Watch For This Support Level On The Dow

July 10, 2003
Vincent Mao

Stocks are
sharply lower this midday.
The major indices are in a broad-based sell off despite Yahoo’s
(
YHOO |
Quote |
Chart |
News |
PowerRating)
in line second-quarter results. Yahoo topped estimates on both revenues and
earnings but the stock is selling off on valuation concerns. Shares of Yahoo
have doubled since the beginning of the year. Economic data showing a
still-struggling job market didn’t help either. Nearly every sector is in the
red with the only exception being gold. Retail issues are also heading lower
today despite higher monthly comparable same-store sales from Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating),
J.C. Penney
(
JCP |
Quote |
Chart |
News |
PowerRating), and Gap
(
GPS |
Quote |
Chart |
News |
PowerRating). The Dow is once again closing in on
the psychological 9,000 level. Bonds are again on the rise and looking for a
second straight day of gains.Â

The day’s leading sectors are
Gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), +0.94%

In economic news, Export
Prices in Jun (excluding agriculture) fell 0.1%. Import Prices in June
(excluding oil) rose 0.5%. Initial Jobless Claims for the week ended
7/05/2003 rose by 5,000 to 439,00 compared to expectations of 420,000. The less
volatile four week moving average rose by 1,000 to 426,750.Â

The 10-year U.S. Note
is +060 at 116 170.

The dollar is -0.04 at
95.85.

Gold is 1.20 at 345.10.

Crude Oil +0.56 at
31.44.

Volume is at 714,000,000
on the NYSE, and at 931,000,000 on the Nasdaq.

Market breadth is negative
on the NYSE and on the Nasdaq, with NYSE declining issues over advancing
issues by a ratio of 2.75, and down volume over up volume by a 6.32 ratio.
Nasdaq declining issues over advancing issues is at 2.62, and down volume over
up volume is at 4.06 ratio.

Top Dow stock(s) are:

Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating), +0.39% at 44.05.

Stocks in the news:

Pepsico
(
PEP |
Quote |
Chart |
News |
PowerRating) is
higher by 2.7% after reporting second-quarter results in line with estimates.
The company reported earnings of 58 cent a share compared to 48 cents a share
during the same period a year ago. Pepsico also backed its full year 2003
estimates of $2.16 to $2.19 a share.

Abbott Laboratories
(
ABT |
Quote |
Chart |
News |
PowerRating)
is lower by 1.2% after the company reported second-quarter results excluding
items in line with estimates. However the company lowered its third-quarter
forecast to 52 to 54 cents a share compared to estimates of 55 cents a share.
Moreover Abbott did back its full-year forecast of $2.20 to $2.25 a share.Â

Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating) is
fractionally higher after the company reported second-quarter results that
topped analysts’ estimates. The company earned 31 cents a share or 5 cents above
consensus estimates. For the same period last year, the company reported a loss
of 41 cents a share.Â

IGEN
(
IGEN |
Quote |
Chart |
News |
PowerRating) is
lower by 4.6% but well off its earlier lows. An appeals court overturned $400
million in punitive damages and $86.8 million in compensatory damages resulting
from an unfair competition suit with Roche.Â

Kohls
(
KSS |
Quote |
Chart |
News |
PowerRating) is
lower by1.8% on heavy volume after the company lowered its second-quarter
forecast. The retailer now expects earnings between 30 and 32 cents a share
compared to consensus estimates of 39 cents a share.Â

Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) is
lower by 7% on heavy volume despite reporting second-quarter results in line
with estimates. The company reported results of 8 cents a share compared to 3
cents a share during the same period a year ago. Quarterly revenues of $321
million also topped estimates of $314 million. However, the shares are down on
valuation concerns.Â Â

If you have any comments or questions, please
feel free to email me.

Vincent Mao

Watch For This Support Level On The Dow

BUY THE FEAR, SELL THE GREED

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