This Benchmark — And The Sector — Is Pointing Up

August 7, 2003
Vincent Mao

The retail index
(
$RLX.X |
Quote |
Chart |
News |
PowerRating)
bounced off support at its 50-day moving average. Its next area of resistance
comes in at the 340 level. Productivity surged in the second quarter. Meanwhile
initial jobless claims came in under the critical 400,000 level for the third
straight week. Bonds are slightly lower after the positive economic reports. The
Treasury Department is set to issue $18 billion in 10-year notes later today.
The dollar is lower today and gold is higher.

In economic news today,
Initial Jobless Claims for the week ended August 2 fell by 3,000 to 390,000.
Claims are at the lowest level since February 8. Economists had expected claims
to come in at 395,000. The closely watched four-week moving average fell to
397,250. This was the first sub 400K reading since February 15th.
Productivity for Q2 came jumped 5.7% compared to an expected rise of 4%.
Lastly Wholesale Inventories in June came in flat as expected.

The 10-year U.S. Note
is -015 at 112 050.

The dollar is -0.49 at
95.93.

Gold is +1.40 at 353.80.

Crude Oil +0.58 at
32.28.

Volume is 714,000,000 on
the NYSE, and 935,000,000 on the Nasdaq.

Market breadth is mixed,
with NYSE advancing issues over declining issues by 1.31, and up volume over
down volume by 1.44. Nasdaq declining issues over advancing issues at 1.33, and
down volume over up volume at 1.46.

Top Dow stocks are:

Stocks in the news:

Apparel retailer American
Eagle Outfitters
(
AEOS |
Quote |
Chart |
News |
PowerRating) is lower by nearly 13% after the company
reported much worse-than-expected July same-store sales. The company reported a
10.5% drop in July same-store sales, analysts had been looking for a 3.7% drop.
American Eagle will report its second-quarter results on August 14.

Drug maker Amylin
Pharmaceuticals
(
AMLN |
Quote |
Chart |
News |
PowerRating) is higher by 13% after the company announced
positive results for its experimental diabetes drug, Exenatide. The trial was
"statically significant" in reducing glucose levels set by American Diabetes
Association. Amylin is developing the drug with Eli Lilly.

Ann Taylor Stores
(
ANN |
Quote |
Chart |
News |
PowerRating)
is higher by 4.7% after the company raised its second-quarter guidance. The
company now sees earnings between 44 to 45 cents a share compared to consensus
estimates of between 39 to 41 cents a share. Ann Taylor also reported a 7.6%
jump in same-store sales.

Electronics retailer Best
Buy
(
BBY |
Quote |
Chart |
News |
PowerRating) is higher by over 9% after the company raised second-quarter
and full-year guidance. Due to higher same-store sales, improved cost control,
and sales of higher margin merchandise, the now sees second-quarter results
between 37 to 42 cents a share and full year results between $2.27 and $2.32 a
share. Previously, Best Buy expected second-quarter and full-year results of 27
to 32 cents a share and $2.17 to $2.22 a share, respectively.

Department store operator
Federated Department Stores
(
FD |
Quote |
Chart |
News |
PowerRating) is higher by 2.5% after reporting a 0.4%
slip in July same-store sales. However this was better than an anticipated 1% –
2% drop. Federated also raised its second-quarter outlook from between 50 to 55
cents a share to between 60 to 63 cents a share.

Retail giant Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating)
is higher by 2.3% after the company reported a 4.5% jump in same-store sales or
above its own forecast of 2 to 4 percent. The Dow component also said that it
expects to earn 52 cents for the second quarter or a penny above current
estimates.

If you have any comments or
questions, please feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

This Benchmark — And The Sector — Is Pointing Up

BUY THE FEAR, SELL THE GREED

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