Still On Track

November 12, 2001
Daniel Beighley

The
markets responded to tragedy off the opening
bell as the major indexes fell on news of a plane crash in New York.
By 12:30 p.m. ET, traders had shaken the event and a light-volume rally sent the
averages higher into the close where the Nasdaq made a slight gain, and the Dow
and the S&P 500 declined slightly. Airline and travel-related stocks felt
the brunt of today’s disaster, while technology-related sectors made gains.

The
crash of American Airlines flight 587 sent shares of travel-related stocks down
for the day. At this time, the cause of the crash
is unknown though the prospects of another terrorist attack are of great concern
and New York airports, bridges, and tunnels were closed as a precaution. However, the markets appeared to have shaken the event, rallying off the day’s
lows. This week is an options expiration week, be on the lookout for unusual
volatility.

Overall
NYSE volume was 977,047,000.
NYSE advancing issues were 1,495,
with up volume at 437,344,000;
declining issues were 1,564,
with down volume at 529,204,000.
Overall Nasdaq volume was 1,585,873,000.
Nasdaq advancing issues were 1,777,
with up volume at 1,073,643,000;
declining issues were 1,778 with
down volume at 484,952,000. The VIX
was up 2.50 to 31.26. The TRIN
was up 0.19 to 1.15. The day’s light volume can be attributed to the Veterans
Day Holiday, and the rebound from the event-driven lows exemplifies traders’
desire to buy perceived bargains. Technically the indexes still appear to be at
the whim of a pullback, though today’s disaster reminds us how quickly the
market climate can change.

Food processor
Tyson Foods
(
TSN |
Quote |
Chart |
News |
PowerRating),
up
0.58%
to 10.45, said it had more than doubled its earnings thanks to
its acquisition of beef and pork processor IBP, and a rise in chicken prices.
The company reported earnings of 22 cents a share compared to 8 cents a year
ago.

Another
food-processing company Chiquita Brands International CQB|CQB]

dropped
13.04% to 0.60, announcing
it was filing for bankruptcy after losing over $1.5 billion in legal fees for
its eight-year battle with the European Union.

Retailer May Department
Stores

(
MAY |
Quote |
Chart |
News |
PowerRating)
up 0.03% to 34.71,
reported a 39% decline in third-quarter earnings due to the U.S. economic
slowdown. Earnings came in at 16 cents a share, compared to 27 cents a share a
year ago.

Communications
equipment company Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating)

rose 9.66%
to 18.84, saying it would meet third-quarter sales forecasts and reduce 10% of
its workforce.

Still On Track

BUY THE FEAR, SELL THE GREED

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