What Sellers Revealed On Thursday

October 24, 2002
Daniel Beighley

Sellers
hit the markets today, as a broad-based decline on decent volume
displayed weakness not seen for a couple of weeks. The day’s price action traded
mostly sideways for the first part off the session, with a steep sell off in the
afternoon. Concerns over conflict with Iraq surfaced, with reporters being
kicked out of the country.

In economic news, initial
jobless claims fell 25,000 to 389,000, less than the 406,000 analysts were
expecting.

The 10-year U.S. Note
was +054 at 112 235.

The Dollar was -0.12 at
108.11.

Volume was above average, at
1,653,070,000 on the NYSE, and
1,915,074,000 on
the Nasdaq.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.25, and down
volume over up volume by a 1.47 ratio. Nasdaq declining issues over advancing
issues came in at 1.15, and down volume beat up volume by a 1.35 ratio.

The
VIX
was +0.52 at 39.90. The TRIN
was +0.29 at 1.18.

Leading the Dow down were:

Stocks in the news:

Media giant America Online
(
AOL |
Quote |
Chart |
News |
PowerRating), +7.53% at 14.55, matched earnings estimates with profits of $0.19 per
share. The company also said it will restate its results for the quarters ended
September 30, 2000 through June, 30 2002. This will reduce revenue by $190
million, and EBITA by $97 million.

Drug maker Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating),
-2.64% at 48.68, beat its earnings forecast by $0.02 with profits of $0.34 per
share. The company also said it expects to meet targets for the fourth quarter,
though UBS Warburg had negative comments over excess inventory.

Also in the drug sector, Schering-Plough
(
SGP |
Quote |
Chart |
News |
PowerRating), +2.30% at 19.12, beat third-quarter expectations and reiterated its
outlook for the full year 2002. And Bristol-Myers Squibb said it plans to
restate its earnings for 2000 and 2001, with reductions in earnings expected,
and for 2002, where upward adjustments are expected.Â Â Â Â Â

Online travel agent Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating), +11.43% at 64.20, beat its third-quarter earnings expectations by
$0.09 with profits of $0.49 per share. The company also increased earnings
guidance.

Communications equipment maker Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), -3.09% at 35.39, was downgraded by CSFB to “underperform”
from “neutral”.

Communications services company
SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating) has missed its earnings expectations by $0.03
with profits of $0.51 per share.

Wireless provider AT&T
Wireless
(
AWE |
Quote |
Chart |
News |
PowerRating), +18.34% at 6.45, posted a profit well ahead of analysts’
expectations, and was upgraded by J.P. Morgan and Kaufman Brothers.

Photography giant Eastman
Kodak
(
EK |
Quote |
Chart |
News |
PowerRating), +0.91% at 34.13, reported third-quarter results in line with
expectations, and also said it will eliminate 1,300 to 1,700 jobs. The company
also said it expects fourth-quarter results to beat current expectations.

Biotech company Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating), +5.85% at 24.60, posted third-quarter profits that beat Wall Street
estimates.

Insurance giant American
International Group
(
AIG |
Quote |
Chart |
News |
PowerRating), +1.76% at 4.16, missed its third-quarter
earnings target.

What Sellers Revealed On Thursday

BUY THE FEAR, SELL THE GREED

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