The Strength Of The Day

March 14, 2002
Daniel Beighley

The
ranges were narrow as the major averages turned in choppy sessions
with the Dow closing slightly positive, and the S&P 500 and Nasdaq slightly
negative. Forest and Paper, healthcare, and Japanese related stocks represented
the strength of the day, with Internet and computer hardware stocks representing
the weakest sectors.Â

More downgrades in the
technology sector hit the markets today as economic reports indicate a
strengthening economy. January business inventories rose 0.2% over an
expected 0.4% to put in its first gain in a year. Initial jobless claims
fell 3,000 to 377,000, with the market expecting 375,000. Also released today,
current account deficit came in for a total ofÂ $98.7 billion, barely
surpassing third quarter’s $98.5 billion.

Market breadth was mixed, with
NYSE advancing issues over declining issues by a ratio of 1.26, and down volume
over up volume by a 1.37 ratio. Nasdaq advancing issues over declining issues
came in at 1.26, and down volume beat up volume by a 3.94 ratio. The
VIX
was up 0.05 to 22.02. The TRIN
was downÂ 0.06 to 1.72.

Below average volume carried
the Dow and the S&P 500 to make inside days within their consolidation
zones, and the Nasdaq make another step down below its 50- and 200-day MA’s. The Semiconductor
Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), down 0.45%, made an inside day as it closed at the
bottom of its range. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), up 0.12%,
made another step down as it closed in a “doji” formation. .

Communications giant AT&T Corp (T),
down 1.02% to 15.55%, announced first quarter expenses will amount to $50
million to $100 million from cutting 500 management jobs.

Elsewhere in the communications industry, Sprint
(
FON |
Quote |
Chart |
News |
PowerRating), down 3.58%
to 15.35, was downgraded by Lehman Brothers to Market Perform from Buy, claiming
that the company’s “out-of-region” businesses have deteriorated.

Chip maker Atmel Corporation (ATML),
up 3.56% to 8.72, was upgraded by Banc of America Securities to Buy from Market
Perform. The company believes it has seen a bottom in its business and
anticipates sales accelerating for its June quarter.

Internet networking company Juniper Networks
Inc (JNPR),
down 11.11% to 11.52, fell afterÂ ABN AMRO downgraded the company to Hold
from Add, citing consensus estimates as too high and unlikely to achieve March
revenue guidance.

From TM’s Proprietary
Momentum List, Quest Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating), up 2.58% to 80.30, rose
as it continues its breakout from an ascending triangle.

From TM’s Proprietary
Implosion List, Emulex Corp
(
EMLX |
Quote |
Chart |
News |
PowerRating), fell 6.05% to 29.20, as the
stock closed below its 200-day MA.

The Strength Of The Day

BUY THE FEAR, SELL THE GREED

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