The Gains We Locked In

February 8, 2002
Daniel Beighley

The
markets were off to a strong start this morning, then went negative
to hit the day’s lows around 1:30 pm ET, before turning around and powering to
the day’s highs, locking in decent gains for the close. Biotechnology, Internet,
and broker/dealers were the biggest gainers of the day, with only utilities and
healthcare sectors left in the red.

Trading today was thin, as
upgrades in the technology and brokerage sectors seemed to put a positive spin
on the session. The economic front was quiet as well, with wholesale
inventories down 0.6%, just under analysts’ expectations of a 0.7% decline.

Overall
NYSE volume was 1,356,206,000.
NYSE advancing issues were 2,074,
with up volume at 1,021,482,000;
declining issues were 1,042,
with down volume at 318,338,000.
Overall Nasdaq volume was 1,786,442,000.
Nasdaq advancing issues were
2,328,
with up volume at 1,344,289,000;
declining issues were 1,194 with
down volume at 417,870,000.
The VIX
was down 2.18% to 25.50. The TRIN
was down 0.06 to 0.62.

Below-average volume on the day
capped off the worst week for the Nasdaq since the Sept. 11 attacks, though all
three major indexes bucked the down trend of the past five days. The
Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) traded for its fifth day below its
50-day moving average, and the Broker/Dealer Index
(
XBD.X |
Quote |
Chart |
News |
PowerRating) was able
to rally north through its 200-day moving average, for its first close above
this mark in six sessions.Â

Computer hardware maker Sun
Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating), up 5.42% to 9.72, was one of the biggest gainers
of the day after Merrill Lynch upgraded the shares to Buy from Neutral. Merrill
Lynch also added that Sun faced business model and selling transitions.

Tire maker giant Goodyear
Tire
(
GT |
Quote |
Chart |
News |
PowerRating), up 10.33% to 23.61, reported a wider-than-expected fourth
quarter loss attributed to weak demand and a restructuring cost. The company
also said that it will cut more than 3.500 jobs by the end of the year.

Conglomerate Tyco
International
(
TYC |
Quote |
Chart |
News |
PowerRating),Â up 6.42% to 29.85, said it expects to have at
least $1 billion in cash for its upcoming second, third, and fourth quarters.
The announcement came against worries that the company’s complex accounting
issues may lead to a cash shortage.

Insurance company American
International Group
(
AIG |
Quote |
Chart |
News |
PowerRating), up 4.06% to 74.00, benefited from an upgrade
by Merrill Lynch to Strong Buy from Buy. The company was also added to Merrill’s
“Focus One” list.

Brokerage Merrill Lynch
(
MER |
Quote |
Chart |
News |
PowerRating), up 5.91% to 48.19, received an upgrade itself, as Credit Suisse First
Boston upgraded the company to Strong Buy from Buy. Analyst Joan Solotar claimed
the company has an “extremely attractive entry point.”

Communications equipment maker
and long distance carrier WorldCom
(
WCOM |
Quote |
Chart |
News |
PowerRating), up 8.51% to 8.16, eased
some fears over its losses endured this year when it said it’s exposure to Global
Crossing’s bankruptcy would not have any material impact. The company also
announced that it had no off balance sheet financings.

Computer services company Electronic
Data Systems
(
EDS |
Quote |
Chart |
News |
PowerRating), dropped 2.68% to 57.42 after beating analysts’
fourth quarter earnings expectations, but falling short of its revenue target.
Credit Suisse First Boston downgraded the stock to Buy from Strong Buy.

The Gains We Locked In

BUY THE FEAR, SELL THE GREED

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