Two Pieces of the Puzzle

Today’s Market Flash is
written by Daniel Beighley

The major indexes remain
in a narrow trading range
on the heels of disappointing economic
data. The Commerce Department revised its earlier GDP contraction from 0.04% to
1.1%. This is the largest third quarter decline since the first quarter of 1991 when the
contraction was 2%. Also, a report from the

Purchasing Management
Association of Chicago index said purchasing activity fell to a level of 41.1, down from
46.2 in October. This report is widely considered to be a good forecast for the
National Association of Purchasing Management’s numbers which come out Monday
morning.

Shares of Enron
(
ENE |
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PowerRating)
fell another 25%
today as it has become a concern whether or not the company will have any
functional capacity. The company has now filed for bankruptcy as issues for
reform are debated. Dynegy
(
DYN |
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PowerRating)
down 4.15%, has announced that it
exercised an option to acquire $1.5 billion in preferred stock in Enron’s

Northern Natural Gas unit.

Leading sectors today are the Airline Index

(
$XAL.X |
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, up 3.63% at 87, and the GTSI Hardware Index
(
$GHA.X |
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, up
2.01% at 258.29.

The biggest losing sectors today are the
Semiconductor Index

(
$SOX.X |
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PowerRating)
, down 0.95% at 519.30, and the
Street.com Internet Index

(
$DOT.X |
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PowerRating)
, down 0.79% at 422.80.

From our point gainers list:

Beazer Homes
(
BZH |
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News |
PowerRating)
is up 7.08% on 100%
volume. This home building company was upgraded by Solomon Smith Barney to
Outperform from Neutral.

Dianon Systems Inc.
(
DIAN |
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PowerRating)
is up 8.97% on
almost two times average volume. There is no news on this healthcare company.

InVision Technologies Inc.
(
INVN |
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PowerRating)
is up
18.89% on
over two times average volume. The security systems company announced that the
Federal Aviation Administration has bought several detection systems used for
identifying concealed weapons.

From our point losers list:

Novellus
Systems


(
NVLS |
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PowerRating)
is down
8.53% on over 100% average volume. The semiconductor company announced that it
would not turn a profit for the first and second quarters of next year.

Manhattan Associates Inc.
(
MANH |
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Chart |
News |
PowerRating)
is down
8.59% on
over 100% average volume. The company was added to the S&P 500 index yesterday.

KLA-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating)
is down 5.61%. The
stock is suffering with the rest of the semiconductor index from a weak
forecast by Novellus Systems.