Two Things To Watch This Week

February 3, 2003
Daniel Beighley

The markets were relatively
quiet this Monday, with the major averages pulling together for slightly
positive closes as price action held tight ranges. Economic numbers presented
welcome news for the bulls, with new evidence that the economy is expanding (see
economic news below). Things to watch this week: Wednesday Secretary of State Collin
Powell is scheduled to release evidence of Iraq’s weapons of mass destruction
and on Friday we get a major dose of employment data.

In economic news,
construction spending was up 1.2% vs. expectations of 0.5%. and the ISM
Index came in at 53.9 vs. expectations ofÂ 54.00

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was -055 at 113 310.

The U.S. Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) wasÂ -0.02 at 100.12.

Volume was on the
light side, with the NYSE coming in at 1,198,317,000
and the Nasdaq at 1,249,195,000.

Market breadth was mostly
positive, with NYSE advancing issues over declining issues by a ratio of
1.14, and up volume over down volume by a 1.24 ratio. Nasdaq declining issues
over advancing issues came in at 1.21, and up volume beat down volume by a 1.14
ratio.

The

VIX was -1.80 at 33.98. The

TRIN was +0.03 at 0.92.

Leading the Dow higher were:

Stocks in the news:

Insurance company Humana
(
HUM |
Quote |
Chart |
News |
PowerRating), -5.63%
at 9.38, said that it earned $0.34 for the fourth quarter as it beat
expectations by $0.01. The company said it expects full-year 2003 to be in line
with estimates. Earnings were down from a year ago as the company struggled with
consolidation efforts.

Restaurant company Wendy’s
(
WEN |
Quote |
Chart |
News |
PowerRating),
+0.40% at 27.26, announced that it expects to earn less in 2003 than had
previously predicted. The company sees higher business costs in the future.

Retailer JC Penny
(
JCP |
Quote |
Chart |
News |
PowerRating), +0.77% at
19.54, announced that it expects sales for its stores open at least a year to be
flat for February, vs. 13% growth for the month a year ago.

Toy maker Mattel
(
MAT |
Quote |
Chart |
News |
PowerRating), +5.15% at
21.03, beat its fourth-quarter earnings expectations by $0.03 with profits of
$0.42 0 per share.

Electric utilities company Entergy
(
ETR |
Quote |
Chart |
News |
PowerRating), +3.14% at 45.85, was upgraded by UBS Warburg to “buy” from
“neutral.”Â

Savings bank Greenpoint Financial
(
GPT |
Quote |
Chart |
News |
PowerRating), +1.09% at 43.58, was upgraded by UBS Warburg to “buy” from “neutral.”

Also in the retail sector, Abercrombie and
Fitch
(
ANF |
Quote |
Chart |
News |
PowerRating), +1.58% at 28.28, was upgraded by Merrill Lynch to “buy”
from “neutral.”

Healthcare facilities company
Accredo Health
(
ACDO |
Quote |
Chart |
News |
PowerRating), -21.35% at 29.50, sold off after lowering its
2003 revenue guidance to $1.40-1.45 from previous guidance of $1.45-1.50.

Communications equipment maker
LM Ericsson Telephone
(
ERICY |
Quote |
Chart |
News |
PowerRating), -10.20% at 7.30, is down after
releasing disappointing earnings and guiding lower for 2003.

Drug maker Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating), +2.39% at 61.68, has been upgraded by Prudential to “buy” from
“hold.”

Photo giant and Dow component
Eastman Kodak
(
EK |
Quote |
Chart |
News |
PowerRating), +4.29% at 31.60, was given a favorable mention in
Barron’s from Legg Mason Value Trust’s Bill Miller.

danielb@tradingmarkets.com

Two Things To Watch This Week

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources