This Could Get The Bulls Charging
The
markets came under selling pressure this Friday, with the Dow and S&P
500 finding support at their 50-day simple moving averages, and the Nasdaq
closing just above this mark. Volume was at its lowest for an overall light
week. Price action had the indexes closing at the bottom of their daily ranges,
which could be a negative going into Monday morning. The 10-Year Note
(
TYH3 |
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PowerRating) raised eyebrows as it sold off with the equity indexes, possibly on
concerns of higher interest rates in the future, and negative comments from
Pimco’s Bill Gross. Gold
(
GCG3 |
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PowerRating) followed through on yesterday’s
breakout with another gain.
Dow Jones Industrial Average
(
$INDU.X |
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PowerRating) closed -1.22% at 8,433.85. The S&P 500
(
$SPX.X |
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PowerRating)
closed -1.33% at 889.50. The Nasdaq
(
$COMPQ |
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PowerRating) closed -2.64% at
1,362.60.
Topping the gainers list today
were natural gas
(
$XNG.X |
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PowerRating), +3.29%, gold
and silver
(
$XAU.X |
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PowerRating), +2.33%, and utilitiesÂ
(
$UTIL.X |
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Chart |
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PowerRating),
+1.34%.Â
And leading to the downside
were Internet
(
$INX.X |
Quote |
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PowerRating), -3.87%, software
(
$GSO.X |
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Chart |
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PowerRating),
-3.83%, semiconductors
(
$SOX.X |
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Chart |
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PowerRating), -3.70%, and biotechnology
(
$BTK.X |
Quote |
Chart |
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PowerRating), -3.26%.
In economic news, Michigan
sentiment came in at 87.0 vs. expectations of 85.0, PPI fell 0.4% vs.
expectations of no change, core PPI dropped 0.3% vs. expectations of no
change, and business inventories rose at an expected 0.2% rate.
The 10-year U.S. Note
was -105 at 112 225.
The Dollar was -0.54 at
104.46.
Volume was well below
average, with the NYSE coming in at 1,231,385,000 and the Nasdaq at
1,353,543,000.
Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.94, and down
volume over up volume by a 2.64 ratio. Nasdaq declining issues over advancing
issues came in at 2.22, and down volume beat up volume by a 7.37 ratio.
The
VIX was +1.31 at 32.12. The
TRIN was +0.24 at 1.34.
Leading the Dow lower:
Intel Corp.
(
INTC |
Quote |
Chart |
News |
PowerRating), -3.35% at 17.58, United
Tech
(
UTX |
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Chart |
News |
PowerRating), -3.31% at 60.10, Home Depot
(
HD |
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Chart |
News |
PowerRating), -3.29% at 26.39,
Microsoft Corp.
(
MSFT |
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Chart |
News |
PowerRating), -3.08% at 52.50, General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), -2.45% at 36.52, and JP Morgan
(
JPM |
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News |
PowerRating), -2.19% at 23.62.
Stocks in the news:
Deutsche Bank has initiated
“sell” ratings on Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating), -4.24% at 16.70,
Microchip Technology
(
MCHP |
Quote |
Chart |
News |
PowerRating), -3.80% at 24.75, Advanced Micro Devices
(
AMD |
Quote |
Chart |
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PowerRating), -5.54% at 7.32,and Atmel
(
ATML |
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PowerRating), -11.89% at 2.74. The
form also initiated “hold” ratings on Altera
(
ALTR |
Quote |
Chart |
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PowerRating), -1.81% at
11.92, Xilinix
(
XLNX |
Quote |
Chart |
News |
PowerRating), -4.76% at 20.37, and Micron Technology
(
MU |
Quote |
Chart |
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PowerRating), -4.27% at 12.99. And a “buy” rating was initiated to Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
-3.35% at 17.58.
JP Morgan also took to the
semis with the belief that the industry will remain depressed through the
first-quarter. Though counter to Deutsche Bank’s analyst action, it rates
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), -3.35% at 17.58, an “underweight” and Microchip
Technology
(
MCHP |
Quote |
Chart |
News |
PowerRating), -3.80% at 24.75, an “overweight.”
Software maker  Adobe
(
ADBE |
Quote |
Chart |
News |
PowerRating),
-0.30% at 25.79, beat its fourth-quarter earnings expectations by $0.02 with
profits of $0.25 per share.
Goldman Sachs has reduced its
outlook on the video game sector with downgrades to “underperform” from
“in-line” given to Electronic Arts
(
ERTS |
Quote |
Chart |
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PowerRating), -7.57% at 56.70,
Activision
(
ATVI |
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Chart |
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PowerRating), -8.14% at 15.66, and THQ Incorporated
(
THQI |
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Chart |
News |
PowerRating),
-1.98% at 14.34.
Medical equipment and supplies
company Cooper Industries
(
COO |
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Chart |
News |
PowerRating), 18.13% at 25.05, has beat its
fourth-quarter earnings by $0.01 with profits of $0.52 per share.
Auto retailer Autozone
(
AZO |
Quote |
Chart |
News |
PowerRating),
-8.86% at 68.51, has been downgraded by Goldman Sachs to “in-line” from
“outperform.”
Dow stock Coca-Cola [KO||KO],
-0.04% at 45.85, said that it is “comfortable” with its 2003 estimates, though
said it will no longer give earnings guidance in the future.
Computer services company
Electronic Data Systems
(
EDS |
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PowerRating), +4.02% at 19.64, announced a 10-year deal
with Bank of America
(
BAC |
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PowerRating), -1.85% at 68.25, worth $4.5 billion.
Gold stocks turned in another
solid performance, as Anglogold
(
AU |
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Chart |
News |
PowerRating), +4.04% at 19.64, Goldcorp.
(
GG |
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Chart |
News |
PowerRating), +3.44% at 12.62, Newmont Mining
(
NEM |
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Chart |
News |
PowerRating), +3.16% at 29.00, and
Placer Dome
(
PDG |
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Chart |
News |
PowerRating), +3.55% at 11.36.
From TM’s
Implosion List, capital goods company SPX Corp.
(
SPW |
Quote |
Chart |
News |
PowerRating), -10.73% at
37.18, video game company Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating), -7.57% at 56.70,
and auto retailer Autozone
(
AZO |
Quote |
Chart |
News |
PowerRating), -6.86% at 68.51.