Where The Money’s Headed

April 24, 2002
Daniel Beighley

The
major indexes put in a reversal to the downside in the first hour of
trading before trending up to the intraday highs around 12:30 pm ET, then down
to new lows for losses into the close. Internet stocks were the big gainers,
with airline, telecoms, healthcare, and gold and silver putting in modest
advances. Semiconductors, broker/dealers, and computer hardware stocks made the
biggest losses.

U.S. Treasury Bonds were
up 26 at 101’24.

Despite positive news from the
Internet sector, price action reflected disappointing economic data. Durable
goods orders dropped 0.6% in March, for its first decline in four months.
Economists surveyed by Thompson Global Markets were looking for a 0.5% increase.
New home sales for March fell 3.1% to 878,000, where economists were
looking for 884,000. And lastly, the Fed’s Beige Book showed improvement
across the sectors, with inflation in check.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.10,
and down volume over up volume by a 1.47
ratio. Nasdaq declining issues over advancing issues came in at 1.22,
and down volume beat up volume by a 1.52
ratio. The
VIX
was up 0.54 at 22.67. The TRIN
was up 0.16 at 1.33.

Above average volume kept the
three major averages below their 50-day MA’s and closing at the bottom of their
ranges. TheÂ Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), down 3.35%, also
moved below its 200-day MA.

Online retailer Amazon.com Inc. (AMZN),
up 19.41% at 16.79, reported a first quarter loss of 1 cent a share, excluding
certain costs. Analysts were looking for a loss of 9 cents a share.

Drug maker GlaxoSmithKline
(
GSK |
Quote |
Chart |
News |
PowerRating), up
2.59% at 48.32, said it earned $1.5 billion for the first-quarter for a 49%
rise. The drug maker cited sales of its asthma treatment Advair and cost–cutting
measures for the increase. Also in the drug–making
business, Dow component Johnson and Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), rose
1.26 to 63.61.

Communications services company AT&T Corp.
(T),
down 0.72% at 13.75, announced a wider–than–expected
first–quarter
loss and lowered its guidance for the second quarter. The company cited tough
competition and a weak economy as hurting sales.

Biotechnology company Biogen
(
BGEN |
Quote |
Chart |
News |
PowerRating), up 3.27% at 42.90, said that
it beat first-quarter profits targets though lowered its guidance for the second
quarter and the rest of the year.

Communications equipment maker Qualcomm (QCOM),
up 3.22% at 33.29, posted profits in line with analysts‘
expectations . The company also reported a lower than expected second-quarter
profit and revenues, though was in line with expectations on a pro forma basis.

Security software maker Check Point Software
(CHKP),
up 0.27% at 18.25, reported lower–than–expected
profits, though has affirmed its outlook for the remainder of the year.

Electric utilities company Calpine Corp. (CPN)
down 11.47% at 11.80, said that it will sell as much as 69 million shares to pay
off debt and for general corporate purposes.

Toy maker Jakks Pacific (JAKK),
down 3.81% at 18.40, announced that it has filed with the Securities and
Exchange Commission for the sale of 3.5 million of its shares.Â

From TM’s proprietary Momentum
List, healthcare facilities company Triad Hospitals
(
TRI |
Quote |
Chart |
News |
PowerRating), gained
7.65% at 40.80.

From TM’s proprietary Implosion
List, software company Veritas Software
(
VRTS |
Quote |
Chart |
News |
PowerRating), lost 5.82% at
26.85.

Where The Money’s Headed

BUY THE FEAR, SELL THE GREED

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