The Real Reason The Market Is Shugging Off Higher Jobless Claims…

May 22, 2003
Vincent Mao

Stocks
are modestly higher this midday. Despite what looked to be worse than
expected weekly jobs data, the major indices are putting on a broad-based rally.
Tech issues are leading the charge after software maker Synopsys
(
SNPS |
Quote |
Chart |
News |
PowerRating)
raised full-year guidance. Stocks are also higher after digesting Greenspan’s
cautiously optimistic views on the economy, which may be the reason the market
ignored a bad Jobless Claims Report. Bonds are once again higher while gold is
off after a six-session run. Retailer Gap
(
GPS |
Quote |
Chart |
News |
PowerRating) will report. Volume is
expected to decrease both today and tomorrow ahead of the Memorial Day weekend.Â

In economic news, Weekly
Jobless Claims rose by 7,000 to 428,000. Economists were looking for a drop
to 420,000. This was also the fourteenth week that claims have been aboveÂ the
key 400K level. However, most of the raise in jobless claims was due to the
tornadoes that affected the South and Midwest areas. On another bright note, the
more closely watched four-week moving average fell by 7,750 to a five-week low
of 433,000.Â

The 10-year U.S. Note
is +90 at 118 230.

The dollar is flat at
93.68.

Gold is -3.90 at 368.30.

Crude OilÂ -0.68 at
28.60.

Volume is at 708,000,000
on the NYSE, and at 915,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 2.01, and up
volume over down volume by a 3.32 ratio. Nasdaq advancing issues over declining
issues at 1.41, and down volume over up volume is at a 3.67 ratio.

Top Dow stocks are:

Stocks in the news:

Specialty retailer Claire
Stores
(
CLE |
Quote |
Chart |
News |
PowerRating) is higher by 7.4% on heavy volume. The shares jumped after
the company reported first quarter results that topped expectations by 6 cents.
Claire reported earnings of 32 cents a share compared to 17 cents a share from
year ago levels. The company also upped its full-year outlook to $1.95 a share
from $1.74. In addition, the company raised its quarterly dividend from 4 cents
to 6 cents.Â Â

Athletic shoe and apparel
retailer Foot Locker
(
FL |
Quote |
Chart |
News |
PowerRating) is higher by 8.25% on double its average
volume. The company reported first quarter results in line with estimates. Foot
Locker is also optimistic about meeting or beating next quarter’s estimate of 24
cents a share.Â Â

Imclone
(
IMCL |
Quote |
Chart |
News |
PowerRating) is
trading higher by 2% after the company avoided delisting pending the filing of
its 10k and 10Q. Nasdaq has given Imclone until June 23 to file its 10Q and July
7 to file its 10K in order toÂ avoid delisting.Â

New Century Financial
(
NCEN |
Quote |
Chart |
News |
PowerRating) is higher by 14% on triple its average volume. The company upped its
full-year outlook to between $8.75 to $9.25 from $7.40 to $7.50. New Century
also declared a 3-for-2 stock split.

Synopsys
(
SNPS |
Quote |
Chart |
News |
PowerRating)
reported second quarter results excluding acquisition costs that more than
double from the same period a year ago. The company also topped estimates by 10
cents. In addition, the company also raised third quarter estimates to 82 cents
from 75 cents and full-year estimates to between $2.95 to $3.10 from $3.03.Â

vincentm@tradingmarkets.com

The Real Reason The Market Is Shugging Off Higher Jobless Claims…

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