What Today’s Strong Close Suggests For Tomorrow’s Open

October 21, 2002
Daniel Beighley

The major indexes opened lower
this morning, though turned around and posted decent gains on the session.
Positive news from key Dow stocks helped move things higher, with a strong close
suggesting further upside into tomorrow’s open. Taking away from the bull’s fire
was a lack of volume.

In economic news, leading
indicators came in at an expected -0.2%.

The 10-year U.S. Note
was -175 at 112 045.

The Dollar was -0.33 at
108.54.

Volume was average, at
1,406,072,000
on the NYSE, and 1,560,055,000
on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.56, and up
volume over down volume by a 4.65 ratio. Nasdaq advancing issues over declining
issues came in at 1.46, and up volume beat down volume by a 2.90 ratio.

The

VIX was -0.91 at 38.91. The

TRIN was -0.48 at 0.33.

Leading the Dow:

Stocks in the news:

Conglomerate 3M Corp.
(
MMM |
Quote |
Chart |
News |
PowerRating),
+2.94% at 129.00, announced earnings in line with expectations, and also said
that there were “no clear signs of improving global economic conditions.”

Beverage giant Coca-cola
Company
(
KO |
Quote |
Chart |
News |
PowerRating), +3.47% at 48.00, received an upgrade from Thomas Weisel
Partners to “buy” from “attractive” based on valuation.

Fast food giant McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating), +4.69% at 18.30, received positive comments from Merrill Lynch who
said the company will match earnings estimates when it announces tomorrow. On a
down note, credit company Fitch lowered its rating on the company on concerns
over a recent slowdown in sales in Europe.

Drug maker Merck
(
MRK |
Quote |
Chart |
News |
PowerRating),
+0.23% at 51.15, has been downgraded by UBS Warburg to “hold” from “buy” based
on valuation.

Regional bank MBNA Corp.
(
KRB |
Quote |
Chart |
News |
PowerRating), + 1.50% at 20.20, has been upgraded by Thomas Weisel to “buy” from
“attractive”.

Biotech company Myriad
Genetics
(
MYGN |
Quote |
Chart |
News |
PowerRating), +0.39% at 17.94, received negative comments in
a Barron’s article over the weekend which claimed a perception among
epidemiologists that a “breast cancer gene” is less of a risk factor than
originally thought. It is feared by some that this will hinder the company’s
growth.

Software company Siebel
Systems
(
SEBL |
Quote |
Chart |
News |
PowerRating), +4.19% at 6.46, announced a a multiyear technology and
marketing agreement with Microsoft Corp.
(
MSFT |
Quote |
Chart |
News |
PowerRating), – 1.20% at 52.51.
Microsoft’s CEO Steve Balmer said over the weekend that its latest earnings
announcement is an anomaly, and doesn’t expect business to be as good in the
future.

Computer printer maker
Lexmark International
(
LXK |
Quote |
Chart |
News |
PowerRating), +2.13% a 56.94, has beat its
third-quarter earnings estimates by $0.01 with profits of $0.79 per share.

Financial services company
Household International
(
HI |
Quote |
Chart |
News |
PowerRating), – 2.73% at 28.40, has been downgraded by
Thomas Weisel to “market perform” from “buy” due to concerns over losses in real
estate loans.

Chip company Texas
Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating), +0.11% at 17.12, received a downgrade from CS First
Boston, who lowered its 2002 earnings and revenue estimates.

What Today’s Strong Close Suggests For Tomorrow’s Open

BUY THE FEAR, SELL THE GREED

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