What’s Concerning Investors

March 25, 2002
Daniel Beighley

The major averages spent the
day drifting lower, with technology issues experiencing the biggest losses. Gold
and silver was the only sector with decent gains.

Fear of earnings season
warnings circled the market today as another better than expected economic
report was released. The National Association of Realtors reported that sales
of existing homes fell 2.8% to an annual rate of 5.88 million homes.
Economists polled by Thompson Global Markets were looking for a rate of 5.5
million homes.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 2.28, and down-volume
over up-volume by a 4.32 ratio. Nasdaq declining issues over advancing issues
came in at 1.66, and down-volume beat up-volume by a 5.00 ratio. The
VIX
was up 0.93 at 20.55. The TRIN
was upÂ 2.05 to 2.94.

Below average volume saw the
Dow fall below its 20-day MA, the S&P 500 moved below its 20- and 200-day
MAs, and the Nasdaq fell below its 20-day MA. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
down 2.82%, closed on its support line as it traces a short-term descending
triangle. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), down 2.49%, fell below
its 20-day MA.

Tobacco company Philip Morris
(
MO |
Quote |
Chart |
News |
PowerRating), down 2.86% at 51.96, fell after
a jury ordered the company to pay almost $150.2 million for damages caused to a
woman who died of lung cancer after smoking low-tar cigarettes. The company
intends to appeal the verdict.

Mortgage banking company Countrywide
Credit Industries (CCR)
closed up 1.54% at
43.95. Barron’s cited the company as a good acquisition target for
Citigroup Inc (C),
down 2.38% at 48.65, Wells Fargo & Co (WFC),
down 1.02% at 49.04, or U.S. Bancorp (USB),
up 0.13% at 22.63, among several other European banks.

Conglomerate General Electric (GE),
down 2.19% at 37.04, was another subject of positive comments from Barron’s,
who claimed the company may be undervalued as it will benefit from economic
recovery and debt issues may have been overreacted to.

Communications services company WorldCom
(
WCOM |
Quote |
Chart |
News |
PowerRating), down 6.59% at
6.52, fell after the release of a New York Post article that claimed
employees believe the company will cut 6% to 10% of its workforce.

Internet infrastructure giant Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating),
down 2.35% at 16.18, was the subject of positive comments from Lehman Brothers,
who said orders from U.S. businesses to buy technology have picked up in March.

Beverage giant Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating), up 0.97%
at 51.75, rose after receiving an upgrade from CS First Boston to Buy from Hold,
claiming that the company’s restructuring will give it upside potential for 2002
and 2003.

What’s Concerning Investors

BUY THE FEAR, SELL THE GREED

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