What May Change The Pace

March 5, 2003
Daniel Beighley

Stocks ended the day higher as
increased volatility created trading opportunities for both sides of the market.
Price action opened lower for the day and gave us big shifts higher and lower, before rallying into the close. Volume was once again absent, as the Dow and S&P
500 remain below their 20-day moving averages, and the Nasdaq right on this
mark. Pressing geopolitical issues were once again at hand as many speculate how
Friday’s UN resolution may change the pace for disarming Iraq.

healthcare
(
$HCX.X |
Quote |
Chart |
News |
PowerRating), +1.47%, and

airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), +1.28%.

In economic news, ISM Services came in at
53.9 vs. expectations of 53.0.

The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was +090 at 117 130.

The US dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was -0.87 at 98.29.

Volume was below
average, with the NYSE coming in at 1,290,209,000 and the Nasdaq at
1,348,464,000.

Market breadth was

mixed, with NYSE
advancing issues over declining issues by a ratio of 1.17, and up volume over
down volume by a 1.61 ratio. Nasdaq declining issues over advancing issues came in
at 1.10, and down volume beat up volume by a 1.44 ratio.

The

VIX was -2.35 at 34.23. The TRIN
was -2.96 at 0.72.

Biggest Dow advancers were:

Stocks in the news:

Discount retailer Costco
(
COST |
Quote |
Chart |
News |
PowerRating), -1.87% at 28.75, posted earnings a penny short of expectations with
profits of $0.42 per share. Revenues were reported up 7.8% from a year ago.

In the defense sector
Northrop Grumman
(
NOC |
Quote |
Chart |
News |
PowerRating), -4.02% at 83.75, lowered its earnings guidance
for the year due to higher interest expenses while it pays off debt.

Ice cream maker Dreyer’s
Grand Ice Cream
(
DRYR |
Quote |
Chart |
News |
PowerRating), -14.58% at 63.70, melted after US trade
regulators voted against Nestle’s move to buy the company for $2.8 billion.
Deutsche Bank downgraded the company to “sell” after the announcement.

Entertainment giant Walt
Disney
(
DIS |
Quote |
Chart |
News |
PowerRating), -0.68% at 15.94, sold off after Merrill Lynch cut its
estimates on the company due to negative consumer confidence, cold weather, and
terrorist threats.

Toy maker Toys “R” Us
(
TOY |
Quote |
Chart |
News |
PowerRating),
-0.12% at 7.90, beat its fourth-quarter earnings by $0.03 per share with profits
of $1.30 per share.

Software maker Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating), -3.95% at
11.17, is believed by Lehman Brothers to have had a tough month of sales in
February, and believes the company will disappoint on their revenue numbers. The
stock is leading a weak software sector today.

Shipping company United Parcel Service
(
UPS |
Quote |
Chart |
News |
PowerRating),
-1.37% at 56.05, had its 2003 estimates cut by Morgan Stanley to $2.26 per share
vs. previous estimates of $2.34 per share.

Biotech company Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating), -1.09%
at 30.58, missed its fourth-quarter earnings expectations by $0.01 with profits
of $0.34 per share.

Beverage company Pepsi Bottling
(
PBG |
Quote |
Chart |
News |
PowerRating),
-17.98% at 18.20, guided lower for the first-quarter, and now sees earnings per
share between $0.12-0.14 vs. previous expectations of $0.20.

Office supply maker Staples Inc.
(
SPLS |
Quote |
Chart |
News |
PowerRating),
+6.32% at 17.65, beat its fourth-quarter earnings expectations by $0.02 with
profits of $0.35 per share.

danielb@tradingmarkets.com

What May Change The Pace

BUY THE FEAR, SELL THE GREED

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