What’s Behind Today’s Lackluster Trading

November 11, 2002
Daniel Beighley

InÂ lackluster trading the major
indexes notched in losses for the day. Due the Veteran’s Day holiday, volume was
light, and Treasury futures weren’t traded as they kept potential asset-swapping
plays sidelined.

There were no sectors positive
at the end of the day.

There were no economic releases
today.

The 10-year U.S. Note
did not trade.

The Dollar was +0.07 at
104.75.

Volume was below average,
at 1,078,524,000 on the NYSE, and
1,260,524,000 on
the Nasdaq.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 2.52, and down
volume over up volume by a 6.81 ratio. Nasdaq declining issues over advancing
issues came in at 2.62, and down volume beat up volume by a 8.71 ratio.

The

VIX was +2.55 at 36.11. The

TRIN was +0.65 at 2.64.

Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating),
-10.97% at 14.85, led the Dow down after it was announced that the company’s No.
2 executive Michael Capellas was the leading candidate to take over the CEO post
at WorldCom.

Stocks in
the news:

Advertising company
Interpublic
(
IPG |
Quote |
Chart |
News |
PowerRating), -4.11 at 12.81, fell after the company said it is
finding further evidence of billing discrepancies at its McCann Erickson agency.
The discrepancies were likely to have inflated last month’s earnings by $120
million, and are the second time errors have been found.

Airlines were performed poorly
as a group, though UAL Corp.
(
UAL |
Quote |
Chart |
News |
PowerRating), +8.84% at 3.57, rose on news that
its flight attendants have tentatively agreed to wage concessions. Also,
Delta Airlines
(
DAL |
Quote |
Chart |
News |
PowerRating), -5.55% at 11.19, was up after an article in
Barron’s claimed the company had greater labor flexibility and stronger
fundamentals than its rivals, though eventually sold off.

Energy stocks were some of the
worst performers today as Williams Companies
(
WMB |
Quote |
Chart |
News |
PowerRating), -0.38% at 2.60,
received a subpoena for information relevant to its involvement in the
California energy market.

Software company Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating), -5.23% at 9.05, was downgraded by Deutsche Bank to “hold” from
“buy” based on valuation.

Conglomerate 3-M Company
(
MMM |
Quote |
Chart |
News |
PowerRating), -1.50% at 126.36, was the subject of a positive article by the New
York Times.

Chemical manufacturer
Monsato
(
MON |
Quote |
Chart |
News |
PowerRating), -4.76% at 16.00, was the subject of a 60 Minutes story
which discussed the large quantities of PCBs discovered around its Anniston, AL
plant.

Communications services company
jCom
(
JCOM |
Quote |
Chart |
News |
PowerRating), -15.47% at 22.66, was the subject of negative comments in
a Barron’s article which claimed the company is overvalued.

Metal mining company Alcan
Aluminum
(
AL |
Quote |
Chart |
News |
PowerRating), -3.04% at 28.31, has been downgraded by Prudential to
“hold” from “buy”.

Insurance company Chubb
(
CB |
Quote |
Chart |
News |
PowerRating), +0.97% at 55.01, was upgraded by Banc of America Securities to “strong
buy” from “market perform”.

From TM’s
Implosion List, retailer Michael’s Stores
(
MIK |
Quote |
Chart |
News |
PowerRating), -8.06% at 29.42.

What’s Behind Today’s Lackluster Trading

BUY THE FEAR, SELL THE GREED

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