What The Market Thinks Of The Retail Data

April 10, 2003
Daniel Beighley

The major
averages are wavering around the unchanged
level midday, as key updates from retail companies are factored in. The retail
sector is slightly positive, as Sears leads the action with better-than-expected
same-store sales. Weighing the sector down is JC Penney which has guided lower
for the first quarter. Yahoo! is riding high and giving Internet stocks a boost
after posting better-than-expected earnings, though biotechs are getting whacked
after Genentech’s earnings disappointed.

In economic news, initial
claims came in at 405K vs. expectations of 425K, the trade balance
showed a loss of $40.3 billion vs. expectations a loss of $41.2 billion.

The 10-year U.S. Note
is -010 at 114 165.

The dollar is -0.37 at
100.16.

Gold is -0.10 at 325.50.

Crude OilÂ -0.48 at
28.35.

Volume is at 593,901,000
on the NYSE, and at 645,082,000 on the Nasdaq.

Market breadth is mixed,
with NYSE advancing issues over declining issues by a ratio of 1.12, and down
volume over up volume by a 1.29 ratio. Nasdaq declining issues over advancing
issues are at 1.09, and up volume is over down volume by a 1.42 ratio.

Biggest Dow gainers are:

Stocks in the news:

Chip maker Applied Micro
Circuits Corp.
(
AMCC |
Quote |
Chart |
News |
PowerRating), +2.01% at 3.407, said it will eliminate 626
jobs, or 31% of its work force.

Investment services company
T. Rowe Price
(
TROW |
Quote |
Chart |
News |
PowerRating), -2.87% at 27.05, has guided lower for the
first-quarter, and now expects to earn $0.29 per share vs. a consensus of $0.34
per share.

Retailers are active today with
Â JC Penney
(
JCP |
Quote |
Chart |
News |
PowerRating), -4.45% at 18.05, has guided lower for the
first-quarter, and now expects to earn $0.18-0.23 per share vs. a consensus of
$0.32. And Talbots
(
TLB |
Quote |
Chart |
News |
PowerRating), +7.82% at 28.00, has guided lower for the
first-quarter, and now expects to earn $0.48-0.51 per share vs. a consensus of
$0.54.

Sears
(
S |
Quote |
Chart |
News |
PowerRating), +3.45% at
26.10, announced that monthly same store sales were down 3.1% which was better
than expected due to a strong home improvement business.

Federated Department Stores
(
FD |
Quote |
Chart |
News |
PowerRating), +0.89% at 28.39, said that same store sales were down 6.5%, though
believes it will meet its first-quarter earnings targets.

Computer services company
GTECH
(
GTK |
Quote |
Chart |
News |
PowerRating), -4.83% at 34.49, has beat its fourth-quarter earnings
expectations by $0.10 with profits of $0.72 per share.

Beverage company
Constellation Brands
(
STZ |
Quote |
Chart |
News |
PowerRating), +5.44% at 24.43, has beat its fourth-quarter
earnings by $0.03 with profits of $0.44 per share.

Online company Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating),
+3.58% at 23.69, has beat its first-quarter earnings expectations by
$0.02 with profits of $0.08 per share.

Software company Infosys
(
INFY |
Quote |
Chart |
News |
PowerRating), -28.25% at 42.57, has guided lower for 2004, and now expects to see
earnings per share at $1.70-1.73 vs. a consensus of $1.83. The company also said
it expects to meet first-quarter earnings, though partially blames a weak
economy on longer term targets.

Transportation company
Expiditors International
(
EXPD |
Quote |
Chart |
News |
PowerRating), -3.18% at 34.14, has been downgraded
by JP Morgan to “neutral” from “overweight”.

Bookseller Barnes and Noble
(
BKS |
Quote |
Chart |
News |
PowerRating), -0.65% at 18.39, has guided lower for the first-quarter, and expects
a loss between $0.07-0.11 vs. a consensus of a loss of $0.03.

Healthcare company HCA
Healthcare
(
HCA |
Quote |
Chart |
News |
PowerRating), -4.49% at 35.97, has been downgraded by Bank of
America to “neutral” from “buy”.

danielb@tradingmarkets.com

What The Market Thinks Of The Retail Data

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