Tomorrow’s Potential Continuation Candidates

April 23, 2002
Daniel Beighley

The
markets were confined to narrow ranges for most of the session, until
a late-day sell off sent the major averages to losses on the day. Oil service,
gold and silver, energy, and telecom stocks made slight gains on the day, with
Internet, semiconductors, networking, and computer hardware issues suffering the
heaviest losses.

U.S. Treasury Bonds were
up 6 at 100’30.

Market breadth was
negative, with NYSE declining issues over advancing issues by a ratio of 1.01,
and down volume over up volume by a 1.19 ratio. Nasdaq declining issues over
advancing issues came in at 1.17, and down volume beat up volume by a 3.55
ratio. Â The
VIX
was up 0.52 at 22.24. The TRIN
was down 0.76 at 1.17.

Average volume
on the NYSE and above-average volume on the Nasdaq sent the three major averages
below their 50-day MA’s, as the S&P 500 makes a short-term double-bottom,
and the Nasdaq makes a triple-bottom. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
down 3.10%,was halted at support to make a near-term double-bottom. TheÂ Broker/Dealer
Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating),down 1.16%, made its second close in a row below its
50-day MA.

Oil and gas company Exxon Mobil Corp. (XOM),
down 1.19% at 41.35,Â caused futures trading to reverse this morning after
it reported disappointing first-quarter profits due to weak demand in the
refining business and lower oil and gas prices. The company missed its profit
target by 8 cents.

Aerospace and defense company Lockheed Martin
(
LMT |
Quote |
Chart |
News |
PowerRating), up 5.20% at
62.20, announced first-quarter earnings that beat analysts’ expectations as it
intends to earn $25.6 billion for the year, which is in line with estimates of
between $25 billion and $25.8 billion.

Internet service provider Earthlink Inc. (ELNK),
down 16.57% at 7.95, announced that it expects to lose between 14 and 24 cents a
share for 2002, compared to previous forecasts for a loss of 5 to 25 cents a
share.

Chemical giant Dupont (DD),
down 3.25% at 44.84, said that first-quarter profits fell from weak industrial
demand. Sales of early-season agricultural products and cost savings from job
cuts were cited as strong points in the balance sheet.

Drug maker Schering-Plough (SGP),
up 0.30% at 29.79,Â won a U.S. advisory panel’s support for sales of its
over-the-counter allergy drug Claritin. If the drug receives approval from the
Food and Drug Administration, it will be the first non-prescription drug
approved for treating hives.

Beverage behemoth PepsiCo (PEP),
down 1.19% at 52.20, reportedÂ first-quarter profits of 38 cents a share,
with analysts looking for 37 to 38 cents a share. Sales from Mountain Dew, Code
Red, and Frito-Lay snacks turning in strong sales.

Paper and paper products company
Kimberly-Clark (KMB),
down 1.41% at 64.08,Â beat its first-quarter earnings estimate by 4 cents,
as revenues rose 0.2 percent to $3.33 billion.Â

Personal and household product company Gillette
(
G |
Quote |
Chart |
News |
PowerRating), up 4.21% at
36.32,, managed to increase its first-quarter net income 23 percent, as sales
rose 13 percent.Â

In the fiber optic industry, Corning
(
GLW |
Quote |
Chart |
News |
PowerRating), down 2.85% at 6.80,
reported a first-quarter lossÂ that came in line with expectations. The
company expects sales to come in between $900 million and $925 million, which is
lower than previously expected.

From TM’s proprietary Momentum
List, entertainment company Mandalay Resort Group
(
MBG |
Quote |
Chart |
News |
PowerRating), up 3.74%
at 36.30.

From TM’s proprietary Implosion
List, software maker Veritas
(
VRTS |
Quote |
Chart |
News |
PowerRating), down 5.65% at 28.52.

Tomorrow’s Potential Continuation Candidates

BUY THE FEAR, SELL THE GREED

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