Three Trend Confirmations

March 11, 2003
Daniel Beighley

The
major averages sold off for the second day in a row with the Dow and
S&P 500 making new lows for the year. Price action closed at the bottom of
daily ranges, as broad-based selling was confirmed by similar moves in the
semiconductors, broker/dealers, and retail. On the UN front, the US and UK
announced they would consider altering their deadline given for Iraq
disarmament, though would not hold out for the 45-day deadline proposed by
“swing” nations on the UN Security Council.

The loan positive sector at the
close was consumer
(
$CMR.X |
Quote |
Chart |
News |
PowerRating), +0.16%.

In economic news, wholesale
inventories fell 0.2% vs. an expected gain of 0.2%.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was -070 at 117 190.

The US dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was +0.16 at 98.08.

Volume was average,
with the NYSE coming in at 1,379,413,000 and
the Nasdaq at 1,238,153,000.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.40, and down
volume over up volume by a 2.50 ratio. Nasdaq declining issues over advancing
issues came in at 1.21, and down volume beat up volume by a 1.79 ratio.

The
VIX
was +0.23 at 38.08. The TRIN
was -4.09 at 1.77.

Leading the Dow down were:

Stocks in the news:

Appliance maker Maytag
(
MAY |
Quote |
Chart |
News |
PowerRating), -0.39% at 18.01,
issued a profit warning, saying it won’t meet its first-quarter estimates due to
weakness in its Hoover floor-care products.

Mobile phone giant Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating), +0.23% at 12.90, said that first-quarter revenue will come in at the
low end of expectations with its networks division posting a loss.

Aerospace company Goodrich
(
GR |
Quote |
Chart |
News |
PowerRating), -0.48% at 13.60, sold off after announcing lowering its earnings
guidance for the year.

Food processing company Heinz
Co.
(
HNZ |
Quote |
Chart |
News |
PowerRating), +0.26% at 29.70, beat its third-quarter earnings by $0.02
with profits of $0.54 per share.

Drug maker King
Pharmaceutical
(
KG |
Quote |
Chart |
News |
PowerRating), -23.45% at 12.17, announced that it is being
investigated by the SEC, though is not aware of any specific reasons for it.

In the airline sector, Delta
Airlines
(
DAL |
Quote |
Chart |
News |
PowerRating), -1.91% at 6.75, announced that it expects negative
revenue in the first-quarter due to “depressed consumer demand.”

Education company Sylvan
Learning Systems
(
SLVN |
Quote |
Chart |
News |
PowerRating), +30.09% at 14.87, rallied after the company
said it will now focus only on its post-secondary education, while eliminating
its K-12 business and Sylvan Ventures unit.

Travel reservations company Sabre
Holdings
(
TSG |
Quote |
Chart |
News |
PowerRating), -3.28% at 15.01, lowered its guidance for the
first-quarter and expects earnings per share to come in at $0.38-0.42 per share
vs. previous estimates of $0.47-0.52 per share.

Home improvement retailer Sherwin
Williams Co.
(
SHW |
Quote |
Chart |
News |
PowerRating), -3.04% at 24.82, issued an earnings warning for the
first-quarter, and now sees earnings per share at $0.20-0.23 vs. previous
estimates of $0.25.

danielb@tradingmarkets.com

Three Trend Confirmations

BUY THE FEAR, SELL THE GREED

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