Two Pieces Of The Sentiment Puzzle

March 23, 2003
Daniel Beighley

The
major indexes are under selling pressure midday, with price action
gapping lower off the open and holding downtrends for heavy losses.
Disappointing American military revelations from conflict in Iraq over the
weekend have set the tone. A loss for the day will have snapped an eight-day
winning streak for the market, as we now trade through what many believe to be
an extremely news-sensitive environment. Tomorrow, market players will get a
fresh dose of data in consumer confidence and existing home sales which stand as
potential sentiment shifters.

The only strength today is in
gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), +1.21%.

The 10-year U.S. Note
is +270 at 113 160.

The dollar is -0.89 at
101.56.

Gold is +3.10 at 329.90.

Crude Oil +1.24 at
28.15.

Volume is at 635,946,000
on the NYSE, and at 704,850,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 3.77, and down
volume over up volume by a 18.23 ratio. Nasdaq declining issues over advancing
issues are at 3.77, and down volume is over up volume by a 10.73 ratio.

Weakest on the Dow are:

Stocks in the news:

Hotel company Starwood
Hotels
(
HOT |
Quote |
Chart |
News |
PowerRating), -10.97% at 23.86, lowered its profit forecast for the rest
of the year due to “significant deterioration” brought on by conflict in Iraq.

Drug retailer giant
Walgreen’s
(
WAG |
Quote |
Chart |
News |
PowerRating), -5.75% at 29.99, announced that fiscal second-quarter
earnings came in at an expected 14% gain, though revenue slightly disappointed
with 13% growth.

Discount retail giant
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), -3.88% at 52.55, said that it expects earnings to come
in as expected, and sales have not been hindered by action in Iraq.

Oil & gas company Chevron
Texaco
(
CVX |
Quote |
Chart |
News |
PowerRating), -1.60% at 64.94, has evacuated and closed down its
operations in Nigeria due to ongoing fighting in the country that has taken many
lives.

Oil and gas company BP
(
BP |
Quote |
Chart |
News |
PowerRating),
-1.30% at 39.51, has been downgraded by CSFB to “neutral” from “outperform.”

Fabricated product maker
Timkin
(
TKR |
Quote |
Chart |
News |
PowerRating), -1.82% at 16.15, has had coverage initiated on it by
Timken at “overweight.”

Communications equipment maker
LM Ericsson
(
ERICY |
Quote |
Chart |
News |
PowerRating), -6.63% at 6.90, has been upgraded by Piper
Jaffray to “outperform” from “market perform.”

Communications services company
Verizon Communications
(
VZ |
Quote |
Chart |
News |
PowerRating), -5.28% at 35.55, was the focus of
positive comments in Barron’s over the weekend.

Aerospace and defense company
Alliant Tech
(
ATK |
Quote |
Chart |
News |
PowerRating), +1.23% at 49.50, was the focus of positive
comments in a New York Times article that cited the company as well
positioned to benefit from military activity.

Software company Symantec
(
SYMC |
Quote |
Chart |
News |
PowerRating), -5.31% at 40.30, has been downgraded by Piper Jaffray to “underperform”
from “market perform.”

Tobacco company Altria Group
(
MO |
Quote |
Chart |
News |
PowerRating), -4.99% at 33.29, has been ordered by an Illinois state judge to pay
$10.1 billion for deceptive advertising practices.

danielb@tradingmarkets.com

Two Pieces Of The Sentiment Puzzle

BUY THE FEAR, SELL THE GREED

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