What’s Boosting The Indices Today
For the first time in three days, all
three major indices are on the rise as higher earnings at Maxim Integrated
Products
(
MXIM |
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PowerRating) and Alcatel
(
ALA |
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PowerRating), Europe’s largest
phone-equipment maker, helped lift computer-related and telecommunications
shares. According to Bloomberg.com, stocks got a boost from speculation the
Federal Reserve may lower interest rates next week after a survey yesterday
showed a plunge in consumer confidence.
Economists predict two reports on Friday will show unemployment rose and
manufacturing contracted in October.
The S&P 500
(
$SPX.X |
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PowerRating) gained 8.41, or 1%, to 890.09 as of 12:38 p.m.
ET. Computer-related and telephone shares accounted for more than 60% of the move. The
Dow Â
(
$INDU |
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PowerRating) added 53.27, or 0.6%, to
8422.78, led by IBM
(
IBM |
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PowerRating). The Nasdaq
(
$COMPQ |
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Chart |
News |
PowerRating) rose 26.20, or 2.1%, to 1327.74. The
A/D lines are bullish by a 3 to 2 margin while up volume outpaces down volume on
the Nasdaq exchange by a 7:1 ratio.
Some of the strongest sectors on the day are: Oil
(
$XOI.X |
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Chart |
News |
PowerRating), Oil
Service
(
$OSX.X |
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Chart |
News |
PowerRating), Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), Networking,
Wireless, Telecom, Storage, Biotech
(
$BTK.X |
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Chart |
News |
PowerRating),
Utility
(
$UTY.X |
Quote |
Chart |
News |
PowerRating), Video Game and School.
The weaker sectors are: Retail
(
$RLX.X |
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Chart |
News |
PowerRating),
Paper
(
$FPP.X |
Quote |
Chart |
News |
PowerRating), Gaming, Restaurant, Lodging.
Applied
Materials [AMAT|AMAT] is rallying higher today.
Overhead resistance is at 16.00. Right now AMAT is trading just above the 78.6%
retracement level. AMAT has a
TradingMarkets.com RS3 rating of 82 and is trading at 15.30 up .95.
Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) climbed 39 cents
to $10.99. Lucent Technologies Inc. surged 15 cents to $1.16. Nortel Networks
Corp. rose 9 cents to $1.18. Verizon Communications added $1.40 to $38.
Exxon Mobil
(
XOM |
Quote |
Chart |
News |
PowerRating) advanced after Transocean Inc., the world’s biggest
offshore oil and natural-gas driller, reported third-quarter earnings that more
than doubled because of a tax gain and lower costs. Exxon, the largest publicly
traded oil company, added 68 cents to $33.91. Transocean rose $2.10 to $22.05.
Clorox
(
CLX |
Quote |
Chart |
News |
PowerRating) jumped $3.73 to $43.91. The largest US household
bleach maker reported first-quarter profit that climbed 84%, topping
analysts’ forecasts, on lower expenses and higher sales of new products.
Gillette
(
G |
Quote |
Chart |
News |
PowerRating) gained $1.22 to $30. Morgan Stanley analyst Catherine
Lewis said profit margins are improving at maker of razors and Duracell
batteries and the company is generating “large” free cash flow. Lewis raised
her rating to “overweight” from “underweight.”
Nasdaq Market Breadth
Adv: 1804 UpVol: 7398272
Dec: 1173 DnVol: 1064303
Net: +631 Net: +6333969
NYSE Breadth Breadth
Adv: 1884 UpVol: 54381500
Dec: 1247 DnVol: 25142163
Net: +637 Net: +29239337