Keep Your Eyes On This Trendline

August 4, 2003
Vincent Mao

Stocks are
lower this midday.Â Stocks are starting
off the week on a negative notes as a better-than-expected factory orders report
failed to inspire buyers. The major indices are off the lows of the session as
the Dow is recovering from a 100-point deficit. The tech-heavy Nasdaq is leading
the major averages lower today, thanks in part to selling in Internets, biotechs,
and computer hardware issues. The index is also under the psychological 1700
level. In addition, it has also broken below a five-month long trendline drawn
from the March 12 low.Â Bonds are bouncing back today after a three-week sell off
that brought interest rates to a one-year high. Gold is higher after last week’s
sell off and the dollar is weaker today.

In economic news today,
Factory Orders in June rose by 1.7% or better than an expected rise of
1.5%.Â

The 10-year U.S. Note
is +250 at 111 105.

The dollar is -0.52 at
96.35.

Gold is +0.39 at 350.

Crude Oil +0.20 at
32.33.

Volume is 631,000,000 on
the NYSE, and 847,000,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by 2.87, and down volume over
up volume by 3.17. Nasdaq declining issues over advancing issues at 2.22, and
down volume over up volume at 1.65.

Top Dow stocks are:

Stocks in the news:

Consumer products maker
Church Dwight
(
CHD |
Quote |
Chart |
News |
PowerRating) is higher by 2.12% after the company reported
second-quarter results that topped estimates. The maker of Arm & Hammer baking
soda earned 59 cents a share compared to 45 cents in the year-ago period.
Excluding gains, the company earned 46 cents a share, or 4 cents above analysts’
estimates. Church Dwight also raised full-year guidance from between $1.77 to
$1.81 to $1.84 to $1.86.Â

Networking equipment giant
CSCO
(
CSCO |
Quote |
Chart |
News |
PowerRating) is fractionally lower despite receiving an upgrade from SG
Cowen. Cowen upgraded the stock from “outperform” to “strong buy” on the belief
that revenues will accelerate as non-core business segments will increase and
make up a bigger piece of the company’s revenues. Cisco is also set to report
fourth-quarter results on Tuesday. Analysts are looking for 15 cents a share.

Drug maker CV Therapeutics

(
CVTX |
Quote |
Chart |
News |
PowerRating) is off by 25% after the company announced that the FDA has
cancelled a September meeting to discuss the company’s angina drug, Ranexa.
However, a company spokesperson said that the cancellation of the meeting will
not affect the October 30 deadline for FDA approval.

Graphics chip maker NVIDIA

(
NVDA |
Quote |
Chart |
News |
PowerRating) is higher by 3.1% after the company announced that it will buy
privately held MediaQ for $70 million in cash. MediaQ makes graphics and
multimedia technologies for mobile devices. NVIDIA CEO Jen-Hsun Huang added,
“This acquisition supports NVIDIA’s strategy of extending our platform reach and
accelerates our entry into the wireless mobile markets.”

Steel producer U.S. Steel

(
X |
Quote |
Chart |
News |
PowerRating) is higher by 4.8% after the company reported a
smaller-than-anticipated loss. For its second quarter the company reported a
loss of 51 cents a share compared to a profit of 28 cents a share in the
year-ago quarter. Excluding one-time charges, the company lost a penny a share
compared toÂ consensus estimates that called for a loss of 6 cents a share. Â

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

Vincent Mao

vincentm@tradingmarkets.com

Keep Your Eyes On This Trendline

BUY THE FEAR, SELL THE GREED

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