The Dow May Be Up, But Take A Look At This Index

August 8, 2003
Vincent Mao

Stocks are
mixed this midday.Â Blue chip issues are
higher today but the Nasdaq is looking for its sixth straight day of losses.
McDonalds is cooking after the company reported its third straight month of
increasing sales. Sales in the U.S. jumped by a much better-than-expected 10%.
Both the Dow and S&P have fared better than the tech-heavy Nasdaq. Although
still stuck in a near two-month low trading range, the Dow is closing in on its
next area of resistance at 9200. The Nasdaq has been weak lately due to the
breakdown in the semiconductors. The index sliced through its 50-day moving
average today. Novellus Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating) and Teradyne
(
TER |
Quote |
Chart |
News |
PowerRating) hit two-month
lows today. Also helping stocks today are higher bond prices. Yields are off the
one year high of 4.5292% reached a week ago.Â

No economic news to report
today.Â

The 10-year U.S. Note
is +305 at 113 135.

The dollar is +0.38 at
96.34.

Gold is +3.30 at 357.40.

Crude Oil -0.35 at
32.05.

Volume is 714,000,000 on
the NYSE, and 935,000,000 on the Nasdaq.

Market breadth is mixed,
with NYSE advancing issues over declining issues by 1.61, and up volume over
down volume by 1.64. Nasdaq declining issues over advancing issues at 1.15, and
down volume over up volume at 1.28.

Top Dow stocks are:

Stocks in the news:

Broadband and networking
equipment maker Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) is fractionally lower today after
the company agreed to settle all outstanding litigation with Intel
(
INTC |
Quote |
Chart |
News |
PowerRating).
In the agreement, Broadcom will pay Intel $60 million to settle all outstanding
claims. The companies also agreed to cross-license each other’s patents.Â

Data storage company Emulex

(
ELX |
Quote |
Chart |
News |
PowerRating) is higher by 4.8% after the company reported better-than-expected
fourth-quarter results. In its latest quarter, the firm earned 22 cents a share
compared to a loss of 14 cents a share in the year-ago quarter. Excluding items,
the company earned 23 cents a share or a penny better than analysts’ estimates.
Looking ahead, the company sees first-quarter revenues between $82 to $85
million and earnings of 21 cents a share. Analysts forecast revenues of $83.9
million and earnings of 22 cents a share.Â

The world’s largest fast food
chain, McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating), is higher by 7% after the company reported
its third consecutive month of rising sales. Sales in July rose by 4.2% and
sales in the U.S. jumped by 10%. McDonald attributed the jump in business to
strong sales of its McGriddles breakfast sandwiches and its premium salads.Â

Graphics chips maker NVIDIA

(
NVDA |
Quote |
Chart |
News |
PowerRating) is lower by 19% despite reporting better-than-expected second
results.Â For its second quarter, the company earned 14 cents a share compared to
3 cents a share in the year-ago quarter. Revenues rose 7.6% to $459.8 million.
Earnings for the quarter were positively affected by a lowered tax rate of 9.4%
compared to 30%. There is also concern over the company’s gross profit which
declined slightly more than expected. Looking ahead, NVIDIA is expected revenues
between $482.8 to $487.4 million which is below analysts’ estimates of $496
million.Â

Restaurant operator
O’Charley’s
(
CHUX |
Quote |
Chart |
News |
PowerRating) is lower by 19% after reporting its latest quarterly
results. For the second quarter the company earned 27 cents a share compared to
30 centsÂ a share in the year-ago quarter. Revenues jumped 55.6% to $179.2
million. However the results were in line with estimates. Looking ahead, the
company sees third-quarter results between 21 to 24 cents a share compared to
consensus estimates of 31 cents a share.Â

Supermarket chain Winn Dixie

(
WIN |
Quote |
Chart |
News |
PowerRating) is lower by 12% after the company warned that first-quarter and
full-year results would come in below expectations. Due to increased promotional
activities, the company now expects breakeven results in the first quarter
compared to consensus estimates of 24 cents a share. Full year results are
expected at $1.10 a share compared to estimates of $1.35.Â

If you have any comments or
questions, please feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

The Dow May Be Up, But Take A Look At This Index

BUY THE FEAR, SELL THE GREED

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