Watch For This Level Of Resistance

July 7, 2003
Vincent Mao

Stocks
started off the week on a very positive note.Â The major indices
displayed their own brand ofÂ fireworks today. At one point, the Dow was up over
190 points, but ended the day off its highs. The Nasdaq broke above the 1,700
level for the first time since last May. Today’s rally was set off by the
continuing shift out of bonds and a rumor of a $10 billion dividend payout from
Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating). In addition, optimism about second-quarter profits are
boosting shares. Nearly a quarter of companies within the S&P 500 index will
report results over the next two weeks. Tech stocks lead the charge today with
almost a 3.5% gain by the Nasdaq. Tech stocks are benefiting from a positive
Goldman Sachs survey on IT spending. However the Nasdaq is trading in an area of
resistance between 1715 to 1725. Warnings from BMC Software
(
BMC |
Quote |
Chart |
News |
PowerRating) and
Schering Plough
(
SGP |
Quote |
Chart |
News |
PowerRating) and last Thursday’s dismal report on the job market
are failing to have a negative effect on stocks. Bonds are again lower and are
near a two-month low. Meanwhile the dollar is near a two-month high.

No economic news to report
today. Tomorrow we will have Wholesale Inventories for May.

The 10-year U.S. Note
is -120 at 116 105.

The dollar is +1.00 at
95.90.

Gold is – 2.90 at
348.30.

Crude Oil -0.29 at
30.13.

Volume is at
1,384,000,000 on the NYSE, and at 1,826,000,000 on the Nasdaq.

Market breadth is positive
on the NYSE and on the Nasdaq, with NYSE advancing issues over declining
issues by a ratio of 2.20, and up volume over down volume by a 2.34 ratio.
Nasdaq advancing issues over declining issues at 2.55, and up volume over down
volume is at 2.02 ratio.

Top Dow stocks are:

Stocks in the news:

BMC Software
(
BMC |
Quote |
Chart |
News |
PowerRating)
is trading lower by 7.8% on heavy volume after the company warned that its
first-quarter results would come in below previous forecasts. The software maker
now sees results coming in between 1 to 4 cents a share on revenues of $305 to
$312 million. Analysts had expected the company to earn 8 cents a share on
revenues of $331 million.

Cirrus Logic
(
CRUS |
Quote |
Chart |
News |
PowerRating)
is lower by 4.3% on heavy volume. The company announced that it expects
first-quarter sales to be at low end of its previous $40 million to $45 million
forecast. Analysts had expected revenues of $42.4 million. Cirrus also announced
that its CFO Steven Overly had resigned for personal reasons.

Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) is
higher by 3.5% after a French newspaper Les Echos reported that the
software giant would pay roughly $10 billion in dividends. Microsoft has not
commented about the rumor.

Schering Plough
(
SGP |
Quote |
Chart |
News |
PowerRating)
is lower by 3.8% after the company warned that second -uarter results would come
in below expectations. The drug maker now sees earnings of 12 cents a share
compared to analysts’ estimates of 18 cents a share. Schering cited increasing
competition for its popular Clarinex and Nasonex products.

Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) is
trading higher by 2.5% after J.P. Morgan lifted the company’s second-quarter and
fiscal 2003 forecast. J.P. Morgan now sees Yahoo’s second-quarter results up by
a penny to 9 cents a share and full-year results to 37 cents from 33 cents a
share. Yahoo will report on Wednesday, July 9.

vincentm@tradingmarkets.com

Watch For This Level Of Resistance

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources