This Will Influence Tomorrow’s Open

April 14, 2003
Daniel Beighley

The
major indexes put in a positive performance for the day as price
action closed out at the top of its daily range. The Dow and S&P 500 closed
right above their 200-day simple moving averages as the market leading
broker/dealers took the top slot for biggest gainers. With earnings now the main
focus of traders, today’s action showed encouraging moves from financial
companies Citigroup and Bank of America, who both easily beat expectations.

However, this holiday week is
far from over as we have a series of earnings announcements scheduled from Dow
companies including IBM, which after the bell announced posted a penny below
expectations, though beat on revenue. IBM is always a potential market mover,
and will likely have a heavy influence on tomorrow’s open.

In economic news, business
inventories rose 0.6% vs. expectations of a 0.2% gain.

The Ten Year Note was
-110 at 113 250.

The US dollar was -0.25
at 100.31.

Volume was well below
average, with the NYSE coming in at 1,088,567,000 and the Nasdaq at
1,153,030,000.

Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 2.78, and up volume over
down volume by a 6.32 ratio. Nasdaq advancing issues over declining issues came
in at 1.88, and up volume beat down volume by a 3.75 ratio.

The

VIX was -1.80 at 26.47. The

TRIN was -0.58 at 0.42.

Leading the Dow were:

Stocks in the news:

Also in the money center bank biz,
JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), +3.71% at 26.54, was the subject of a positive Wall
Street Journal article which claims no current news on the stock looks good,
given the company’s recent setbacks.

Financial services company Fannie Mae
(
FNM |
Quote |
Chart |
News |
PowerRating), +3.59% at 71.49, beat its first-quarter earnings by $0.10 with
profits of $1.84 per share.

Drug maker Osip Pharmaceuticals
(
OSIP |
Quote |
Chart |
News |
PowerRating),
+10.39% at 16.89, was upgraded by Merrill Lynch to “buy” from “neutral”.

Capital goods company Eaton
(
ETN |
Quote |
Chart |
News |
PowerRating),
+5.25% at 76.10, beat its first-quarter earnings expectations by $0.11 with
profits of $0.95 per share. The company has also guided higher for the
second-quarter.

Also in the capital goods business,
Cummins
(
CUM |
Quote |
Chart |
News |
PowerRating), +1.07% at 25.47, lowered its earnings guidance, and now
expects to take a loss between $0.85-0.95 per share vs. a consensus for a loss
of $0.57.

Conglomerate Temple-Inland
(
TIN |
Quote |
Chart |
News |
PowerRating),
+4.08% at 41.56, was the subject of a positive Barron’s article which
claimed the stock is poised to go higher if the company were to sell its savings
and loan bank, Guaranty.

danielb@tradingmarkets.com

This Will Influence Tomorrow’s Open

BUY THE FEAR, SELL THE GREED

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