What May Be In Store For Next Week

December 6, 2002
Daniel Beighley

The major averages put in
reversal days after a sharply lower open on the heels of disappointing
unemployment data and the resignation of Treasury Secretary Paul O’Neil was
shaken off. Price action began its reversal right from the open and crept higher
for most of the session, with some selling pressure coming in for the last hour.
Lower volume on the session indicates a less powerful reversal, and all three
major averages have marked ominous bearish engulfing bars on their weekly
charts.

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

The 10-year U.S. Note
was +125 at 113^190.

The dollar was -0.81 at
105.38.

Volume was below
average, with the NYSE coming in at 1,214,745,000 and the Nasdaq at
1,526,741,000.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.57, and up
volume over down volume by a 1.49 ratio. Nasdaq advancing issues over declining
issues came in at 1.15, and up volume beat down volume by a 1.88 ratio.

The

VIX was -1.60 at 32.68. The

TRIN was -0.69 at 1.05.

Leading the Dow higher:

Stocks in the news:

Chip giant Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), -1.31% at 18.71, said it expects its fourth-quarter earnings
guidance to be at the high end of expectations, though the stock is down in the
aftermarket.

Also in the chip sector,
National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating), -0.16% at 17.62, posted profits for its
fiscal second quarter vs. expectations of a loss.

Oil services company Cooper
Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), +2.19% at 51.15, was upgraded by DeutscheBank to “buy”
from “hold.”

Investment services company
Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating), +0.06% at 74.50, 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), +2.17% at 37.19, 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), +22.57% at 42.90, opened at
$39.00.

What May Be In Store For Next Week

BUY THE FEAR, SELL THE GREED

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