This Is A Good Sign From A Leading Sector

April 1, 2003
Daniel Beighley

The
major indexes posted gains on the day as price action crept higher
throughout most of the session with overall good feelings on the suspicion
Saddam Hussein could be dead.Â The leader of Iraq was to go on live TV
midday but did not show up. Disappointing manufacturing news had little effect
on the market, indicating stronger commitment from buyers who did not seem to
care. Any time we see the market go against what the news suggests, it’s a sign
of strength. This being the first day of the second quarter, we were looking to
see where new money might be going. It is encouraging to see the broker/dealers
at the top of the gainers list, as this sector is often an overall market
leader.

In economic news, the ISM
Index disappointed at 46.2 vs. expectations of 49.0, and construction
spending fell 0.2% vs. expectations of a 0.8% decline.

The Ten Year NoteÂ
was -005 at 114 275.

The US dollar was +0.09
at 99.58.

Volume was average,
with the NYSE coming in at 1,414,555,000 and the Nasdaq at 1,393,789,000.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 2.20, and up
volume over down volume by a 2.44 ratio. Nasdaq advancing issues over declining
issues came in at 1.44, and up volume beat down volume by a 1.31 ratio.

The
VIX
was -1.27 at 32.10. The TRIN
was -1.69 at 0.88.

Top Dow gainers were:

Stocks in the news:

In the chip business, Cree
(
CREE |
Quote |
Chart |
News |
PowerRating), +16.57% at 21.59, rallied after Sumitomo Corp. announced it will
purchase $100 million worth of its light emitting diode products.

Gold mining company Agnico-Eagle
Mines
(
AEM |
Quote |
Chart |
News |
PowerRating), -2.08% at 11.03, sold off after announcing that a rock fall
at one of its mines could lead to a 20% reduction in total productivity for the
year.

Healthcare facilities company Express
Scrips
(
ESRX |
Quote |
Chart |
News |
PowerRating), -3.80% at 53.58, was down after requesting an extension
to report its 10-K filings with the SEC.

Airline stocks are up nicely
after the parent of American Airlines AMR Corp.
(
AMR |
Quote |
Chart |
News |
PowerRating), +42.85 at
3.00, announced that it has made deals with its workers’ unions that will
prevent it from filing for bankruptcy.

Metal mining company Alcan
(
AL |
Quote |
Chart |
News |
PowerRating), -1.43% at 27.50, issued a first-quarter profit warning due to higher
costs in fuel, raw materials, and recycled metal.

Car maker General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), -0.53% at 33.80, announced an offer for new car buyers with 0%
financing for 5 years.

Also in the auto industry, Ford
Motor
(
F |
Quote |
Chart |
News |
PowerRating), -0.53% at 7.48, announced that its March sales fell 4.4%.

Aerospace and defense company General
Dynamics
(
GD |
Quote |
Chart |
News |
PowerRating), +0.59% at 55.40, had its 2003 earnings estimates cut by
Merrill Lynch to $4.70 from $5.51.

Investment services company Labranche
(
LAB |
Quote |
Chart |
News |
PowerRating), -5.38% at 17.39, lowered its earnings guidance to $0.06-0.08 per
share vs. a consensus of $0.25.

Electric utilities company Dominion
(
D |
Quote |
Chart |
News |
PowerRating), +0.55% at 55.68, was downgraded by UBS Warburg to “neutral”
from “buy”.

Gaming company International
Gaming Technology
(
IGT |
Quote |
Chart |
News |
PowerRating), -1.89% at 80.35, was downgraded by UBS Warburg
to “neutral” from “buy”.

Internet company Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating), -5.12% at 22.79, was downgraded by Salomon Smith Barney to
“in-line” from “outperform”.

Online auctioneer eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating),
+0.94% at 86.12, had its price target raised by CSFB to $100 from $85.

Video retailer Best Buy Inc.

(
BBY |
Quote |
Chart |
News |
PowerRating), +1.40% at 27.35, lowered its earnings guidance for the
first-quarter to $0.14-0.20 per share vs. a consensus of $0.22. The company also
reported fourth-quarter earnings of $1.10 per share, a penny above consensus
estimates.

Financial services company Fannie
Mae
(
FNM |
Quote |
Chart |
News |
PowerRating), +2.21% at 66.80, had its growth rate forecast cut by Morgan
Stanley to 11% from 13%, and has had its price target lowered to $92 from $100.

From TM’s Implosion List,
tobacco company RJ Reynolds
(
RJR |
Quote |
Chart |
News |
PowerRating), -5.36% at 30.53.

danielb@tradingmarkets.com

This Is A Good Sign From A Leading Sector

BUY THE FEAR, SELL THE GREED

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