What Is Holding The Dow Back?

June 27, 2003
Vincent Mao

Stocks
are mixed this midday.Â Both the Dow and S&P are flat while the Nasdaq
is once again displaying outperformance. After yesterday’s turnaround, stocks
appear to be coming out of their recent pullback. However the Dow and S&P are
indecisive, fluctuating between green and red for much of the session. Both Blue
Chip indices are having a tough time getting back above their 20 day-moving
averages. Mixed economic news is not helping either as consumer sentiment
slipped while personal income rose. Bonds are continuing to sell off today.
Meanwhile both the dollar and gold are stronger.

In economic news, the
Michigan Consumer Sentiment Index for June came in at a reading of 89.7
compared to estimates of 87.2. However, this was the still lower than May’s read
of 92.1. Personal Income in May rose 0.3% as expected.Â

The 10-year U.S. Note
isÂ -095 at 116 280.

The dollar is -0.09 at
95.49.

Gold is + 0.60 at
344.80.

Crude Oil +0.39 at
29.44.

Volume is at 646,000,000
on the NYSE, and at 860,000,000 on the Nasdaq.

Market breadth is mixed,
with NYSE advancing issues over declining issues by a ratio of 1.38, and down
volume over up volume by a 1.12 ratio. Nasdaq advancing issues over declining
issues at 1.23, and up volume over down volume is at a 2.48 ratio.

Top Dow stocks are:

Stocks in the news:

Roslyn Bancorp
(
RSLN |
Quote |
Chart |
News |
PowerRating)
is higher by 1.7% after the company agreed to a merger with New York Community
Bancorp. The stock swap deal is valued at approximately $1.6 and will lead to
the creation of the biggest S&L in New York.Â Â

Elan
(
ELN |
Quote |
Chart |
News |
PowerRating) is lower
by 3% after Standard & Poor’s lowered the drug maker’s credit rating from B- to
CCC after Elan’s delay in filing its annual report. S&P commented that the delay
could put the company in default.

Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating) is
lower by 2.7% after Merrill Lynch downgraded the stock from “buy” to “neutral”.
Merrill cited valuation concerns and added that they have concerns over sales of
its Zyprexa drug. In addition, Merrill reduced Lilly’s 2004 estimates from $2.98
to $2.92.Â Â

Huntington Bancshares
(
HBAN |
Quote |
Chart |
News |
PowerRating)
is off by 2.3% on heavy volume. The shares are under pressure today after the
company announced that the SEC is launching an investigation into its accounting
practices.Â

Nike
(
NKE |
Quote |
Chart |
News |
PowerRating) is
trading lower by 6.5% on heavy volume after the company reported
worse-than-expected fourth-quarter results. The footwear and apparel maker
reported results of 92 cents a share up from 77 cents a share for the same
quarter a year ago. Nike’s results were a penny shy of consensus estimates.
Merrill Lynch also downgraded the stock from “neutral” to “buy”.Â Â

Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating) is
higher by 2.90% after the FDA granted the company “Fast Track” status for its
colon cancer drug, Avastin. Â

Please feel free to contact me
with your suggestions or questions.

Vincent Mao

What Is Holding The Dow Back?

BUY THE FEAR, SELL THE GREED

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