What Remains Dominant

November 13, 2002
Daniel Beighley

The
markets were caught in international turbulence today as news that
Iraq agreed to UN inspections sent the averages rocketing higher in the morning.
The mood didn’t last, as price action dropped off in the second half of the day,
though managed to rally into the close, bringing the Dow and Nasdaq to slightly
positive closes, and the S&P to a slight loss. Technology remains dominant in
this market, as the Dow and S&P trade below their 20-day moving averages, and
the Nasdaq above its.

There were no economic releases
today.

The 10-year U.S. Note
was +060 at 115085.

The Dollar was +0.45 at
105.27.

Volume was average on the
NYSE, at 1,409,773,000 and
above average on the Nasdaq 1,885,917,000
on the Nasdaq.

Market breadth was mostly
positive, with NYSE declining issues over advancing issues by a ratio of
1.08, and up volume over down volume by a 1.02 ratio. Nasdaq advancing issues
over declining issues came in at 1.01, and up volume beat down volume by a 2.70
ratio.

The

VIX was +0.89 at 36.28. The

TRIN was +0.08 at 0.83.

Stocks in
the news:

Money center bank Citigroup
(
C |
Quote |
Chart |
News |
PowerRating), -3.81% at 35.00, sold off after former analyst Jack Grubman said he
fabricated a story about receiving pressure from company CEO Sanford Weil.

Drug maker Schering Plough
(
SGP |
Quote |
Chart |
News |
PowerRating), -4.04% at 20.66, fell after it said that it has received two
grand-jury subpoenas in Massachusetts for the marketing and testing of three of
its drugs.

Discount retailer Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), +2.09% at 54.98, rose after it announced it beat earnings estimates
for the third quarter due to strong sales last month.

Retailer Sears
(
S |
Quote |
Chart |
News |
PowerRating),
-7.48% at 21.00, was downgraded by Goldman Sachs to “underperform” from
“in-line”.

Online travel agent Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating), -6.55% at 67.61, was reported by the Wall Street Journal to
face a potential hit by Bush’s airline reservation plans, which would give the
airlines more flexibility in ticket distribution.

Gaming company Multimedia
Games
(
MAGAM |
Quote |
Chart |
News |
PowerRating), -3.51% at 19.77, missed its fourth-quarter earnings
expectations by $0.02 with profits of $0.47 per share. The company also guided
lower for the full year of 2003.

Also in the retailing business,
Abercrombie and Fitch
(
ANF |
Quote |
Chart |
News |
PowerRating), +6.15% at 22.07, beat its third-quarter
earnings expectations by $0.01 with profits of $0.48 per share. The company has
also been upgraded by Wachovia to “strong buy” from “buy”. Nordstrom
(
JWN |
Quote |
Chart |
News |
PowerRating),
-13.20% at 19.12, issued a profit warningÂ for its third quarter with new
expectations of $0.13-$0.14 a share vs. previous estimates of $0.16-$0.20 per
share. Federated Department Stores
(
FD |
Quote |
Chart |
News |
PowerRating), +2.55% at 30.55, reported
higher earnings for the third quarter due to reductions in inventory and costs.
And Tiffany
(
TIF |
Quote |
Chart |
News |
PowerRating), +7.08% at 26.59, rose after beating third-quarter
earnings estimates with positive comments for the fourth-quarter.

Publishing company School
Specialty
(
SCHL |
Quote |
Chart |
News |
PowerRating), +1.58% at 47.45, downgraded by Salomon Smith Barney
to “outperform” from “strong buy” and by Jeffries to “sell” from “hold”.

From TM’s
Implosion List, conglomerate Pentair Inc. [PNRPNR], -5.04% at 29.34.

What Remains Dominant

BUY THE FEAR, SELL THE GREED

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