This Sector’s Resilience: A Sign Of Strength

October 23, 2002
Daniel Beighley

The markets made gains today, with
prices well off the session’s lows after positive words from Fed Chairman
Greenspan helped pep things up. After opening lower, the major indexes attempted
to rally in the first half hour, then sold off to the day’s low by Noon ET,
where buyers stepped up. The semis couldn’t be beat today. After gapping down on
negative news, the sector quickly rebounded to be the top gainer on the day.
This resilience is a sign of strength, and is confirmed by strong moves in the
broker/dealers and retail.

In economic news, the Fed’s beige
book suggested the near-term outlook on the economy remained “sluggish.” On
a bright note, Greenspan suggested the country’s productivity is showing
strength, when he said that productivity estimates may “currently seem a bit out of
place,” but ” a significant step up in growth of productivity appears to have
persisted.”

The 10-year U.S.
Note was +025 at 112 040.

The dollar was +0.06 at
108.25.

Volume was average, at
1,521,759,000 on the NYSE, and
1,571,875,000 on the
Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.64, and up
volume over down volume by a 1.83 ratio. Nasdaq advancing issues over declining
issues came in at 1.70, and up volume beat down volume by a 4.36 ratio.

style=”mso-bidi-font-size: 10.0pt”>The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>VIX
was +0.04 at 108.25. The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>TRIN
was -0.17 at 0.90size=2>.

The Dow’s biggest gainers
were:

Stocks in the news:

Drug maker Eli Lilly

(
LLY |
Quote |
Chart |
News |
PowerRating), -7.79% at 58.09, lowered its earnings guidance for the first
quarter as it sees earnings per share of $0.68-$0.70 vs. a consensus of $0.73.
The company also announced third-quarter earnings in line with estimates.

Security systems company
InVision
(
INVN |
Quote |
Chart |
News |
PowerRating), +1.78% at 35.37, beat its third-quarter earnings
estimates by $0.15 with profits of $1.17 per share. The company also raised its
fourth-quarter estimates.

Online services company
Hotels.com
(
ROOM |
Quote |
Chart |
News |
PowerRating), +2.05% at 58.81, beat its third-quarter earnings
expectations by $0.04 with profits of $0.45 per share. The company has also
raised its 2003 estimates. However, the company has cut its estimates for the
fourth-quarter.

Appliance and tool company Black
and Decker
(
BDK |
Quote |
Chart |
News |
PowerRating), +2.58% at 47.00, beat its third-quarter earnings
expectations by $0.12 with profits of $0.95 per share.

Medical equipment maker Boston
Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating), +2.10% at 38.15, beat its third-quarter earnings by
$0.02 with profits of $0.24 per share.

Chemical company DuPont

(
DD |
Quote |
Chart |
News |
PowerRating), -1.86% at 40.97, said that its earnings more than tripled due to
strength in its coatings and color technology business.

Software company Computer
Associates
(
CA |
Quote |
Chart |
News |
PowerRating), +2.90% at 14.75, reported strong revenue growth and
boosted its outlook for the rest of the year.

Office supply company
International Paper
(
IP |
Quote |
Chart |
News |
PowerRating), – 0.94% at 37.74, reported third-quarter
earnings that beat Wall Street estimates, though revenues were off from a year
ago.

German auto maker
DaimlerChrysler
(
DCX |
Quote |
Chart |
News |
PowerRating), -2.13% at 37.05, beat earnings estimates, and
said it remained cautious for the rest of the year.

This Sector’s Resilience: A Sign Of Strength

BUY THE FEAR, SELL THE GREED

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