This Pattern In Semis Could Be Pivotal
The
major averages opened the session with reversals to the downside,
then bottomed out around 11:30 ET before trending higher into positive territory
for the close. The biggest gainers of the day were Internet, software, computer
technology, and semiconductors, while banks, airlines, insurance, and
transportation stocks were the biggest losers.
Cutting 0.21 below its
September low, the Semiconductor Index
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PowerRating), up 4.18%, was
able to reverse from this level and rally in the afternoon. This could create a
swing point for a potential double bottom, and should be watched closely.
The
Dow Jones Industrial Average
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S&P 500
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closed up 1.64% at 1380.09.
US Treasury Bonds were
unchanged at 103 ’23.
In economic news, claims for state unemployment benefits
fell 11,000 to 382,000 for the past week, its lowest level since March 2001.
Also, Factory orders for May increased 0.7%Â to $321 billion. Both sets of
data show an improving economy.
Market breadth was mostly
negative, with NYSE declining issues over advancing issues by a ratio of
1.69, and down volume over up volume by a 1.04 ratio. Nasdaq declining issues
over advancing issues came in at 1.38, though up volume beat down volume by a
2.14 ratio. The
VIX
was down 0.32 at 33.37. The TRIN
was down 1.83 at 0.72.
Above-average volume had
the Dow, the S&P 500 and the Nasdaq closing near the top of their daily
ranges. Broker/Dealer Index
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PowerRating), down 0.51%, undercut its
recent consolidation, though closed in the upper portion of its daily range.
The top sectors of the
day were the
GSTI Internet Index
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PowerRating),
up 5.94% at 68.09, and the GSTI Hardware Index
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172.52.
Losing
sectors of the day were the FTSE Eurotop 100 Index
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PowerRating),
down 2.69% at 2245.39, and the
Airline Index
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PowerRating)
down 1.53% at 61.63.
Chip maker Advanced Micro Devices (AMD),
down 4.20% at 8.43 has warned for the second time in two weeks that it will not
meet its earnings estimates.
Biotechnology company Genetech
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DNA |
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PowerRating),
down 4.17% at 28.70, was hurt by news that its license and supply agreement with
VaxGen
(
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PowerRating), up 0.86% at 1.16, was revised to give VaxGen more
flexibility in commercializing its AIDSVAX vaccine. The stock was downgraded
earlier in the day by Deutsche Bank Securities.
Wireless solutions company Research In Motion
(RIMM),
up 21.60%at 12.72, reported a loss of 14 cents a share for the quarter ending
June 1 vs. the loss of 22 cents a share the company had previously forecasted.
Communications equipment maker Polycom Inc.
(PLCM),
down 3.66% at 10.50, reported second-quarter profits were 13 cents to 14 cents a
share vs. First Call estimates of 20 cents a share.
Electronics instrument and controls company
Benchmark Electronics (BHE),
up 12.43% at 29.48, announced that their second-quarter earnings will beat
expectations with profits between 29 cents and 31 cents a share vs. previous
estimates of 26 cents a share.