Three Sectors To Watch Tomorrow

April 16, 2002
Daniel Beighley

Stocks bolted out of the gates
this morning, as the major averages held their uptrends for the session to
capture nice gains at the close. Leading the broad-based rally were the
telecoms, networking, and semiconductors, while REITs and gold and silver made
losses. Market internals were notably strong, marking solid commitment for the
day. Be sure to check the market
bias further evidence (updated nightly).

Upbeat announcements from Dow
30 companies helped move the broader markets higher, as new economic data
brought mixed results. The consumer price index rose 0.3% for March, its
largest increase in six months, though short of the 0.5% expected by economists.
The core index rose 0.1%, falling short of the 0.2% expected. March industrial
production rose 0.7%, topping expectations of 0.5% through the biggest rise
since May 2000. And March housing starts fell 7.8% to an annual rate of
1.65 million, falling short of the 1.68 million expected. March new
building permits fell 10%.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 2.38, and up–volume
over down–volume
by a 6.24 ratio. Nasdaq advancing issues over declining issues came in at 2.46,
and up–volume
beat down–volume
by a 7.89 ratio. The
VIX
was down 2.08 at 20.30. The TRIN
was down 0.74 at 0.38.

Average volume moved the Dow
above its 50-day MA, but was halted by its 20-day MA, while the S&P 500
closed on its 50-day MA, and the Nasdaq touched and fell short of its 50-day MA.
The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), up 5.55%, cruised above its
50-day MA. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), up 3.08%, closed on
its 50-day MA.

Money center bank Fleet
Boston Financial Corp (FBF),
up 8.06% at 36.18, announced that it plans to sell its Robertson Stephens
investment bank and reduce its exposure to venture capital. The bank’s portfolio
in 2001 fell more than any other top-10 U.S. bank.

Chip maker Novellus Systems Inc (NVLS),
up 6.07% at 53.46, said that it expects to earn 6 cents a share for the second
quarter, with previous
estimates looking for a loss of 1 cent.

Also in the chip sector, Texas Instruments
(TXN),
up 5.13% at 33.78, reported a first quarter
loss of 2 cents a share, compared to profits of 13 cents a year ago. This was
better then expected.

H&R Block
(HRB),
down 5.68% at 41.95, said it expects to earn $2.43 a share for the quarter
ending this month, in line with expectations. The company has raised its tax
preparation fees by 11%.

Business services company Manpower (MAN),
up 3.18% at 40.22, reported earnings of 9 cents a share for the first
quarter, beating
analysts‘
estimates by a penny.

Drug maker Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), up 1.76% at 63.26, beat
its earnings estimates by a penny as it raised its earnings 18% for the first
quarter. The company also said it expects to come in at the high end of its 2002
earnings estimates.

Media giant AOL Time Warner
(
AOL |
Quote |
Chart |
News |
PowerRating), up 0.98% at 21.56, was the
subject of negative comments from Salomon Smith Barney, who lowered its earnings
projections citing challenges in its AOL and cable divisions.

Construction and agricultural machinery company Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating),
down 2.31% at 56.65, fell short of its first quarter profit estimates, though is
confident that it will meet its estimates for the year.

From TM’s proprietary Momentum
List, medical equipment and supplies company, Polymedica Corporations
(
PLMD |
Quote |
Chart |
News |
PowerRating) rose 7.13%.

Three Sectors To Watch Tomorrow

BUY THE FEAR, SELL THE GREED

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