Sectors To Watch Tomorrow…

April 8, 2002
Daniel Beighley

After a sharply lower opening,
the major averages held an uptrend for the day, where the Dow closed negative,
and the S&P 500 and Nasdaq closed positive. Leading the pack were software,
Internet and energy stocks, with computer boxmakers, telecoms and airline
stocks deepest in the red.

The markets were given a 1-2
punch in the form of an earnings warning from International Business Machines
(
IBM |
Quote |
Chart |
News |
PowerRating),
and a threat from Iraq that it would withhold oil exports until Israel refrained
from violence in the Middle East. This week’s key economic releases will come
with initial claims on Thursday, and PPI, retail sales, and the University of
Michigan’s preliminary sentiment number on Friday.

Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.37, and up–volume over
down–volume by a 1.22 ratio. Nasdaq advancing issues over declining issues came
in at 1.16, and up–volume beat down–volume by a 1.34 ratio.
The
VIX was down 0.22 at 20.89. The TRIN
was

down 0.55 at 1.12.

Below-average volume saw the Dow
dip below, though close above its 50-day MA, the S&P 500 close in a "doji"
under its 50-day MA, and the Nasdaq close at the top of its daily range, though below its major
MAs. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
up 3.25%, dipped below its 50-day MA, though it closed at the top of its daily
range. The
Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), up 0.04%, also dipped below its 50-day
MA
and closed in a "doji" above the mark

Computer hardware maker

International Business Machines (IBM),
down 10.11% at 9.84, warned that first quarter earnings will come in between 66
cents and 70 cents compared to analysts’

consensus of 85 cents a share.

Online brokerage

Ameritrade Holding Corp (AMTD),
up 1.90% at 6.42, announced that it will acquire Datek Online Holdings in a $1.3
billion stock deal.

Communications services company AT&T Corp
(T),
down 0.06% at 15.03, has agreed to sell cable systems in Montana, Wyoming and
Colorado to Bresnan Communications for $735 million in cash.

Software and programming company
Computer Associates (CA),
up 4.17% at 20.73, said losses for its quarter ending March 31 were smaller
than previously estimated. The company has met revenue estimates of $770
million.

Bank and financial holding company Bank of
America (BAC),
up 0.81% at 69.48, has been upgraded by Bear Stearns to "attractive" from
"neutral," citing an improved earnings outlook due to improving commercial
credit. Bank One
(
ONE |
Quote |
Chart |
News |
PowerRating), up 1.75% at 41.77, also had its earnings
outlook improved by Stearns.

Optical networking company Sycamore Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating), up 17.44% at
4.04, benefited from an upgrade from Lehman Brothers to "strong buy" from
"market perform," citing an appealing risk/reward scenario.

Drug maker Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), up 0.52% at 63.38, was
downgraded by A.G. Edwards to "hold" from "buy" based on valuation.

From TM’s proprietary

Momentum List, restaurant company P.F. Chang’s Bistro
(
PFCB |
Quote |
Chart |
News |
PowerRating) was
up
3.11% at 71.40.

Sectors To Watch Tomorrow…

BUY THE FEAR, SELL THE GREED

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