Traders Look To Tests Of True Sentiment

October 30, 2002
Daniel Beighley

The
major indexes put in positive performances today, as price action
headed higher in early trading, though weakened into the close. Speculation
remains that month-end mark ups were responsible for much of the buying, as well
as pressure from the “I can’t miss the bottom” crowd. Tomorrow and Friday will
bring many market-moving economic releases, which will be tests of true sentiment. A
sure sign of strength for the markets will be the continued ability to shake off
bad news. It’s always the reactions to news that matters most to traders.

There were no economic releases
today. Tomorrow will have many key reports out, including GDP and
Chicago PMI.

The 10-year U.S. Note
was -040 at 114 085.

The Dollar was +0.03 at
107.32.

Volume was average, at
1,385,400,000 on the NYSE, and
1,661,051,000 on
the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.80, and up
volume over down volume by a 2.10 ratio. Nasdaq advancing issues over declining
issues came in at 1.65, and up volume beat down volume by a 5.13 ratio.

The

VIX was -0.72 at 36.08. The

TRIN was -0.85 at 0.85.

Leading the Dow were:

Stocks in
the news:

Discount retailer Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), 04.72% at 53.80, was downgraded by Goldman Sachs to “market perform”
from “recommended list” based on valuation.

Personal product maker
Gillette
(
G |
Quote |
Chart |
News |
PowerRating), +5.66% at 30.23, was upgraded by Morgan Stanley to
“overweight” from “underweight” due to long-term growth prospects.

Personal household maker
Clorox
(
CLX |
Quote |
Chart |
News |
PowerRating), +3.18% at 41.46, beat analysts’ expectations for their
first quarter, and upped its 2003 profit target.

Software company Activision
(
ATVI |
Quote |
Chart |
News |
PowerRating), +11.58% at 20.32, beat its second-quarter earnings expectations by
$0.03 with profits of $0.13 per share. The company has also raised guidance for
the full year.

Investment services company
Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating), – 0.01% at 72.36, was downgraded by Wachovia
securities to “hold” from “buy” due to valuation and and earnings outlook.

For profit school company
Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating), +16.14% at 39.72, beat its first-quarter
profit targets by $0.08 with profits of $0.30 a share. The company has also
raised its earnings guidance.

Business services company
Charles River
(
CRL |
Quote |
Chart |
News |
PowerRating), -7.39% at 36.80, beat its third-quarter earnings
expectations by $0.03 with profits of $0.39 per share.

Consumer product maker
Unilever
(
UN |
Quote |
Chart |
News |
PowerRating), +4.98% at 62.81, raised its earnings targets for the year
to the high teens from previous estimates in the mid-teens.

Â Communications services
company Qwest Communications
(
Q |
Quote |
Chart |
News |
PowerRating), +6.60% at 3.39, announced a
third-quarter loss that was smaller than expected, and also said its full-year
results should come in lower than expected.

Computer hardware maker
International Business Machines‘
(
IBM |
Quote |
Chart |
News |
PowerRating), +2.51% at 78.67, CEO Sam
Palmisano said he was positive about the economy and the company’s outlook.

Traders Look To Tests Of True Sentiment

BUY THE FEAR, SELL THE GREED

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