This Key Support Is Holding The Dow
The
market is under water midday, as price action opened flat then moved
lower on the heels of key economic data. Semiconductors reflect the biggest
losses after being hit with a downgrade from Salomon Smith Barney. Meanwhile,
defensive issues have gained ground with the 10-year notes advancing above
yesterday’s highs, and gold-mining stocks holding with a modest gain. The Dow is
trading at the key support of its 200-day simple moving average.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) is -1.31% at 8,329.60. The S&P 500
(
$SPX.X |
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PowerRating)
is -1.13% at 901.13. The Nasdaq
(
$COMPQ |
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PowerRating) is -1.25% at 1,438.96.
Winners are in gold and
silver
(
$XAU.X |
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PowerRating), +0.80%, and healthcare providers
(
$RXH.X |
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PowerRating), +0.29%.
Biggest losses are in
semiconductors
(
$SOX.X |
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PowerRating), -4.95%, computer hardware
(
$GHA.X |
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PowerRating),
-2.89%, chemicals
(
$CEX.X |
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PowerRating), -2.43%, and networking
(
$NWX.X |
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PowerRating),
-2.06%.
In economic news, GDP-adv.
came in at 1.6% vs. expectations of 2.3%, chain deflator-adv. was at 2.5%
vs. expectations of 2.0%, Michigan sentiment rose to 86.0 vs.
expectations of a reading of 85.0, existing home sales came in at 5.53M
vs. expectations of 5.72M, and new home sales were at 1012K vs.
expectations of 905K.
The 10-year U.S. Note
is +090 at 114 285.
The dollar is -0.02 at
98.54.
Gold is -0.30 at 334.50.
Crude Oil -0.09 at
26.55.
Volume is at 620,896,000
on the NYSE, and at 824,402,000 on the Nasdaq.
Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 1.71, and down
volume over up volume by a 3.32 ratio. Nasdaq declining issues over advancing
issues are at 1.56, and down volume is over up volume by a 2.63 ratio.
Biggest Dow losers are:
Altria
(
MO |
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PowerRating),
-5.20% at 31.19, Intel Corp.
(
INTC |
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PowerRating), -3.80% at 18.23, Merck
(
MRK |
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PowerRating),
-3.30% at 56.37, Johnson & johnson
(
JNJ |
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PowerRating), -2.54% at 56.04, General
Motors
(
GM |
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PowerRating), -2.45% at 27.86, and Eastman Kodak
(
EK |
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PowerRating), -2.71% at
29.09.
Stocks in the news:
Tobacco company RJ Reynolds
(
RJR |
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PowerRating),
-16.64% at 28.51, lowered its 2003 earnings guidance after posting lower sales
in the first-quarter.
Oil company Anadarko Petroleum
(
APC |
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PowerRating),
-0.95% at 45.96, beat its first-quarter earnings by $0.01 with profits of 46.40
per share.
Personal product maker Avon Products
(
AVP |
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PowerRating), -1.32% at 56.78, beat its first-quarter earnings by $0.01 with
profits of $0.42 per share. The company also said it expects to meet its targets
for the full year.
Online bookseller Amazon.com
(
AMZN |
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PowerRating),
+13.58% at 28.53, beat its first-quarter earnings expectations by $0.06 with
profits of $0.10 per share. The company has also raised its full year revenue
guidance to $4.7 billion vs. previous estimates of $4.6 billion.Â
Coffee retailer Starbucks
(
SBUX |
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PowerRating),
-6.46% at 23.60, has reported second-quarter earnings in-line with with
expectations at $0.13 per share.
Conglomerate
3M Company
(
MMM |
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PowerRating),
-1.57% at 123.75, has been downgraded by Bank of America to “neutral” from
“buy”.
Car maker
General Motors
(
GM |
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PowerRating), -2.45% t 35.76, has been downgraded by UBS Warburg to “neutral” from
“buy”.
Communications services company
SBC
Communications
(
SBC |
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PowerRating), -2.44% at 21.97, has been downgraded by RBC
Capital to “underperform” from “sector perform”.
Chemical manufacturing company
Cabot Microelectronics
(
CCMP |
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PowerRating), -3.20% at 43.02, had its 2003 estimates
cut by UBS Warburg to $1.65 per share from $2.00 per share.
Regional bank Mellon Financial
(
MEL |
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PowerRating),
-0.15% at 25.97, received positive comments in a Business Week article in
which a fund manager said he sees the stock trading as high as $35 in 18 months.
Chip maker Zoran Corporation
ZRAN|ZRAN], +8.39% at 16.80, has been upgraded by CIBC to “sector outperform”
from “sector perform” after the company beat its first-quarter earnings by $0.02
with profits of $0.04 per share.
Scientific and instrument company Becton
Dickinson
(
BEC |
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PowerRating), +1.99% at 35.95 beat its second-quarter earnings by
$0.01 with profits of $0.54 per share. The company has also raised its third and
fourth quarter earnings guidance.
Clothing retailer Columbia Sportswear
(
COLM |
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PowerRating),
+13.55% at 46.43, beat its first-quarter earnings by $0.11 with profits of
$0.37 per share.
From TM’s
TM’s
Implosion List, electronics manufacturer Sony Corp.
(
SNE |
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Chart |
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PowerRating), -9.36%
at 24.70, and computer services company Overture Services
(
OVER |
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PowerRating),
-5.83% at 10.82.