What’s Leading The Market…
Accounting concerns are pushing the markets lower
once again. New disclosures by Tyco International
(
TYC |
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PowerRating) have raised
concern that companies continue to misstate their earnings. Last week Tyco was
beginning to climb up from its lows, but is lower today by more than $4.00 a
share after the conglomerate said it spent $8 billion in three years on more
than 700 purchases it didn’t make public.
Also getting hammered in today’s trading is
Enterasys Networks
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ETS |
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PowerRating). The computer network switch maker said it’s
being investigated by the Securities and Exchange Commission and is delaying an
earnings report. ETS has drooped like a rock and is trading at all-time lows.
On the Nasdaq
(
$COMP |
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the action has turned negative. The Nasdaq Composite Index has fallen below
its support level in the range of 1879/1882 with slightly lower volume. On
a break lower, the Nasdaq does not have a support level until 1851, which also
marks the low last Wednesday.Â
The Amex Biotech Index
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$BTK.X |
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PowerRating) has
fallen below its support at 500. Shares of Cephalon
(
CEPH |
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PowerRating) are down
over 8.00. In a note to clients, UBS Warburg said newly released data show that
sales of the biotech firm’s flagship Provigil drug, which has been approved for
the treatment of the sleep disorder narcolepsy, were down 4% for the week ended
Jan.25. Shares of Amgen
(
AMGN |
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PowerRating) are giving back some of the gains
from Friday’s trading session. Amgen’s stock had risen sharply Friday after the
No.1 biotech firm said it won approval for the successor to its Neupogen drug,
which is used to reduce the incidence of infection in patients undergoing cancer
chemotherapy.
Brooks Automation
(
BRKS |
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PowerRating) is trading in a
triangle at its recent high. BRKS is up 0.38 to 47.77 and carries a 3-month
relative strength rank of 89 from TradingMarkets.com.
Talbots
(
TLB |
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PowerRating) is trading in a triangle.
TLB has a TradingMarkets.com
3-month RS ranking of 77. It is down .89 at 35.29.
Alliance Gaming
(
ALLY |
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PowerRating) is forming a
pullback from high. ALLY is now trading down 0.07 to 33.45 and is carrying a
3-month
relative strength rank of 98 from TradingMarkets.com.
Int’l Business Machines
(
IBM |
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PowerRating) is faltering
out of a potential false rally from lows. IBM has a TradingMarkets.com
3-month RS ranking of 12. It is down .80 at 107.20.
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