What Today’s Overall Action Signifies

December 2, 2002
Daniel Beighley

After
gapping up nicely at the open, the major indexes ran into selling
pressure, that with the aid of a disappointing ISM number sent price action on a
march south for the session. Despite the selling pressure, most tech issues
managed to squeeze in gains for the day, including the semis index, which turned
down from its 200-EMA at its intraday high. Today’s overall reversal action
creates a negative bias for the near term.

In economic news, the ISM
Index came in at 49.2% vs. an expected 51.0, and construction spending
was up 0.3% vs. an expectation of no change.

The 10-year U.S. Note
was +035 at 112 130.

The Dollar was -0.05 at
106.45.

Volume was slightly
above average, with the NYSE coming in at 1,515,110,000, and the Nasdaq at
1,907,817,000.

Market breadth was slightly
positive, with NYSE advancing issues over declining issues by a ratio of
1.27, and up volume over down volume by a 1.24 ratio. Nasdaq advancing issues
over declining issues came in at 1.03, and up volume beat down volume by a 1.25
ratio.

The

VIX was -1.03 at 30.05. The

TRIN was -0.16 at 0.97.

Leading the Dow lower were:

Stocks in the news:

Chip maker Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
+0.71 at 21.03, was upgraded by Lehman Brothers to “overweight” from
“equal-weight”.

Retailer Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating),
+0.89% at 54.38, reported record single-day sales for Nov. 29, with revenue
coming in at $1.43 billion vs. $1.25 billion from a year ago.Â

Parent of United Airlines,
UAL Corp.
(
UAL |
Quote |
Chart |
News |
PowerRating), +33.87% at 3.28, rallied after its union agreed to vote
on a revised cost-cutting plan that aims to keep the air carrier out of
bankruptcy.Â

Office equipment company
Pitney Bowes
(
PBI |
Quote |
Chart |
News |
PowerRating), -1.24% at 34.86, was upgraded by UBS Warburg to
“buy” from “hold”.

Software company Internet
Security
(
ISSX |
Quote |
Chart |
News |
PowerRating), -2.75% at 24.34, was downgraded by Wachovia to “hold”
from “buy”.

Computer services company
Electronic Data Systems
(
EDS |
Quote |
Chart |
News |
PowerRating), -1.96% at 17.99, was downgraded by Pipper
Jaffray to “underperform” from “market perform”.

Regional bank Fifth Third
Bancorp
(
FITB |
Quote |
Chart |
News |
PowerRating), +2.89% at 57.62, was upgraded by Morgan Stanley to
“outperform” from “equal-weight”.

Biotech firm Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating),
+7.43% at 35.24, was upgraded by CSFB to “outperform” from “neutral” with a
price target of $40.

What Today’s Overall Action Signifies

BUY THE FEAR, SELL THE GREED

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