What A Close At Current Levels Would Mean…

  • December 6, 2002
  • Daniel Beighley

The
major averages are slightly higher mid day, as disappointing
employment data coupled with the resignation of Paul O’Neil as Treasury
Secretary had prices sharply lower at the open. Intraday action  has the indexes
setting up an ascending triangle, which may be the precursor for an afternoon
rally. A close at current levels will mark bearish engulfing bars on the weekly
charts for the indexes.

Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is -0.06% at 8,618.07 The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) is
 +0.50% at 911.10. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is +0.45% at 1,417.16.

Current leaders are 
computer hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating), +2.00%, gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating),
+1.98%, airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), +1.97%.

Driving the action down are
Internet
(
$INX.X |
Quote |
Chart |
News |
PowerRating), -3.27%, networking
(
$GIP.X |
Quote |
Chart |
News |
PowerRating), -1.87%,
insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), -1.86%.

In economic news, the
unemployment rate came in at 6.0% vs. an expected 5.8%, nonfarm payrolls
were down 40,000 vs. expectations of a 35,000, average workweek came in
at an expected 34.2, and hourly earnings increased an expected 0.3%. 

The 10-year U.S. Note
is +020 at 113 085.

The Dollar is -0.66 at
105.53.

Volume is at 621,961,000
on the NYSE, and 880,410,000 on the Nasdaq.

Market breadth is mostly
positive, with NYSE advancing issues over declining issues by a ratio of
1.16, and up volume over down volume by a 1.13 ratio. Nasdaq declining issues
over advancing issues are at 1.08, and up volume over down volume is at a 1.62
ratio.

Leading the Dow are:

Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating), +3.83% at 18.96, JP
Morgan Chase
(
JPM |
Quote |
Chart |
News |
PowerRating), +3.17% at 24.36, Phillip Morris
(
MO |
Quote |
Chart |
News |
PowerRating),
+1.67 at 40 .02, Allied Capital
(
ALD |
Quote |
Chart |
News |
PowerRating), +1.43% at 22.67, Boeing
(
BA |
Quote |
Chart |
News |
PowerRating), +1.36% at 22.64, and SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), +1.33% at
26.60.

Stocks in
the news:

Chip giant Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
-0.95% at 18.78, said it expects its fourth-quarter earnings guidance to be at
the high end of expectations..

Computer hardware maker
International Business Machines
(
IBM |
Quote |
Chart |
News |
PowerRating), -1.20% at 82.06, announce that it
will acquire Rational Software
(
RATL |
Quote |
Chart |
News |
PowerRating), +25.68 at 10.28, in a cash
deal worth $2.1 billion. 

Oil services company Cooper
Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), +2.26% at 51.18, was upgraded by Deutsche Bank to “buy”
from “hold”.

Investment services company
Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating), -0.20% at 74.30, had its earnings estimates cut by
Morgan Stanley for the full year of 2002 to $3.97 from $4.11. Estimates for the
full year of 2003 have been reduced to $4.43 from $4.63.

Insurance company Oxford
Health
(
OHP |
Quote |
Chart |
News |
PowerRating), +1.62% at 36.99, raised its earnings guidance to between
$4.00-$4.10 per share vs. previous estimates of $3.97.

On its initial public offering,
The Chicago Mercantile Exchange
(
CME |
Quote |
Chart |
News |
PowerRating), +15.71% at 40.50, opened at
$39.00.