What They’re Anticipating Next
The major averages traced out
mixed patterns today, characterized by sharply lower opens and afternoon rally
attempts that ended with the Dow closing slightly positive, and the S&P 500
and Nasdaq lower. Gold and silver, oil, and energy stocks held the day’s biggest
gains, with networking stocks leading down a mostly tech sell-off.
The
Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up 0.19%Â to
10,632.35.
The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating) closed down
0.22%
to 1,165.58.
The Nasdaq [$COMPQ |$COMPQ] closed down
1.67%
to 1,897.12.
With no economic news released
today, traders were given several warnings from the telecom sector to digest.
Tomorrow retail sales will be the anticipated report of the day as analysts look
for a 1.2% rise.
Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.03, and down-volume
over up-volume by a 1.18 ratio. Nasdaq declining issues over advancing issues
came in at 1.39, and down-volume beat up-volume by a 5.06 ratio. The
VIX
was down 1.06 to 21.31. The TRIN
was up 0.49 to 1.13.
Average volume for the day had
the Dow and the S&P 500 close at the top of their ranges within current
consolidation ranges, and the Nasdaq gap down and close below its 50- and
200-day MAs. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), down 2.73%, had its
second down day in a row after reaching levels not seen since last summer. The Broker/Dealer
Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), down 0.69%, closed within the top of its range inside
of its current consolidation range.
Top
sectors of the day were the Gold and Silver
Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), up 2.33% at 64.01,
and the Oil Service Sector
Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), up 1.99% at
100.74.
Losing
sectors of the day were the Networking Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating), down 5.87% at 261.94,
and the GSTI Multimedia Networking Index
(
$GIP.X |
Quote |
Chart |
News |
PowerRating), down 4.66% to
107.43.
The world’s largest mobile phone maker,
Nokia (NOK),
down 6.04% to 22.08, fell after it said it has lowered its expectations for the
quarter, citing weak market conditions.
Food processing company Performance Food Group
Company
(
PFGC |
Quote |
Chart |
News |
PowerRating), down 17.10% to 29.14, this stock was on TM’s Implosion
List and fell after the company said it had identified errors in its
accounting methods that would reduce the company’s earnings by at least $4
million. Â
Communications company WorldCom Inc. (WCOM),
down 12.10% to 7.92, was
the biggest loser in the Nasdaq 100 pre-market as concerns over accounting
issues surround the company, highlighted by
an investigation by the Securities and Exchange Commission. Qwest (Q),
down 5.50% at 8.94, is also being investigated.
Elsewhere in the communications industry, Lucent Technologies
(
LU |
Quote |
Chart |
News |
PowerRating),
down 10.86% to 5.58, fell after announcing its fiscal second quarter earnings
will be lower than expected as service providers are spending less. The company
also said that it is in line with current quarter expectations.
Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), down 2.80% to 62.54, weighed down the Dow today
after it was downgraded by Goldman Sachs, claiming earnings for its fiscal year
2003 will be lower than current analysts’ expectations.
Home appliance king Maytag
(
MYG |
Quote |
Chart |
News |
PowerRating), up 11.31% to 45.27, rose after
it announced its first quarter earnings will “significantly exceed”
current analysts’ expectations due to strong sales in the first two months of
the quarter.
Financial services company American Express
(
AXP |
Quote |
Chart |
News |
PowerRating), down 1.32% to
41.00, received an upgrade from Thomas Weisel to Buy from Market Perform with
the belief that a stronger economy will have a positive affect on credit card
spending.