The Strength Of This Rally

March 13, 2003
Daniel Beighley

The
major indexes are up nicely midday in a follow through effort from
yesterday afternoon’s impressive rally. Despite a weaker-than-expected retail
sales report, price action gapped up off the open, pulled back in the early
morning, then resumed its climb to new highs on the session. The latest from the
UN is that a vote for a new resolution may not happen until next week. Market
breadth for the session is positive on strong volume, with the dollar gaining
ground and gold selling off.

The lone sector in the red is
natural gas
(
$XNG.X |
Quote |
Chart |
News |
PowerRating), -0.37%.

In economic news, initial claims came in
at 420K vs. expectations of 418K, and retail sales fell 1.6% vs.
estimates of a 0.5% decline.

The 10-year U.S. Note
is -280 at 116 190.

The dollar is +0.99 at
99.18.

Gold is -11.30 at
335.30.

Crude OilÂ -0.53 at
37.30.

Volume is at 787,137,000
on the NYSE, and at 821,415,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 2.22, and up
volume over down volume by a 3.55 ratio. Nasdaq advancing issues over declining
issues are at 1.92, and up volume over down volume is at a 9.87 ratio.

Biggest Dow gainers are:

Stocks In The News:

Consumer electronics giant
Koninklijke Philips Electronics
(
PHG |
Quote |
Chart |
News |
PowerRating), +9.05% at 15.55, announced that
it will eliminate 1,600 jobs as it closes several US plants.

Conglomerate Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating),
-11.40% at 12.43, reduced its earnings guidance and announced that it had fired
the head of its fire and security business services due to accounting problems.

Payroll processing company
Automatic Data Processors
(
ADP |
Quote |
Chart |
News |
PowerRating), -6.17% at 28.57, lowered its sales
forecast for the year and said it may eliminate jobs at some of its
under-performing businesses. The company bales a weak economy. The stock is
listed on TM’s Implosion List.

Medical equipment company
Baxter International
(
BAX |
Quote |
Chart |
News |
PowerRating), -19.66% at 21.91, lowered its earnings
guidance for the first-quarter and sees earnings at $0.36-0.38 vs. a consensus
of $0.44.

Communications services company
UTStarcom
(
UTSI |
Quote |
Chart |
News |
PowerRating), +0.63% at 17.55, has raised its earnings guidance
with new expected earnings of $0.27 per share vs. previous estimates of $0.23
per share.

In the retail sector,
Michaels Stores
(
MIK |
Quote |
Chart |
News |
PowerRating), +14.83% at 23.30, has beat its fourth-quarter
earnings by $0.06 with profits of $1.07 per share.

Paper product giant
International Paper
(
IP |
Quote |
Chart |
News |
PowerRating), +0.51% at 33.76, has lowered its first-quarter
earnings guidance to around $0.12 per share vs. a consensus of $0.20 per share.

From TM’s Momentum LIst,Â computer
peripheral company Avocent Corp.
(
AVCT |
Quote |
Chart |
News |
PowerRating), +7.67% at 29.49.

danielb@tradingmarkets.com

The Strength Of This Rally

BUY THE FEAR, SELL THE GREED

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