Two Out Of Three

January 25, 2002
Daniel Beighley

Today
the price action of the Dow and the S&P 500
traded in tandem with a jerky, upward trend that turned into an
afternoon sell off,Â though both were able to close positive. The Nasdaq
opened poorly, made a midday rally, then sold off for a loss into the close. Oil
service and semiconductor stocks posted the better gains of the day, as
software, Internet, and retail issues traded lower.

In economic news The National
Association of Realtors reported that sales of existing homes fell to a
rate of 5.19 million for December, a 0.8% decline from November, and in line
with analysts’ expectations. The association said that it feels the housing
sector is strong enough to weather an economic slow down.

Overall
NYSE volume was 1,324,541,000.
NYSE advancing issues were 1,594,
with up volume at 723,998,000;
declining issues were 1,493,
with down volume at 572,199,000.
Overall Nasdaq volume was 1,642,237,000.
Nasdaq advancing issues were
1,658,
with up volume at 697,008,000;
declining issues were 1,891 with
down volume at 929,354,000.
The VIX
was down 0.82 to 21.95. The TRIN
was up 0.04 to 0.84.

Slightly above-average volume
on the Dow and the S&P 500 led the indexes further from their recent lows,
with the next upside target their 50-day moving averages. Volume was below
average on the Nasdaq, as it just barely closed above its 200-day moving
average, and also has the 50-day moving average as its next upside target.

Computer hardware maker Compaq
Computer
(
CPQ |
Quote |
Chart |
News |
PowerRating), down 0.75% to 11.96, said that it expects to earn 32
cents a share, surpassing Wall Street estimates of 25 cents a share. The company
also announced that it expects an economic recovery to occur in the second half
of the year.

Number 3 mobile phone maker Ericsson
(
ERICY |
Quote |
Chart |
News |
PowerRating), down 6.61% to 4.38,Â reported an adjusted fourth quarter
pre-tax loss of $486 million, claiming losses in Latin America continue to hurt
the company.

Software and programming
company PeopleSoft
(
PSFT |
Quote |
Chart |
News |
PowerRating), down 7.68% to 35.48, fell after it
announced that its fourth quarter earnings would be greater than analysts’
consensus estimates, but lowered its guidance for the first quarter.

The world’s second-largest
consumer electronics group Sony
(
SNE |
Quote |
Chart |
News |
PowerRating), up 0.94% to 46.29, fell over
14% in the fourth quarter, though revenue was boosted by higher sales and a
weaker yen.

Computer hardware maker Gateway
(
GTW |
Quote |
Chart |
News |
PowerRating), down 11.95% to 5.60, issued an earnings warning from a first quarter
charge of $100 million in cost-cutting efforts, saying it would close 19 of its
296 stores, cutting 2,260 jobs.

Money manager T. Rowe Price
Group Inc.
(
TROW |
Quote |
Chart |
News |
PowerRating), up 0.44% to 36.35, reported an earnings fell 19%
from a loss in managed assets. Fourth-quarter earnings came in at 35 cents a
share, compared to 43 cents a year ago, and in line with the 31 to 36
projections of analysts polled by Thompson Financial.

Newspaper publisher Knight
Ridder
(
KRI |
Quote |
Chart |
News |
PowerRating), down 2.05% to 62.50, reported a fourth quarter profit of,
recoveringÂ last year’s loss, though sales were down from a weak
advertising environment.

Biotechnology company ImClone
Systems
(
IMCL |
Quote |
Chart |
News |
PowerRating), down 15.73 to 16.50, continues to fall after regulators
refused to review its cancer drug, and is now receiving inquiries from the
Securities and Exchange Commission.

Two Out Of Three

BUY THE FEAR, SELL THE GREED

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