Red Hot Sector Falls A Second Day — Pullback Or Trend Change?

June 18, 2003
Vincent Mao

Stocks
were mixed Wednesday. The Nasdaq took out the June 6 high, but closed
below it. A second-quarter revenue warning from Eastman Kodak weighed on the Dow. The New York Times
(
NYT |
Quote |
Chart |
News |
PowerRating), Clorox,
(
CLX |
Quote |
Chart |
News |
PowerRating), and Tupperware
(
TUP |
Quote |
Chart |
News |
PowerRating) also issued earnings warnings. The fact that
there was buying into this morning’s pullback is definitely a positive, but many
experts suggests that the “easy money” has been made. The Housing sector fell
for a second straight day, with negative momentum divergence. Bonds are pulling
back for a third straight session. The dollar showed some signs of life.

No economic news today.

The 10-year U.S. Note
is -185 at 119 000.

The dollar is +0.56 at
93.63.

Gold was down 5.20 at 358.60,

Crude Oil fell 0.15 at
28.11.

Volume is at
1,470,788,000
on the NYSE, and at 2,086,800,000 on the Nasdaq.

Market breadth is mixed,
with NYSE declining issues over advancing issues by a ratio of 1.57, and down
volume over up volume by a 1.23 ratio. Nasdaq advancing issues over advancing
issues at 1.01, and up volume over down volume is at a 2.19 ratio.

Top Dow stocks were:

Stocks in the news:

American Airlines
(
AMR |
Quote |
Chart |
News |
PowerRating)
was higher after Merrill Lynch upgraded the stock from “neutral”
to “buy”. Merrill based the upgrade on the company’s turnaround plan and also
has a 12-month price target of $13 for the stock.

Electronics For Imaging
(
EFII |
Quote |
Chart |
News |
PowerRating) gained after the company raised its
second-quarter forecast to 15 to 16 cents a share from a previous forecast of 14
cents a share. Electronics For Imaging raised its forecast on strong demand and
improving gross margins.

Find What.com
(
FWHT |
Quote |
Chart |
News |
PowerRating)
was higher after the company lifted
its second-quarter forecast. The company now sees earnings of at least 14 cents
a share on $17 million in revenues. Previously the company expected earnings of
10 cents a share on revenues of $16 million.

Bear Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating)
was lower by 1.50% on heavy volume after reporting its second-quarter results.
Bear Stearns reported $2.05 a share compared to $2.59 a share during the same
period a year ago. However results came in 33 cents higher than estimates.

Best Buy
(
BBY |
Quote |
Chart |
News |
PowerRating) fell after reporting first quarter results of 21 cents a share,
besting estimates by a penny. Looking ahead the company sees earnings of 27
cents a share for the next quarter which is inline with estimates.

Clorox
(
CLX |
Quote |
Chart |
News |
PowerRating) was
lower after the company said that they now see
fourth-quarter results of 67 to 68 cents a share compared to analysts estimates
of 69 cents a share.

Eastman Kodak
(
EK |
Quote |
Chart |
News |
PowerRating)
was lower after the company warned that
second-quarter results would be about half of previously expected.

New York Times
(
NYT |
Quote |
Chart |
News |
PowerRating)
fell after the company warned that second-quarter earnings will fall short of
previous estimates. The Times now expects results between 43 to 47 cents a
share. Analysts were expecting 54 cents. The company cited increased costs and
lower advertising growth.

Vincent Mao

Red Hot Sector Falls A Second Day — Pullback Or Trend Change?

BUY THE FEAR, SELL THE GREED

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