Positive News Keys Market Bounce

August 27, 2002
Paul Letourneau

The
markets are in negative territory at the mid-day point, after a
positive open and a bounce off intraday lows. The biggest gainers are gold and
silver, chemicals, oil, and banks, with semiconductors, healthcare providers,
and biotechnology deepest in the red.

Key economic releases this
morning gave the markets mixed signals as durable goods orders came in
better than expected at 8.7%Â vs. the 1.4% expected by economists. The
Commerce Department said a 7.3% rise in orders excluding defense was the largest
ever recorded. Also, the Conference Board reported that consumer confidence
came in at 93.5, well below July’s 97.4 reading, and the 97.0 expected by
analysts.

U.S. Treasury Bonds were
are up ’06 at 110 ’04.

Volume is on the light side
at 613,657,000
on the NYSE, and 815,229,000
on the Nasdaq.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 0.93, and down
volume over up volume by a 1.24 ratio. Nasdaq declining issues over advancing
issues came in at 1.76, and down volume beat up volume by a 2.36 ratio.

Chip giant
Intel (INTC),
down 4.68 at 17.28,Â has announced that it only sees moderate growth in its
third-quarter with an absence of pick up in technology spending by corporations.

Merrill Lynch hit the retail
industry with several downgrades before the bell this morning. Downgrades to
“sell” are: Dollar Tree (DLTR),
down 8.18% at 25.80, Nordstrom (JWN),
down 4.96% at 19.13, and Shopko Stores (SKO),
down 9.72% at 14.95. Also downgraded are: Barnes and Noble (BKS),
down 2.17% at 22.50, Borders Group (BGP),
down 2.42% at 18.09, BJ’s Wholesale Club (BJ),
down 3.93% at 25.17, Costco (COST),
down 4.25% at 33.32, Target (TGT),
down 4.35% at 34.23, Talbots (TLB),
down 5.27% at 31.97, Coach (COH),
down 1.52% at 26.50, Ann Taylor (ANN),
down 5.15% at 27.21, The Limited (LTD),
down 4.91% at 16.04, Oakley Inc. (OO),
down 3.34% at 13.57, Sports Authority (TSA),
down 8.85% at 6.38, Too Inc. (TOO),
down 7.78% at 24.05, and Williams Sonoma (WSM),
down 8.45% at 22.85.

Hospital chain Health South
(
HRC |
Quote |
Chart |
News |
PowerRating), down 44.94%
at 6.59, gapped down and hit a 52-week low this morning this morning after the
company announced it will spin off its surgery center in a tax-free deal.Â

Construction services company
Toll Brothers (TOL),
down 1.68% at 26.30, has beat its third-quarter earnings expectations by 4 cents
with profits of 70 cents a share.

Personal services retailer
Regis Corp. (RGIS),
down 0.63% at 25.10, has beat its fourth-quarter earnings by 2 cents, with
profits of 45 cents per share.

Pharmaceutical company and Dow component Johnson &
Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), down 0.07% at 55.65, announced after the close Monday
that the federal government will not intervene in a lawsuit filed against it by
a former employer who has alleged inappropriate manufacturing practices.

Investment services company
Alliance Capital (AC),
down 0.53% at 33.52, has been list as a top pick among a group of asset managers
it raised earnings and price targets for.

Insurance company Lowes
Corp. (LTR),
down 2.57% at 51.51, has been downgraded by Salomon Smith Barney to “outperform”
from “buy.”

After the bell today Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating), down
3.97% at 14.26, will announce its fiscal third-quarter results.

Positive News Keys Market Bounce

BUY THE FEAR, SELL THE GREED

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