What’s Fueling Naz Momentum?
Anticipation of a recovery sent technology shares
on the march towards nice gains for the day. The Dow Jones and S&P 500
barely managed to close in positive territory, while many key sectors were left
lagging in the red.
The
Dow Jones Utilities
(
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PowerRating) made a new 52-week low. The Dow Jones
Industrial Average
(
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PowerRating) closed up 0.05% at 9,345.13. The S&P
500
(
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PowerRating) closed up 0.03% at 1,084.34. The Nasdaq [$.COMPQ.X |$.COMPQ.X]
closed up 1.57%, at 1,731.21.
In
the headlines, more earnings disappointments were accompanied by a new wave of
lay off announcements and the faint rumor of Bin Laden’s capture. Powerhouse
companies such as Phelps Dodge
(
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(
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(
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and Sears
(
S |
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PowerRating) released workers by the thousands. The Federal Reserve’s Beige
Book report contained no surprises as the results showed a weaker economy in the
aftermath of the Sept. 11 attacks. The report appeared to have no effect on
market action.
NYSE
advancing issues were 1,357, with up-volume at 596,023,744; declining issues
were 1,735, with down-volume at 729,757,824. Nasdaq advancing issues were 1,930,
with up-volume at 1,320,977,024; declining issues were 1,649 with down- volume
at 516,136,064. The VIX
was down 0.32Â to 32.87. The TRIN
was down 0.22Â to 0.97. Overall volume on the day was average and the
price-action mixed. The Dow Jones and S&P 500 have shied away from their
50-day moving averages, though the Nasdaq was able to close above this mark for
the first time since July. Despite technology’s positive day, bulls would have
liked to see more strength across the board to solidify the gains.
Top
sectors of the day were the Semiconductor Sector Index
(
$SOX.X |
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PowerRating) up 3.99%
at 460.77 and the Morgan Stanley Internet Index
(
$MOX.X |
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PowerRating) up 3.11%Â
at 11.62.
Losing
sectors of the day were the Dow Jones Utilities Index
(
$UTIL.X |
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Chart |
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PowerRating), down
4.75%Â at 292.25, and the Airline Index
(
$XAL.X |
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PowerRating), down 2.54% at
69.14.
AMR
(
AMR |
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PowerRating) was down 1.25% at 19.70. The parent company of American Airlines
reported its worst quarter in history, with an earnings loss of $2.98 compared
to a profit of $1.91 a year ago.
DuPont
(
DD |
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PowerRating) was down 1.85% at 41.32 . The largest chemical company in the U.S.
reported a loss of almost 75% for the third quarter with income of $142 million,
compared to $563 million a year ago.
Eastman
Kodak
(
EK |
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PowerRating) closed down 10.16% at 30.70. The world’s largest maker of photography
products posted earnings of 33 cents a share compared to $1.36 a year ago.
The company also laid off 4,000 employees.
Viacom
(
VIA |
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PowerRating) closed
down 1.97% at 36.41. The parent company of CBS television network, MTV,
Nikelodeon, and Paramount Pictures reported a third quarter loss of 11cents a
share, compared to a profit of 2 cents a share a year ago.Â
Nextel
Communications
(
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PowerRating) was up 16.22% at 8.60. The
company posted a loss of 46 cents per share, compared to analysts’ expectations
of 48 cents per share.Â
Â
Amazon.com
(
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PowerRating)
down 20.31% at 7.61. The online vender shares got whacked as investors responded
to a narrower loss in third-quarter profits at 46 cents a share, but a decline
in sales.
Enron
(
ENE |
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News |
PowerRating) down 17.33% at 16.36. The stock of this energy broker fell as it
was downgraded to a “sell” by Prudential over concerns about
management’s integrity.