What Are These Three Sectors Telling You?

January 22, 2003
Daniel Beighley

The markets ended the day down,
as the bulls lost a mid-day battle to turn the indexes around. Technology issues
were well bid for most of session, though weren’t strong enough to lead.
Earnings season extended its misery, with key companies including Dow component
Kodak missing expectations. Volume came in around average and has signaled
distribution on the exchanges. Confirming the trend down were the
semiconductors, broker/dealers and retail.

In economic news, the
treasury budget came in at $4.37 billion vs. expectations of $4.08 billion.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was +155 at 114 175.

The U.S. Dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) wasÂ +0.05 at 100.53.

Volume was average,
with the NYSE coming in at 1,525,483,000
and the Nasdaq at 1,481,867,000.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.78, and down
volume over up volume by a 2.08 ratio. Nasdaq declining issues over advancing
issues came in at 1.51, and down volume beat up volume by a 1.50 ratio.

The

VIX was +1.48 at 32.01. The

TRIN was -1.40 at 1.17.

Leading the Dow lower were:

Stocks in the news:

Railroad company Union Pacific Corp.
(
UNP |
Quote |
Chart |
News |
PowerRating),
-4.01% at 57.11, sold off despite reporting that fourth-quarter earnings rose
37%. The company is cautious going forward due to economic uncertainties and
high energy prices.

Medical equipment and supplies company Boston
Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating), +2.13% at 45.00, announced that it expects sales to
rise 17% compared to last year, with earnings $0.02 higher than last year.

Software maker JDA Software
(
JDAS |
Quote |
Chart |
News |
PowerRating), +31.88% at
11.83, beat its earnings expectations for the quarter and raised sales targets
for the next quarter.

Conglomerate Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating),
-3.56% at 16.50, said their profit fell 47% for the first fiscal quarter due to
weakness across most of its businesses. The company said it expects fiscal
earnings for the year to be at the low end of expectations.

Drug maker Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating),
+0.68% at 30.71, announced that their fourth-quarter earnings were up 46% from a
year ago, with revenues up 14%.

Defense contractor General
Dynamics
(
GD |
Quote |
Chart |
News |
PowerRating), -12.02% at 64.85, missed its fourth-quarter earnings by
$0.21 with profits of $1.23 per share.

In the chip biz, Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating), -2.51% at 8.53, beat its fourth-quarter earnings expectations by
$0.03 with profits of $0.13 per share.

Photo giant Eastman Kodak
(
EK |
Quote |
Chart |
News |
PowerRating), -11.73% at 33.18, missed its fourth-quarter earnings expectations by
$0.02 with profits of $0.65 per share.

Oil services company
Schlumberger
(
SLB |
Quote |
Chart |
News |
PowerRating), -1.78% at 38.06, missed its fourth-quarter earnings
expectations by $0.05 with profits of $0.25 per share.

danielb@tradingmarkets.com

What Are These Three Sectors Telling You?

BUY THE FEAR, SELL THE GREED

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