sector that may be of interest today are airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating). This index
looks to be on the verge of breaking above resistance at 56.58. Bonds are
slightly lower after rising more than 2 points yesterday.Â

In economic news, Personal
Income in July rose by 0.2% vs. expectations of 0.3% rise. Personal
Spending in July rose 0.8% as expected. The Chicago PMI for August
came in at a reading of 58.9 compared to July’s 55.9. Economists were expecting
a rise to 56.0. Lastly the revised Michigan Consumer Sentiment Index fell
to 89.3 from last month’s 90.2. Economist were expecting a rise to 90.4.

The 10-year U.S. Note
is -030 at 109 255.

The dollar is -0.79 at
98.15.

Gold is +5.20 at 376.80.

Crude Oil -+0.18 at
31.68.

Volume is 491,000,000 on
the NYSE, and 678,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 1.42, and up over down
volume by 1.13. Nasdaq advancing issues over declining issues at 1.23, and up
volume over down volume at 1.29.

Top Dow stocks are:

Stocks in the news:

Drug maker Biovail
(
BVF |
Quote |
Chart |
News |
PowerRating)
is higher by nearly 4% after the FDA approved a new version of its
anti-depression drug Wellbutrin XL. The new version only requires a once-a-day
dosage and has less risk of sexual side effects and weight gain. Wellbutrin XL
is expected to be released by mid-September and will be marketed by
GlaxoSmithKline
(
GSK |
Quote |
Chart |
News |
PowerRating).

Nextel Communications
(
NXTL |
Quote |
Chart |
News |
PowerRating)
is higher by more than 6% after a positive Business Week article. The
article quoted Graham Tanaka of Tanaka Capital Management’s optimistic view that
the stock could double or triple in the next 18 to 24 months and that he expects
a rapid rise in earnings growth.Â

Generic drug maker SICOR
(
SCRI |
Quote |
Chart |
News |
PowerRating) is higher by more than 5% after the FDA gave the company final
approval for its lymphocytic leukemia treatment.Â

Semiconductor equipment maker
Novellus Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating) is lower by 1.9% after giving a
disappointing mid-quarter update. Due to a larger-than-expected $70 million
inventory write-off. For its third quarter, the company is expected revenues
between $215 to $220 million and breakeven earnings. Wall Street is expecting
the company to break even on sales of $220 million.Â

Networking equipment maker
Symbol Technologies
(
SBL |
Quote |
Chart |
News |
PowerRating) is up fractionally after a near 6% loss early
in the session. The company is postponing the filing of its 2002 10-K. The
company said that the filing will be delayed indefinitely due to accounting
issues with regard to the treatment of stock options and revenue recognition.

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

Vincent Mao

vincentm@tradingmarkets.com

Keep Your Eyes On This Potential Breakout

BUY THE FEAR, SELL THE GREED

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