These Two Announcements Could Stir Things Up Monday Morning

April 25, 2003
Daniel Beighley

The
major averages ended the day in negative territory, as price action
trended down in the first half of the session, then consolidated for the
afternoon. The Dow was hardest hit with Altria leading the index down in
sympathy with RJ Reynolds’ profit warning. Semiconductors were the
worst-performing group of the day after Salomon Smith Barney hit it with a
downgrade. The Semiconductor Index closed at the bottom of its daily range on
its 20-day EMA. Monday morning’s pre-market could get stirred up, with Dow
components McDonald’s and Procter & Gamble scheduled to announce earnings.

There were no sectors closing
positive.

In economic news, GDP-adv.
came in at 1.6% vs. expectations of 2.3%, chain deflator-adv. was at 2.5%
vs. expectations of 2.0%, Michigan sentiment rose to 86.0 vs.
expectations of a reading of 85.0, existing home sales came in at 5.53M
vs. expectations of 5.72M, and new home sales were at 1012K vs.
expectations of 905K.

The Ten Year NoteÂ was
0.75 at 114 270.

The US dollar was +0.06
at 98.62.

Volume was below
average, with the NYSE coming in at 1,312,096,000 and the Nasdaq at
1,506,103,000.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.62, and down
volume over up volume by a 3.29 ratio. Nasdaq declining issues over advancing
issues came in at 1.42, and down volume beat up volume by a 3.35 ratio.

The

VIX was +0.61 at 23.90. The

TRIN was +0.50 at 2.02.

Biggest Dow losers were:

Stocks in the news:

Food processor Sara Lee
(
SLE |
Quote |
Chart |
News |
PowerRating), -4.71% at 16.96, missed its third-quarter earnings expectations by
$0.01 with profits of 19.74 per share. The company was also downgraded by
Goldman Sachs to “in line” from “outperform”.

Insurance company Unum
Provident
(
UNM |
Quote |
Chart |
News |
PowerRating), -26.74% at 9.12, announced first-quarter profits below
expectations as it lowered its dividend payments and said it will incorporate a
restructuring program that includes the sale of $400 million in stock.

Tobacco company RJ Reynolds
(
RJR |
Quote |
Chart |
News |
PowerRating),
-17.60% at 28.18, lowered its 2003 earnings guidance after posting lower sales
in the first-quarter.

Oil company Anadarko Petroleum
(
APC |
Quote |
Chart |
News |
PowerRating),
-0.86% at 46.00, beat its first-quarter earnings by $0.01 with profits of 46.40
per share.

Personal product maker Avon Products
(
AVP |
Quote |
Chart |
News |
PowerRating), -0.64% at 57.17, beat its first-quarter earnings by $0.01 with
profits of $0.42 per share. The company also said it expects to meet its targets
for the full year.

Online bookseller Amazon.com
(
AMZN |
Quote |
Chart |
News |
PowerRating),
+15.32% at 28.97, beat its first-quarter earnings expectations by $0.06 with
profits of $0.10 per share. The company has also raised its full year revenue
guidance to $4.7 billion vs. previous estimates of $4.6 billion.Â

Coffee retailer Starbucks
(
SBUX |
Quote |
Chart |
News |
PowerRating),
-6.97% at 23.47, reported second-quarter earnings in-line with with expectations
at $0.13 per share.

Conglomerate
3M Company
(
MMM |
Quote |
Chart |
News |
PowerRating),
-2.24% at 122.90, was downgraded by Bank of America to “neutral” from “buy”.

Car maker
General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), -2.83% t 35.62, was downgraded by UBS Warburg to “neutral” from “buy”.

Communications services company
SBC
Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), -1.77% at 22.12, was downgraded by RBC Capital to
“underperform” from “sector perform”.

Chemical manufacturing company
Cabot Microelectronics
(
CCMP |
Quote |
Chart |
News |
PowerRating), -3.96% at 42.68, had its 2003 estimates
cut by UBS Warburg to $1.65 per share from $2.00 per share.

Regional bank Mellon Financial
(
MEL |
Quote |
Chart |
News |
PowerRating),
-0.99% at 25.75, received positive comments in a Business Week article in which
a fund manager said he sees the stock trading as high as $35 in 18 months.

Chip maker Zoran Corporation
(
ZRAN |
Quote |
Chart |
News |
PowerRating),
+8.00% at 16.74, was upgraded by CIBC to “sector outperform” from “sector
perform” after the company beat its first-quarter earnings by $0.02 with profits
of $0.04 per share.

Scientific and instrument company Becton
Dickinson
(
BEC |
Quote |
Chart |
News |
PowerRating), +3.54% at 36.50 beat its second-quarter earnings by
$0.01 with profits of $0.54 per share. The company has also raised its third and
fourth quarter earnings guidance.

Clothing retailer Columbia Sportswear
(
COLM |
Quote |
Chart |
News |
PowerRating),
+12.79% at 46.12, beat its first-quarter earnings by $0.11 with profits of $0.37
per share.

danielb@tradingmarkets.com

These Two Announcements Could Stir Things Up Monday Morning

BUY THE FEAR, SELL THE GREED

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