Market Refueling

The markets were scattered today with
the Dow and S&P 500 tracing in and out of positive territory then
selling-off for a down close. The Nasdaq made and held gains for most of the day
before it, too, succumbed to heavy selling pressure yet held for a slight gain.
Financial stocks showed strength while the overall sector action was mixed.


size=2> The Dow Jones Industrial Average
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lost
0.38% to closestyle=”mso-bidi-font-size: 10.0pt”> 9,554.37;
t
style=”mso-bidi-font-size: 10.0pt”>he S&P
500
[SPX.X| SPX.X] closed down
size=2>0.30%size=2> at 1,115.45;
and t
style=”mso-bidi-font-size: 10.0pt”>he Nasdaq

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closed up
size=2>0.13% atsize=2> 1,837.53style=”mso-bidi-font-size: 10.0pt”>.


The markets were fed two pieces of
positive economic data today that failed to spur them on: Third-quarter non-farm
productivity rose by 2.7% compared to the 1.8% expected, and the Commerce
Department reported inventories dropped by 0.1% compared to the 0.4% expected.
Who would have guessed the markets to be less enthusiastic over good news
compared to the recent rallies on bad news?


style=”mso-bidi-font-size: 10.0pt”>NYSE advancing issues were 1,577style=”mso-bidi-font-size: 10.0pt”>, with up-volume at 610,983,000style=”mso-bidi-font-size: 10.0pt”>; declining issues were 1,557style=”mso-bidi-font-size: 10.0pt”>, with down-volume at 788,500,000style=”mso-bidi-font-size: 10.0pt”>. Nasdaq advancing issues were
1,672, with up-volume at
1,365,714,000; declining issues
were
1,928 with down- volume at
668,657,000. The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>VIX
was up 0.62  to 30.47. The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>TRIN
was up 0.38 to 1.30.
Overall volume was above average today. The first
part of the trading day was dominated by up volume, and the second by down
volume. The Dow and the S&P 500 have cooled their engines after five days of
solid gains, cruising right through the 50-day moving averages, and the Nasdaq
has managed to earn another “up” day, though a weak close suggests it has given
in to the powers of overhead resistance.


size=2>Top sectors of the day were the size=2>Securities Broker Dealer Index style=”mso-bidi-font-size: 10.0pt”>
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up
2.86%style=”mso-bidi-font-size: 10.0pt”> to
480.6 style=”mso-bidi-font-size: 10.0pt”>and the
Morgan Stanley Internet Idx style=”mso-bidi-font-size: 10.0pt”>
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up
2.15%style=”mso-bidi-font-size: 10.0pt”> to
582.74style=”mso-bidi-font-size: 10.0pt”>.


size=2>Losing sectors of the day were the size=2>Japan Index face=Arial size=2>
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down
size=2>3.33%size=2> to 109.42, style=”mso-bidi-font-size: 10.0pt”>and the
North American Telecoms Index style=”mso-bidi-font-size: 10.0pt”>
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down
1.20% style=”mso-bidi-font-size: 10.0pt”>to
787.83style=”mso-bidi-font-size: 10.0pt”>.


Computer
hardware maker 
Hewlett-Packard
style=”mso-bidi-font-size: 10.0pt”>
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fell
3.18% to 19.18 is in the crossfire of
board members against the will of CEO
Carly Fiorina to merge with
competitor Compaq
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, down
3.53% to 8.20. The debate has picked
up steam with Hewlett-Packard founder’s grandson, David Hewlett, adamantly
opposing the merger. The Hewlett family owns 5% of all Hewlett-Packard
stock.


Wireless
communications

service company
size=2>style=”font-family: Arial”>Qualcommface=Arial size=2>
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rose
size=2>0.38%size=2> to 54.94, falling short of analyst expectations by reporting earnings of 23
cents a share compared to 25 cents a year ago, and lowered guidance for the
fourth
quarter.


size=2>Communications service company  NTT DoCoMo

style=”FONT-FAMILY: ‘Arial’; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: ‘Times New Roman’; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA”>size=2> style=”mso-bidi-font-size: 10.0pt”>
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, down
3.42% to
20.765, announced that it was on track
to meet its target of 150,000 new Japanese subscribers for its 3G mobile
phone.


style=”mso-bidi-font-size: 10.0pt”>The world’s largest insurance broker
style=”FONT-WEIGHT: 700; FONT-SIZE: 10pt; FONT-FAMILY: Arial”>Marsh &
McLennan
face=Arial size=2>
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dipping
0.90% to
102.65, announced its profits fell 40% after paying out benefits to employees for the
Sept. 11 attacks. Net income fell to 58 cents a share
from 97 cents a share a year ago. Excluding the Sept. 11 disaster, earnings
were 96 cents a share.
style=”mso-bidi-font-size: 10.0pt”> 


Health insurer style=”FONT-WEIGHT: 700; FONT-SIZE: 10pt; FONT-FAMILY: Arial”>Aetna

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fell
2.37% to 31.25
after reporting earnings of 44 cents a share compared to 30 cents a year ago.
Analysts were generally expecting earnings of 55 cents a share. This is the
company’s third straight quarter of posting an operating loss.


style=”FONT-FAMILY: Arial”>Energy trader
size=2 color=”#0000FF”>Enronstyle=”FONT-FAMILY: ‘Arial’; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: ‘Times New Roman’; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA”>size=2> style=”mso-bidi-font-size: 10.0pt”>
(
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down
6.41% to 9.05style=”mso-bidi-font-size: 10.0pt”> fell to a nine-year low after its credit was
downgraded by Standard and Poor’s to a rating of BBB+ from BBB. The new rating
suggests further downgrade action may be taken.