Signs Of Follow Through?
Positive
earnings from Dow stocks helped drive the index to just shy of its
50-day moving average, while the S&P 500 and Nasdaq managed to close above
their 50-day averages. The bulls took charge for the fourth session in a row, as
the major indexes posted another round of impressive gains. Price action was
choppy, though trended higher throughout the day. Volume was well above average,
giving indication of the follow-through Tim
Truebenbach has been looking for from last Thursday’s potential bottom.
The
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed +4.80%
at 8255.68. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed +4.73%
at 881.21. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed +5.07%
at 1,282.44.
The biggest advances were made
in airlines
(
$XAL |
Quote |
Chart |
News |
PowerRating), +12.16%, semiconductors
(
$SOX |
Quote |
Chart |
News |
PowerRating),
+9.44%, networking
(
$GIP |
Quote |
Chart |
News |
PowerRating), +8.34%, insurance
(
$IUX |
Quote |
Chart |
News |
PowerRating),
+7.88%, and banks
(
$BKX |
Quote |
Chart |
News |
PowerRating), +7.54%.
The only losing sectors were gold
and silver
(
$XAU |
Quote |
Chart |
News |
PowerRating), -2.73%, and utilities
(
$UTIL |
Quote |
Chart |
News |
PowerRating), -0.74%.Â
In economic news, business
inventories fell 0.1% vs. expectations of an increase of 0.2%.
The 10-year U.S. Note
was -1 165 at 113 095.
The dollar was +0.62 at
108.12.
Volume was above average, at
1,821,716,000 on
the NYSE, and 1,946,856,000
on the Nasdaq.
Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 2.90, and up
volume over down volume by a 7.01 ratio. Nasdaq advancing issues over declining
issues came in at 3.01, and up volume beat down volume by a 9.72 ratio.
The
VIX
was -2.87 at 39.74. The TRIN
was -0.38 at 0.41.
The Dow was helped higher by the following earnings
releases:
Financial giant Citigroup
(
C |
Quote |
Chart |
News |
PowerRating), +12.63% at 34.14, was the biggest Dow gainer as it beat its third quarter
earnings estimates by $0.01 with profits of $0.74 per share.
Auto maker General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), +10.34% at 36.70, beat its third-quarter earnings estimates with
profits of $2.20 per share vs. the Multex consensus of $0.99.
Pharmaceutical company
Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), +2.99% at 59.56, beat its third-quarter
earnings estimates by $0.01 with profits of $0.60 per share.
Stocks in the news:
Airline Delta Airlines
(
DAL |
Quote |
Chart |
News |
PowerRating),
+21.20% at 9.09, announced a much lower-than-expected loss for the
third-quarter, which was much smaller than a year ago. Also from the sector, Continental
(
CAL |
Quote |
Chart |
News |
PowerRating), +6.07% at 5.24, and AMR Corp.
(
AMR |
Quote |
Chart |
News |
PowerRating), +19.78% at 4.48.
In the pharmaceutical business,
Forest Labs
(
FRX |
Quote |
Chart |
News |
PowerRating), +3.80% at 97.06, beat its quarter
estimates by $0.03, and feels comfortable earrings will be 50% for the year.
Money center bank Bank of
America
(
BAC |
Quote |
Chart |
News |
PowerRating), +7.02% at 39.74, beat its third-quarter earnings by $0.04
with profits of $1.45 per share. Also, Bank One
(
ONE |
Quote |
Chart |
News |
PowerRating), +7.02% at
39.74, posted third-quarter profits inline with estimates, and Wells Fargo
(
WFC |
Quote |
Chart |
News |
PowerRating), +5.39% at 49.78, reported third-quarter earnings in line with
estimates.
Tobacco company Philip
Morris
(
MO |
Quote |
Chart |
News |
PowerRating), +4.51% at 40.02, been upgraded by Goldman Sachs to
“recommended list” from “market outperform.”
Home mortgage company Fannie
Mae
(
FNM |
Quote |
Chart |
News |
PowerRating), +6.76% at 70.98, beat Wall Street third-quarter estimates,
and said 2002 growth will be above long term trends.
Broker Charles Schwab
(
SCH |
Quote |
Chart |
News |
PowerRating),
+10.37% at 9.79, reported profits inline with estimates as it increased the
number of new accounts by 3 percent.
Computer hardware maker International
Business Machines
(
IBM |
Quote |
Chart |
News |
PowerRating), +7.97% at 68.48, received positive comments
form SoundView Technology, who thinks the company will beat expectations as its
business sees stabilization in the Asia/Pacific region.
Software giant Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), +6.08% at 52.29, was by Goldman Sachs “to meet or slightly
exceed” earnings and revenue estimates due to strong fiscal first-quarter
results.
From TM’s Momentum List, audio
and video equipment maker Imation
(
IMN |
Quote |
Chart |
News |
PowerRating) was +6.22% at 36.67 .