These Factors Are Pointing To Further Momentum

July 29, 2002
Daniel Beighley

The
markets carried over last Friday’s enthusiasm as price action gapped
up off the open, and held a steady uptrend into the close. The biggest gainers
were networking, oil service, telecoms, airlines, andÂ insurance, with no
sectors closing in negative territory.Â

Today was the first time since
May that the markets were able to rally for more than one day in a row.Â Breadth
and volume on the session give the bulls reason to cheer, though the 20-day MAs
for the major indexes represent the next upside obstacles, with only the Dow
able to cross above that mark today.

U.S. Treasury Bonds were
down ‘9 at 105 ’29.

There will be no economic reports released this week until
Thursday, when auto sales, initial claims, and the ISM Index
will come out.Â

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 4.42, and up
volume over down volume by a 11.29 ratio. Nasdaq advancing issues over declining
issues came in at 2.90, and up volume beat down volume by a 11.46 ratio.
The

VIX was downÂ 6.71 at 33.73. The

TRIN was up 2.69 at 1.68.

Losing
sectors: There were no sectors closing in negative territory.

Communications services company Qwest Communications
(
Q |
Quote |
Chart |
News |
PowerRating), down 0.66% at 1.49, announced that it expects to restate its financial
results for 2000 and 2001 due to accounting errors.

EntertainmentÂ giant America Online
(
AOL |
Quote |
Chart |
News |
PowerRating), up
6.23% at 11.58, was downgraded by Standard and Poor’s to “negative” from
“stable” due to among other things, deteriorating ad sales.

Drug maker King
Pharmaceuticals (KG),
up 2.88% at 18.52, beat its second-quarter earnings expectations by 3 cents with
profits of 34 cents per share. The stock also benefited from a positive Wall
Street Journal article on the generic drug industry.

Retailer Williams-Sonoma
(WSM),
up 11.20% at 26.20, was upgraded by Lehman Brothers to “buy” from “market
perform” based on valuation and anticipated growth.

Regional bank Capital One
Finance (COF),
down 3.77% at 29.35, was downgraded by Legg Mason to “hold” from “buy” over
earnings concerns for the next six months.

Insurance company Chubb
(CB),
up 6.21% at 64.90, has missed its second-quarter earnings consensus by 8 cents
with profits of $1.05 a share. The company has also lowered its earnings
guidance for the full year to $4.60 from $4.66.

Also in the insurance sector, American International
Group
(
AIG |
Quote |
Chart |
News |
PowerRating), up 9.39% at 62.16, was upgraded to “strong buy” from “buy”
based the belief that its current valuation understates its earnings power.

Electric utilities company
Energy East
(
EAS |
Quote |
Chart |
News |
PowerRating), up 0.41% at 19.13, missed its second-quarter earnings
consensus by 3 cents with profits of 23 cents a share. Revenue came in at $849
million vs. $571.9 million a year ago.

Recreational products company
Action Performance
(
ATN |
Quote |
Chart |
News |
PowerRating), up 20.65% at 29.50, has beat its third-quarter
earnings expectations by 4 cents with profits of 72 cents a share. Revenue rose
20.6% form a year ago.

Until tomorrow,

Daniel

These Factors Are Pointing To Further Momentum

BUY THE FEAR, SELL THE GREED

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