This Sector Is Drumming Up Support
After the DJIA
(
$INDU |
Quote |
Chart |
News |
PowerRating) pulled back and
dropped to 10480, the Dow has rallied up a bit as the blue chips are posting
gains at the midpoint. Their positive standing is due in large part to
Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating), JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating) and 3M
(
MMM |
Quote |
Chart |
News |
PowerRating).
Separately, a number of
economic reports, including initial claims (-3K to 377K; consensus 375K) and
business inventories (+0.2%; consensus -0.4%), were released before the open,
but they have had a negligible impact on the overall action.
The Nasdaq
(
COMPQ |
Quote |
Chart |
News |
PowerRating) is hanging on to
its positive gains at the midpoint. One sector that has been positive on the
day is the PHLX Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating). The SOX is
rebounding from a bout of profit-taking that saw the SOX drop nearly 9% over the
first three sessions of the week. Prior to the start of trading, Deutsche Banc
Alex.Brown lowered its 2002 PC unit growth forecast to 5% from 10% and cut its
earnings estimates on a number of computer hardware and electronics
manufacturing service companies.
The market has also drummed up support from the
Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating), beverage, restaurant, Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
and Cyclical
(
$CYC.X |
Quote |
Chart |
News |
PowerRating) sectors. The cyclicals are among the
market’s best-performing stocks. Among the weak sectors, oil drilling,
homebuilding, PC and airline components are weighing on the broader market.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) is pulling back from the high. GPI has support at 36.70.
GPI has a
TradingMarkets.com RS3 rating of 93 and an uptrending
ADX of 31.
KLA-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating) is bouncing out of a pullback to
its 20-day moving average. The stock carries a
3-month relative strength rank of 90 from TradingMarkets.com.
Norfolk Southern
Corporation
(
NSC |
Quote |
Chart |
News |
PowerRating) is pulling back
from its high. NSC has pulled back and tested its 24.00 support line. NSC has a
TradingMarkets.com RS3 rating of 90 and an uptrending
ADX of 40.
Alliant Techsystems
(
ATK |
Quote |
Chart |
News |
PowerRating) is trading in a
small triangle at the level of its recent high. ATK carries a
3-month relative strength rank of 81 along with an uptrending ADX of 45 from
TradingMarkets.com.
Advanced Energy Industries
(
AEIS |
Quote |
Chart |
News |
PowerRating) is
pulling back from its recent highs. AEIS is carrying a
3-month relative strength rank of 97 from TradingMarkets.com.