The Big Question Now

February 11, 2002
Daniel Beighley

The
markets started the week off with the Dow and the S&P 500
trending higher from the openingÂ to the close, and the Nasdaq stumbling in
the first two hours before heading higher for a gain on the day. The
Internet and semiconductors helped lead technology issues higher, with gold and
silver, the Mexico Index, and healthcare stocks in the red.

With little in the
way of market altering news today, traders are speculating on the numbers to be
released for retail sales Wednesday, and producer prices, industrial production,
and consumer sentiment on Friday. This Friday is also triple witching.

Overall
NYSE volume was 1,139,731,000.
NYSE advancing issues were 2,105,
with up volume at 912,105,000;
declining issues were 1,005,
with down volume at 1,163,727,000.
Overall Nasdaq volume was 1,544,270,000.
Nasdaq advancing issues were 2,008,
with up volume at 1,061,221,000;
declining issues were 1,552 with
down volume at 473,575,000. The VIX
was down 2.20 to 23.27. The TRIN
was down 0.11 at 0.50.

The day’s light
volume saw the Dow come within a shot away of its 50-day moving average, and the
S&P 500 and the Nasdaq attempt to recover last week’s losses. The big
question now is whether we are beginning a new trend up, or going to resume the
downtrend. Today’s move lacked the volume to show conviction for the upside. The
Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) blew past its 50-day MA and touch its
200 MA. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) rose above its 200-day MA
for the second day in a row, and is still under its 50-day MA.

Communications
services company Qwest Communications
(
Q |
Quote |
Chart |
News |
PowerRating), down 0.24 at 9.36, fell
after it was announced that it received a subpoena for its documents pertaining
to Global Crossing, as a part of the SEC’s Chapter 11 bankruptcy investigation.

Chemical company and
Dow component E.I. Dupont De Nemours
(
DD |
Quote |
Chart |
News |
PowerRating), up 1.83 at 44.55, rose
after it was announced that it would spin off its textiles division into a
subsidiary. The struggling division is expected to have its IPO by the end of
2003.

Air courier FedEx
Corporation
(
FDX |
Quote |
Chart |
News |
PowerRating), up 1.769 at 55.169, said that it expects earnings to
come in “at the top of or slightly in excess of” guidance of 25 to 35
cents a share. Cost-cutting efforts along with improved revenue and earnings
growth were cited as factors of strength for the company.Â

Conglomerate Honeywell
International Inc.
(
HON |
Quote |
Chart |
News |
PowerRating), up 0.01 at 32.72, fought with its 50-day
moving average today after it was reported Friday that the company had lost its
asbestos lawsuit.

Software giant Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), up 0.45 at 61.10, was the subject of negative comments by Merrill
Lynch who believes the company will have a difficult time in 2002 from a weak
personal-computer market, and increased contribution from lower-margin business.
Merrill Lynch resumed coverage of the stock with a Neutral rating.

Communications
equipment maker Corning
(
GLW |
Quote |
Chart |
News |
PowerRating), rose 0.78 to 8.30, after it said
business would bottom out in the first quarter of this year.

The Big Question Now

BUY THE FEAR, SELL THE GREED

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