That Bullish Feeling
The markets rang up large gains
in early trading, then consolidated for most of the day before staging another
rally in the last half-hour of trading. Semiconductor and software issues led
the action, with biotechnology the only sector down at the close.
The
Dow Jones Industrial Average
(
$INDU |
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PowerRating) closed up
2.60%Â to
10,368.86.
The S&P 500
(
$SPX |
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Chart |
News |
PowerRating) closed up 2.09%
to 1,129.84.
The Nasdaq [$COMPQ |$COMPQ] closed up 4.12%
to 1,802.76.
Good feelings over the economy
circulated through the markets today as better-than-expected data gave further
indication of a rebound in progress. The Institute of Supply Management Index
rose to 54.7% for February, beating the expected 50.9%. This bettered January’s
number of 49.9 and represents expansion in the manufacturing sector. Elsewhere,
the Commerce Department reported that personal spending climbed 0.4% for
February, slightly off the 0.3% analysts were looking for.
Overall
NYSE volume was 1,430,775,000.
NYSE advancing issues were 2,221,
with up-volume at 1,079,543,000;
declining issues were 932,
with down-volume at 335,965,000.
Overall Nasdaq volume was 1,869,673,000.
Nasdaq advancing issues were 2,302,
with up-volume at 1,463,783,000;
declining issues were 1,235
with
down-volume at 387,051,000.
The VIX
was down 1.00 to 22.13. The TRIN
was down 0.60 to 0.74.
Above-average volume on the
session saw the Dow breaking out to levels not seen since August, the S&P
500 hitting its 50-day MA, and the Nasdaq hitting its 20-day MA. The Broker/Dealer
Index
(
$XBD.X |
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News |
PowerRating), up 1.91%, hit its 20-day MA.
Top
sectors of the day were the Semiconductor
Index
(
$SOX.X |
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Chart |
News |
PowerRating), up 11.04% at 567.26,
and the GSTI Internet Index
(
$GSM.X |
Quote |
Chart |
News |
PowerRating), up 9.84% at 272.09.
The
only losing sector of the day was the Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), down 0.43% at 477.09.
Chip company Novellus Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating), up 15% to 48.98, said that
it expected to exceed its first quarter earnings as it believes the sector is
beginning to recover. Elsewhere in the sector, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) was up
8.55% to 30.99, and Micron Technologies
(
MU |
Quote |
Chart |
News |
PowerRating) was up 12.88% to 36.29.
Metal mining company Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating), up 0.64% to 37.81, fell after
Prudential Securities downgraded the stock to Hold from Buy. The entire sector
was given a downgrade by the brokerage firm.
Automakers Ford
(
F |
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News |
PowerRating), up 5.11% to 15.64, and General Motors
(
GM |
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News |
PowerRating), up 3.96% to 55.08, both announced that they would extend their 0%
financing deals in an effort to boost sales.
Biotechnology company Andrx Group (ADRX),
up 25.23% to 41.89, announced it has been granted a motion for summary judgment
of non-infringement in its case against Wellbutrin SR over its antidepressant
drug. Though more litigation is expected, Andrx Group should be able to launch a
version of the generic drug by summer.
Communications chip maker Marvell Technology
(
MRVL |
Quote |
Chart |
News |
PowerRating), up 14.89% to
35.26, rose after posting better-than-expected earnings for the first quarter as
well being upgraded from CIBC World Markets, Merrill Lynch and JP Morgan.
Communications equipment maker Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating), up 5.12% to
15.00, was the focus of negative comments from JP Morgan, claiming 2002 earnings
and revenue would come in less than expected. The investment bank was also less
optimistic about 2003 earnings.
Biotechnology company Invitrogen Corporation
(IVGN),
down 24.63% to 34.40, fell after several firms downgraded the company when it
was released that first quarter earnings would come in less than expected due to
currency exchange rates and weakness in its core molecular biology business. JP
Morgan has downgraded the stock to Long
Term Buy from
Buy.