Today’s Top Two Market Movers…
Price
action on the indexes gapped up off the open and went into chop mode
for the entire session with mild sell-offs at the close.
Big gains were made in
Internet
(
$DOT.X |
Quote |
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PowerRating), +6.04%, telecoms
(
$IXTC.X |
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Chart |
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PowerRating),
+5.21%, semiconductors
(
$GSM.X |
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Chart |
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PowerRating), +5.14%, and software
(
$GSO.X |
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Chart |
News |
PowerRating),
+4.77%.
Small losses were made in
pharmaceuticals
(
$DRG.X |
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PowerRating), -0.21%, healthcare
(
$HCX.X |
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Chart |
News |
PowerRating),
-0.19%.
Today’s market mover was the
employment data coupled with a better-than-expected mid-quarter report from
Intel. Many are speculating the day’s move to be little more than short
covering, though uncertainties over issues with American involvement in Iraq may
also be weighing on the equation. No matter what the scenario,
Dave Landry‘s big blue arrow is still pointing down.
The Dow Jones Industrial
Average (
(
$INDU.X |
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Chart |
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PowerRating) closed +1.73% at 8427.20. The S&P 500
(
$SPX.X |
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PowerRating)
closed +1.67% at 893.91. The Nasdaq
(
$COMPQ |
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PowerRating) closed +3.54% at
1295.29.
The Semiconductor Index
(
$SOX.X |
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PowerRating), +4.76% at 288.47, closed at the top of its daily range. The
Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), +2.33% at 391.64, closed just below its
50-day SMA, at the top of its daily range.
U.S. Treasury Bonds
closed -1’19 at 111’26..
In economic news, the
average workweek came in at 34.1 vs. an expected 34.2; hourly earnings
were at an expected 0.3%; nonfarm payrolls disappointed with a 39,000
reading vs. the expected 30,000; and the unemployment rate was 5.7% vs.
an anticipated 5.9%.
Volume was below average
at 1,343,213,530
on the NYSE, and 1,262,127,044
on the Nasdaq.
Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 2.59, and up
volume over down volume by a 2.57 ratio. Nasdaq advancing issues over declining
issues came in at 2.22, and up volume beat down volume by a 5.56 ratio.
The
VIX was -2.19 at 41.04. The
TRIN was -0.54 at 1.01.
Chip giant Intel Corp.
(
INTC |
Quote |
Chart |
News |
PowerRating),
+7.21% at 16.20, announced that its third-quarter sales will come in at the
lower end of its forecast made in July. This was received as positive news,
after the stock had been selling lower on fears of a worse report.
Elsewhere in the semiconductor
sector, Teradyne
(
TER |
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PowerRating), +7.90% at 12.42, Novellus
(
NVLS |
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Chart |
News |
PowerRating),
+6.68% at 23.46, Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating), +6.37% at 18.35, Texas
Instruments
(
TXN |
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Chart |
News |
PowerRating), +7.62% at 20.04, and Applied Materials
(
AMAT |
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Chart |
News |
PowerRating),
+7.20% at 12.94 .
Also benefiting from Intel’s
news were tech power houses Hewlett-Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating), +5.05% at 13.50,
and Microsoft
(
MSFT |
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Chart |
News |
PowerRating), +4.13% at 44.03, on the belief that a recovery
in the sector will be wider spread.
Home builder Lowe’s
(
LOW |
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Chart |
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PowerRating),
+4.13% at 44.03, was upgraded by CSFB to “buy” from “hold” in expectations that
it will benefit from a home refinancing boom.
Cigarette company RJ
Reynolds
(
RJR |
Quote |
Chart |
News |
PowerRating), -9.73% at 52.58, lowered its third-quarter earnings
guidance to $1.45-$1.75 a share vs. an analyst consensus of $2.21. The company
has also reduced its full year outlook to $6.85-$7.30 a share vs. analysts
expectations of $8.04.
Merrill Lynch took its turn in
downgrading chip stocks, as Maxim Integrated
(
MXIM |
Quote |
Chart |
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PowerRating), +3.11% at
28.84, and Analog Devices
(
ADI |
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Chart |
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PowerRating), +3.75% at 23.50, were lowered due to
a belief that there is a diminishing likelihood for a strong fourth-quarter.
Medical equipment and supply
company Guidant
(
GDT |
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Chart |
News |
PowerRating), +0.32% at 36.82, was downgraded by SG
Cowen to “neutral” from “buy.”