What Could Turn Us Around This Afternoon?

January 15, 2003
Daniel Beighley

The major averages have been in
sell mode for the first half of the day, as positive news from Intel failed to
inspire buyers. All three major indexes have formed bearish engulfing patterns
on their daily charts, though they still remain in a trading range. The
bellwether Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) has pierced its 50-day moving
average to the downside, though could see buying pressure in the zone. Beige
book data coming out this afternoon poses as a potential market mover.

In economic news, business
inventories for November came in at 0.2% vs. an expected 0.1%, core PPI
was down 0.3% vs. an expected 0.1%, and PPI was unchanged vs.
expectations of a 0.3% reading. At 2:00 p.m. ET today beige book data
will be released.Â

The 10-year U.S. Note
is +115 at 113 070.

The Dollar is +0.02 at
101.55.

Gold is -1.80 at 350.60.

Crude Oil is +0.68 at
33.05.

Volume is at 670,005,000
on the NYSE, and at 924,714,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 1.93, and down
volume over up volume by a 3.35 ratio. Nasdaq declining issues over advancing
issues are at 2.04, and down volume is over up volume by a 4.74 ratio.

Top Dow gainers are:

Stocks in the news:

Chip king Intel Corp.
(
INTC |
Quote |
Chart |
News |
PowerRating), -1.52% at 17.52, beat its fourth-quarter earnings expectations by
$0.02 with profits of $0.16 per share.

Also in the semiconductor
sector, Linear Tech
(
LLTC |
Quote |
Chart |
News |
PowerRating), -5.61% at 29.09, beat its second-quarter
earnings expectations by $0.01 with profits of $0.18 per share.

In the biotech sector,
Biosite Inc.
(
BSTE |
Quote |
Chart |
News |
PowerRating), +2.92% at 38.75, had its fourth-quarter and 2003
earnings estimates raised by Bank of America. The firm now sees fourth-quarter
earnings at $0.34 vs. previous guidance of $0.31. Also in the sector,
Transkaryotic
(
TKTX |
Quote |
Chart |
News |
PowerRating), -23.91% at 6.65, sold off after the Food and Drug
Administration said the company has not been able to prove its drug will help
Fabry disease.

Chemical company and Dow
component Du Pont
(
DD |
Quote |
Chart |
News |
PowerRating), -2.66% at 42.83, lowered its fourth-quarter
earnings guidance to $0.31-0.33 per share vs. a consensus of $0.33.

Money center bank Bank of
America
(
BAC |
Quote |
Chart |
News |
PowerRating), -1.90% at 71.10, beat its fourth-quarter earnings
expectations by $0.03 with profits of $1.69 per share.

Regional Bank Fifth Third Bancorp
(
FITB |
Quote |
Chart |
News |
PowerRating),
-3.90% at 59.40, announced a rise in profits for the fourth quarter, though sold
off as investors remain concerned over an investigation into a charge taken in
the third quarter.

Financial services company Fannie Mae
(
FNM |
Quote |
Chart |
News |
PowerRating),
-1.92% at 68.71, beat its fourth-quarter earnings expectations by $0.02 with
profits of $1.66 per share.

Investment services company Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating),
-1.95% at 73.24, announced it has made a $1.3 billion investment into Japanese
bank Sumitomo Mitsui Financial Group.

In the airline sector, Continental Airlines
(
CAL |
Quote |
Chart |
News |
PowerRating), -0.45% at 8.86, rallied after reporting smaller than expected losses
for its fourth quarter.

Business services company Automatic Data Processing
(
ADP |
Quote |
Chart |
News |
PowerRating), -8.28% at 36.21, met its second-quarter earnings expectations, though
guided lower for fiscal 2003.

danielb@tradingmarkets.com

What Could Turn Us Around This Afternoon?

BUY THE FEAR, SELL THE GREED

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