This Could Turn Things Around
At mid-day the markets are coming off
the lows of a broad-based sell-off, with the major indexes attempting to regain
their 50-day moving averages. Poor earnings news from Micron Technology
(
MU |
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Chart |
News |
PowerRating) and
Blockbuster
(
BBI |
Quote |
Chart |
News |
PowerRating) have weighed in heavier on sentiment than upside surprises from
Federal Express
(
FDX |
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Chart |
News |
PowerRating) and
Bear Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating). Standing out today, crude oil prices have
reached their highest level in 2 years, crossing above the $31 a barrel
level. After the close Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) will announce its earnings, which could be a
market turner.
size=2>Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is -0.84% at
8,463.95 The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) is face=Arial size=2>-1.19%face=Arial size=2> at 892.26. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is
 -2.08%style=”mso-bidi-font-size: 10.0pt”> at
1,363.13.
Leading to the upside are gold and
silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), +1.36%, and healthcare providers
(
$RXH.X |
Quote |
Chart |
News |
PowerRating), +0.03%.
The biggest losers are
semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), -5.92%, airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating),
-5.16%, networking
(
$GIP.X |
Quote |
Chart |
News |
PowerRating), -3.75%, and Internet
(
$INX.X |
Quote |
Chart |
News |
PowerRating), -3.61%.
In economic news, the trade
balance for October came in at -$35.1 billion vs. an expected loss of 36.6
billion.
The 10-year U.S.
Note is +165 at 112 300.
The Dollar is +0.11 at
104.11.
Gold is +1.67 at
31.83.
Crude Oil is up 0.35 at
30.45.
Volume is at 633,944,000 on
the NYSE, and 788,089,000 on the Nasdaq.
Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 2.06, and down
volume over up volume by a 3.07 ratio. Nasdaq advancing issues over declining
issues came are at 2.42, and down volume is over up volume by a 7.08 ratio.
Leading the Dow down are:
Intel Corp.
(
INTC |
Quote |
Chart |
News |
PowerRating),
-4.02% at 17.17, JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), -3.47% at 24.15, Walt Disney
(
DIS |
Quote |
Chart |
News |
PowerRating), -3.28% at 16.47, AT&T
(
T |
Quote |
Chart |
News |
PowerRating), -2.56% at 26.56, Johnson
& Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), -2.32%a t 53.40, Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating),
-2.07% at 53.21.
Stocks in the news:
In the chip biz, Micron
Technology
(
MU |
Quote |
Chart |
News |
PowerRating), -20.25 % at 10.59, has reported a first-quarter loss of
$0.32 per share, the company’s eighth consecutive loss.
Video entertainment retailer
Blockbuster Entertainment
(
BBI |
Quote |
Chart |
News |
PowerRating), -29.53% at 13.67, has lowered its
earnings guidance for the full year 2002 to $1.03-$1.10 per share vs. an analyst
consensus of $1.31.
Money center bank Bank of New
York
(
BK |
Quote |
Chart |
News |
PowerRating), -8.45% at 24.26, announced it will take a $390 million
provision and a $240 million charge for its fourth quarter due to aircraft
leases to United Airlines.
Video game company Activision
(
ATVI |
Quote |
Chart |
News |
PowerRating), -20.47% at 12.52, has reduced its sales and profit forecasts for
2003 and into 2004 as the company loses ground to competitors. The stock is a
member of TM’s Implosion List.
Investment services company Bear
Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating), -0.21% at 61.72, beat its fourth-quarter
earnings expectations by $0.12 with profits of $0.12 per share.
Education company Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating), +6.88% at 43.65, beat its first-quarter earnings by $0.07 with
profits of $0.30.
Shipping company Federal
Express
(
FDX |
Quote |
Chart |
News |
PowerRating), -1.47% at 52.81, beat its second-quarter earnings
expectations by $0.02 with profits of $0.81 per share.
Food processing company General
Mills
(
GIS |
Quote |
Chart |
News |
PowerRating), +1.00% at 45.34, came in with better than expected earnings
for its fiscal second-quarter, and increased its outlook for the full fiscal
year.
Biotech and drug stock
MedImmune
(
MEDI |
Quote |
Chart |
News |
PowerRating), +10.40% at 27.59, shot up after it said an FDA
panel recommended approval for a nasal spray flu vaccine.