Market Keys To Watch For Next Week

September 20, 2002
Daniel Beighley

Price action on the major indexes was
choppy and narrow as it sold off on the open, hit the day’s low by 11:30 a.m. ET,
then grinded higher for the rest of the session.

The indices’ narrow ranges showed
some indecisiveness on heavy volume, though managed to hold key support as
outlined by href=”https://tradingmarkets.com.site/stocks/commentary/cbspersp/09192002-27850.cfm”>Derrick
Hobbs with the Diamonds
(
DIA |
Quote |
Chart |
News |
PowerRating). href=”https://tradingmarkets.com.site/stocks/commentary/tmnw/09132002-27708.cfm”>Next
week will bring more earnings announcements from some key companies and
several important economic report releases.

U.S. Treasury Bonds closed
unchanged at 114 ’08.

In economic news, the Treasury
budget came in at -54.7 billion vs. an expected -$55.0 billion. The market
had no apparent reaction to the news.

Volume was well above average
at 1,739,155,000
on the NYSE, and 1,775,980,000face=Arial size=2> on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.10, and up
volume over down volume by a 1.25 ratio. Nasdaq advancing issues over declining
issues came in at 1.06, and up volume beat down volume by a 1.28 ratio.

style=”mso-bidi-font-size: 10.0pt”>The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>VIX
was -1.61 at 44.55. The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>TRIN
was -1.17 at 0.88size=2>.

Weighing the Dow down, photo giant
Eastman Kodak
(
EK |
Quote |
Chart |
News |
PowerRating), -4.62% at 26.63, was downgraded by Bear Stearns to
“underperform” from “peer perform” based on anticipated moderate growth upon a
recovery of the economy.

Tobacco company Phillip
Morris
(
MO |
Quote |
Chart |
News |
PowerRating), -4.49% at 42.69, sold off after a federal judge certified a
nationwide punitive-damage class-action suit against the industry.

Stocks in the news:

Phone chip maker Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), +9.17% at 28.08, increased its earnings guidance for the fourth
quarter due to increased demand for its chips.

Electric utilities company Duke
Energy
(
DUK |
Quote |
Chart |
News |
PowerRating), -4.76% at 20.40, fell after it issued a profit warning for
2002 and 2003.

Office equipment maker Pitney
Bowes
(
PBI |
Quote |
Chart |
News |
PowerRating), +0.89% at 32.53, was upgraded by Deutsche Securities
to “buy” from “hold.”

Semiconductor maker Micron
(
MU |
Quote |
Chart |
News |
PowerRating), -9.22% at 13.87, had its estimates cut by Bear Stearns based on the
belief that demand for DRAM will not likely rebound for at least two quarters.

Also in the chip business, Texas
Instruments [TXNTXN], -7.33% at 15.78, hit a new 52-week low as Salomon Smith
Barney downgraded the stock to “in-line” from “outperform.”

Electronic instrument and control
company Tektronix
(
TEK |
Quote |
Chart |
News |
PowerRating), +8.29% at 17.10, beat its first quarter
earnings estimates by $0.08 with profits of $0.15 a share.

Discount retailer Costco
(
COST |
Quote |
Chart |
News |
PowerRating), +3.28 at 34.24, was upgraded by Merrill Lynch to “buy” from
“neutral.”

Market Keys To Watch For Next Week

BUY THE FEAR, SELL THE GREED

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