This Bellwether Is Lagging The Action

March 7, 2003
Daniel Beighley

The major indexes are modestly
higher midday after a lower open (on the heels of disappointing employment data)
that turned into a rally on the rumor Bin Laden’s sons had
been arrested in Afghanistan. At the time this is written, US and Pakistani
officials cannot confirm the capture. The big employment downer was nonfarm
payrolls falling 308K vs. expectations of a 20K rise. Meanwhile, all eyes and
ears are on the UN as the topic of disarming Iraq pace out what President Bush
described last night as the final stages of diplomatic resolve. The bellwether
semiconductor sector is lagging the tech sector in slight negative territory.

natural gas
(
$XNG.X |
Quote |
Chart |
News |
PowerRating), -0.44%.

In economic news, nonfarm payrolls fell
308K vs. expectations of an increase of 20K, the unemployment rate came
in at an expected 5.8%, hourly earnings rose 0.7% vs. expectations of
0.3%, and the average workweek was at 34.1 vs. expectations of 34.2.

The 10-year US Note
is +050 at 117 115.

The dollar is -0.31 at
98.06.

Gold is -6.90 at 350.00.

Crude OilÂ +0.94 at
37.35.

Volume is at 688,798,000 on the NYSE, and at
761,350,000 on the Nasdaq.

Market breadth is mostly positive, with NYSE
advancing issues over declining issues by a ratio of 1.25, and up volume over
down volume by a 1.75 ratio. Nasdaq advancing issues over declining issues are at
1.62, and down volume over up volume is at a 1.34 ratio.

Leading the Dow are:

Stocks In The News:

Chip giant Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), -3.40% at
16.13, announced at its mid-quarter update that it expects revenue to come in
below previous expectations. Much optimism was built into this announcement
after Lehman Brothers’ Dan Niles spoke positively of the company, and the stock
is down sharply in the pre-market.

Aluminum maker Alcao
(
AA |
Quote |
Chart |
News |
PowerRating), -1.25% at
18.98, sold off after Merrill Lynch lowered its first-quarter estimates on the
company to $0.15 per share vs. previous expectations of $0.20 per share.

Advertising company
Interpublic Group
(
IPG |
Quote |
Chart |
News |
PowerRating), +0.93% at 8.67, posted earnings $0.13 below
expectations and guided lower for 2003. Earnings were down 79% from a year ago.

Computer networking company
3Com
(
COMS |
Quote |
Chart |
News |
PowerRating), -10.22% at 4.04, announced that it expects third-quarter
revenue to come lower than expected, with new estimates for $240-245 million vs.
previous estimates of $270 million

Mobile phone company Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating), -2.82%
at 12.74, has been upgraded by JP Morgan to “overweight” from “neutral”, though
does not expect the company to give a positive update on March 11.

Aerospace and defense company Boeing Co.
(
BA |
Quote |
Chart |
News |
PowerRating),
-1.95% at 25.65, is down in the pre-market after after CEO Phil Condit said it
may acquire European defense companyÂ BAE Systems.

Casino company Mandalay Resort Group
(
MBG |
Quote |
Chart |
News |
PowerRating),
+7.89% at 25.58, has beat its fourth-quarter earnings by $0.02 with profits of
$0.15 per share.

Drug maker GlaxoSmithKline
(
GSK |
Quote |
Chart |
News |
PowerRating), +0.15%
at 34.24, has received approval from the EU for drug Levitra, a rival of Viagra.

In the biotech sector Gilead Sciences
(
GILD |
Quote |
Chart |
News |
PowerRating),
+7.09% at 36.56, has had its estimates raised by JP Morgan which names the company
as their top pick in the sector.

danielb@tradingmarkets.com

This Bellwether Is Lagging The Action

BUY THE FEAR, SELL THE GREED

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