What’s Buoying Investors’ Confidence?
More than 60% of the S&P 500 companies that have reported results have beaten
analysts’ estimates, according to Thomson First Call. The rally that has lifted
the two indexes 14% from five-year lows last week has buoyed investor
confidence. On the last day of the trading week and options expiration, profit
takers were stepping in after the markets’
little run.
Just past the mid-way point, the indices are trading in
the green zone. The Standard & Poor’s 500 Index
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Dow Jones Industrial Average
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back-to-back weekly advance since August after Microsoft
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raised forecasts for sales and profits.
Today, indexes were little changed as companies
such as drugmaker Merck & Co.
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maker Siebel Systems
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The Nasdaq Composite
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opened right at the 1270 level, which is also the 50% retracement level from the
Aug. high to Oct. low. This is also the 50-day simple moving average. The 1267
level is short-term support with 1250 secondary support. Overhead
resistance is at 1300/1306 level with 1315 the secondary resistance point.
On the S&P 500 Index, 878, the 50-day moving
average is serving as initial support with the 50% retracement level (868) drawn
from the Aug high to the Oct. low is secondary support. Overhead resistance is
at 891/900 with secondary resistance at 908.
Midway through today’s session, the following
sector indices are experiencing significant strength: Steel, Wireless Com,
Entertainment, Retail, Lodging,
The following sector indices are experiencing
significant weakness: Semiconductors, DJ Home Const, DJ Chemicals, Software.
Cheesecake Factory
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at the open, and has reversed to trade positive. Volume is strong. Last night
CAKE reported Q3 earnings of $0.26 per share (excluding items), in line with the
Multex consensus. Including items, CAKE earned $0.24. Revs rose 18% to $161.98
mln (consensus $168.51 mln).
Universal Health Services
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Today UHS is rallying up with increasing volume. UHS has a
TradingMarkets.com RS3 rating of 89. And also an up trending
ADX of 40.
UHS is trading at 55.10 up .80.
ITT Education
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momentum after breaking out from the 20.00 resistance level. Volume is strong
and ESI has a
TradingMarkets.com RS3 rating of 97. ESI is trading at 23.08 up 1.03.
Nasdaq Market Breadth
Adv: 1536 UpVol: 484136809
Dec: 1494 DnVol: 484847300
Net: +42 Net: -710491
NYSE Market Breadth
Adv: 1541 UpVol: 44644637
Dec: 1594 DnVol: 40539872
Net: -53 Net: +4104765