Tomorrow’s Hot Spots

April 22, 2002
Daniel Beighley

The bulls didn’t have a chance
today, as price action took to the downside off the open and never looked back.
Japan, gold and silver, healthcare, and utilities represented select groups of
positive issues, with telecom, Internet, networking, and biotechnology
representing the weakest areas of the day.

U.S. Treasury Bonds were
up 6 at 100’24.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.63, and down–volume
over up–volume
by a 3.15 ratio. Nasdaq declining issues over advancing issues came in at 1.87,
and down–volume
beat up–volume
by a 7.43 ratio. The
VIX
was up 1.27 at 21.57. The TRIN
was up 0.78 at 1.93.

Light volume on the NYSE and
below-average volume on the Nasdaq had the Dow, the S&P 500, and the Nasdaq
move further below their 50-day MAs. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
down 1.66%, moved below its 50-day MA as well.

Communications services company WorldCom
Inc (WCOM),
down 32.94% at 4.01, has lowered its 2002 revenue targets to $21 billion to
$21.5 billion from $22.2 billion to $22.6 billion. The company said its
customers are spending less on data and Internet services.

Also in the communications services industry, Ericsson
(ERICY),
down 22.59% at 2.74, warned that it would not turn a profit this year and no
longer sees a pick up in demand for the second half. The company also said it
will eliminate one-fifth of its workforce and raise $2 billion through stock
sales. Elsewhere in telecom equipment action, Nokia (NOK)
was down 6.53% at 16.30, Alcatel (ALA)
was down 4.20% at 13.00, and Motorola (MOT)
closed down 1.63% at 15.65.

Former telecom standout Lucent Technologies
(
LU |
Quote |
Chart |
News |
PowerRating), up 4.66% at 4.49,
said it has narrowed its losses for the fiscal second quarter, though its
revenue fell 40% as it came in below estimates.

Chip maker Micron Technology
(
MU |
Quote |
Chart |
News |
PowerRating), up 4.74% at 30.90, bucked the
trend of the overall sector as it agreed to buy the memory chip operations of
South Korea’s Hynix Semiconductor in a proposed $3.4 billion stock and cash
deal. The deal gives Micron the number one worldwide spot in the industry, as
Samsung Electronics shifts to second place.

Software giant Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), down 2.81% at 55.59, was in the
news again as its CEO Bill Gates told a federal judge that the states looking to
prosecute the company on monopoly issues are threatening business and hurting
consumers.

Drug maker Johnson
& Johnson (JNJ),
down 1.78% at 63.34, was the subject of a Barron’s
article which cited the company faces competition for its anemia drug Procit and
has the prospects for its artery clearing stent already factored into its stock
price.

Container and packaging company Sealed Air
Corp (SEE),
down 3.85% at 44.66, was cited in Barron’s
as facing risk from an asbestos lawsuit filed against the company last month.

Engine maker Cummins Inc. (CUM),
down 4.45% at 44.14, had its credit rating cut by Moody’s Investors Service to
"Ba1" from "Baa3."
The company’s short-term debt was reduced to "Not-Prime" from "P3."

Conglomerate 3M Company
(
MMM |
Quote |
Chart |
News |
PowerRating), up 0.09 at 125.01, beat its first
quarter earnings as it streamlined its business model. The company said its
business will improve this year along with the economy.

Tomorrow’s Hot Spots

BUY THE FEAR, SELL THE GREED

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