Technology Is Weak Today… Here’s Why
The
major indexes are mixed midday after taking a roller coaster ride on
a report Saddam Hussein had been killed by coalition forces. The story cannot be
confirmed at this time, and prices have retreated from their intraday highs.
Technology issues are weak, with the market-leading semiconductors deep in the
red on the heels of an earnings warning from Microchip, and a downgrade on
Marvell. Airline stocks are also down with a downgrade from Smith Barney.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) is +0.05% at 8,304.39. The S&P 500
(
$SPX.X |
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PowerRating)
is -0.11% at 878.92. The Nasdaq
(
$COMPQ |
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PowerRating) is -0.29% at 1,385.44.
Biggest gainers are
biotechnology
(
$BTK.X |
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PowerRating), +0.83%, gold and silver
(
$XAU.X |
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PowerRating),
+0.72%, and banks
(
BKX.X |
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PowerRating), +0.65%.
Biggest losers are
semiconductors
(
$SOX.X |
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PowerRating), -3.21%, airlines
(
$XAL.X |
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PowerRating),
-2.71%, and transportation
(
$TRAN |
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PowerRating), -1.48%.
In economic news, wholesale inventories
rose 0.3%, slightly ahead of estimates of 0.2%.
The 10-year U.S. Note
is +130 at 114 030.
The dollar is -0.38 at
101.10.
Gold is +2.00 at 325.50.
Crude Oil +0.17 at
28.13.
Volume is at 591,459,000
on the NYSE, and at 680,851,000 on the Nasdaq.
Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 1.33, and down
volume over up volume by a 1.78 ratio. Nasdaq declining issues over advancing
issues are at 1.32, and down volume is over up volume by a 2.45 ratio.
Leading the Dow are:
Altria
(
MO |
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PowerRating),
+5.27% at 30.55, AT&T
(
T |
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PowerRating), +1.45% at 15.08, Microsoft
(
MSFT |
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PowerRating),
+1.51% at 25.55, Citgroup
(
C |
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PowerRating), +1.32% at 37.71, General Electric
(
GE |
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PowerRating), +0.94% at 28.02, Home Depot
(
HD |
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PowerRating), +0.76% at 26.53, and SBC
Communications
(
SBC |
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PowerRating), +0.20% at 21.77.
Stocks in the news:
Restaurant company and Dow stock
McDonalds
(
MCD |
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PowerRating), +0.26% at 15.84, has been upgraded by CSFB to
“outperform” from “neutral”.
Chip maker Microchip
(
MCHP |
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PowerRating),
-10.42% at 18.39, has lowered its fourth-quarter earnings estimates to $0.16 per
share vs. consensus estimates of $0.17.
Also in the chip sector, Marvell
Technology Group
(
MRVL |
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PowerRating), -4.76% at 20.60, has been downgraded by
UBS to “reduce” from “neutral”.
Software company Manhattan Associates
(
MANH |
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PowerRating),
+3.85% at 20.78, has issued profits guidance for the first-quarter below the
Multex consensus estimate. The company expects to earn between $0.16-0.18 vs.
the consensus of $0.22.
Discount retailer 99 Cents Only
(
NDN |
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PowerRating),
+5.56% at 28.27, has raised its estimates for the first quarter with revenue
expected to be $196.4 million vs. previous estimates of $187 million.
Airline stocks are under pressure as
Citigroup Smith Barney downgrades the sector to “marketweight” from
“overweight”. AMR Corp.
(
AMR |
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PowerRating), -13.55% at 3.70, Delta Air
(
DAL |
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PowerRating),
-4.91% at 10.08, and Continental Air
(
CAL |
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PowerRating), -2.15% at 6.38.
Exercise equipment maker Nautilus Group
(
NLS |
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PowerRating), -25.44% at 11.11, has lowered its first-quarter earnings expectations
to $0.39-0.42 per share vs. a consensus of $0.65 per share.
Waste management services
company Stericycle
(
SRCL |
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PowerRating), -6.43% at 36.65, has been downgraded by
Merrill Lynch to “neutral” from “buy”.
Broadcasting and cable TV company
Cablevision
(
CVC |
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PowerRating), -3.95% at 19.69, has been downgraded by JP Morgan to
“neutral” from “overweight”.
Healthcare facilities company Accredo
Health
(
ACDO |
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PowerRating), -44.92% at 13.99, has lowered its 2003 earnings
estimates to between $1.20-1.25 per share vs. a consensus of $1.37per share.
Medical equipment and supplies company
Varian Medical
(
VAR |
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PowerRating), +9.94% at 52.22, has raised its second-quarter
earnings guidance to $0.46-0.48 per share vs. previous estimates of $0.42.