Where The Strength Is
After
a choppy open, the major averages headed south to the day’s mid point
where they are consolidating.
The only sector positive is the
Dow Jones Equity REIT Index.
Leading the losers list are:
networking, airlines, semiconductor, and Internet issues.
There are no economic releases
scheduled for today.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is down 1.24% at 8714.06. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
is down 1.60% at 919.87 at. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is down 1.54% at
1326.97.
U.S. Treasury Bonds are
up ’23 at 109 ’26.
Volume is on the light side
at 688,858,020
on the NYSE, with  684,553,351 on the Nasdaq.
Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 2.73, and down
volume over up volume by a 6.85 ratio. Nasdaq declining issues over advancing
issues is at 6.39, and down volume is beating up volume by a 2.36 ratio.
Communications equipment maker Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating),
down 17.07% at 1.02, warned that revenue will come in less than expected due to
a lack of technology spending. The company said it also intends to lay off 7,000
workers. Elsewhere in the sector, Corning
(
GLW |
Quote |
Chart |
News |
PowerRating), down11.79% at 2.20,
Lucent Tech.
(
LU |
Quote |
Chart |
News |
PowerRating), down 8.99% at 1.72, JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating),
down 6.20% at 2.72, and Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating), down 11.13% at 4.23.
Airline UAL Corp.
(
UAL |
Quote |
Chart |
News |
PowerRating), down 15.16% at 3.30,
fell on worries that the company will file for bankruptcy. Elsewhere in the
sector, Continental Air
(
CAL |
Quote |
Chart |
News |
PowerRating), down 5.98% at 10.06, American
Airlines
(
AMR |
Quote |
Chart |
News |
PowerRating), down 5.89% at 9.89, and Delta Airlines
(
DAL |
Quote |
Chart |
News |
PowerRating),
dwon 2.44% at 17.52.
Tobacco company Phillip Morris
(
MO |
Quote |
Chart |
News |
PowerRating), up 2.7% at
49.20, announced a dividend increase of 10.3% and a new chairman.
Bank Washington Mutual
(
WM |
Quote |
Chart |
News |
PowerRating), down 1.78% at 36.85,
announced that it will buy the National Bank of Australia
(
NAB |
Quote |
Chart |
News |
PowerRating) for
$1.3 billion in cash.
Computer hardware company Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating),
down 4.95% at 4.03, received bearish comments from Goldman Sachs ahead of its
earnings release Thursday. Goldman believes the company will hit the lower end
of earnings estimates.
School  Corinthian Colleges
(COCO),
up 5.55% at 33.80, beat its fourth-quarter earnings estimates by 4 cents with
profits of 27 cents a share. The company has also raised its earnings guidance.
Office supply company Office Depot
(
ODP |
Quote |
Chart |
News |
PowerRating), down
5.01% at 12.70, said that it is comfortable with current and full year earnings
estimates, though claimed back-to-school sales are sluggish.
Semiconductor company
Semtech Corp. (SMTC),
down 24.94% at 14.20, announced that one of its customers claims to have
suffered $42 million in damages due to faulty chips.
Elsewhere in the chip sector, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
down 1.04% at 17.00, and Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating), down 3.85% at
8.74, were hurt with negative comments from Prudential, which has lowered its
fourth-quarter outlook on the companies.
Personal financial services
company H&R Block (HRB),
down 1.65% at 50.05, beat its first-quarter pro forma earnings estimates by 11
cents, with profits of 1 cent.
Casino Mandalay Bay Group
(MBG),
up 3.44% at 23.39, missed its second-quarter earnings estimates by 1 cent, with
profits of 51 cents a share.
From TM’s Implosion List, computer retailer
CDW Computer
(
CDWC |
Quote |
Chart |
News |
PowerRating) is down 5.56% at 41.95.