Where There’s Strength…
The markets had a negative reaction to retail
data and profit warnings from communication heavyweights this morning, driving all
three major indexes into negative territory. Biotechnology stocks are putting in
strong performances, while all other technology sectors are experiencing selling
pressure.
Market breadth is negative, with Nasdaq breadth
showing a clear downward bias with over 3:1 down-volume over up-volume and 2:1
declining issues over advancing issues.
The Commerce Department reported that retail
sales fell 3.7%, the biggest one-month drop since 1992. Analysts were
expecting a 3% drop. Auto sales were the hardest hit.
The Labor Department announced initial jobless
claims fell by 86,000 to 394,000, the largest drop since 1992.
Networking company
Ciena
(
CIEN |
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Chart |
News |
PowerRating),
down 14.30% at 15.40,
warned that it expects quarterly sales to fall 30% – 40% for a possible
operating loss for the year.
Telecom
equipment maker Lucent
(
LU |
Quote |
Chart |
News |
PowerRating), down 12.03% to 6.80,
announced that revenues will fall 30% – 35% for the last quarter, a bigger loss
than analysts expected.
Leading sectors today are the Biotechnology
Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), up
2.25% at 573.19, and the Forest and Paper Products Sector Index
(
$FPP.X |
Quote |
Chart |
News |
PowerRating), up
1.41% at 328.04.
The biggest losing sectors today are the
Networking Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating), down 6.65% at
324.71, and the GSTI Multimedia Networking Index
(
$GIP.X |
Quote |
Chart |
News |
PowerRating), down
5.99% at 130.75.
From our percent gainers list:
Great Atlantic & Pacific Tea
(
GAP |
Quote |
Chart |
News |
PowerRating) is
up
10.55% at 22.84 on
above-average volume. This grocery retailer has no news reported.
Americredit Corp
(
ACF |
Quote |
Chart |
News |
PowerRating) is up
+8.08% at 28.37. This consumer financial services company has no news reported.
Prudential
(
PRU |
Quote |
Chart |
News |
PowerRating) is up
8.04% at 29.71 on less than 100% average volume. This investment services
company is a new IPO.
From our percent losers list:
Macromedia Inc.
(
MACR |
Quote |
Chart |
News |
PowerRating) is down
28.27% at 19.49 on over four times average volume. This software and
programming company released a revenue warning.
Ciena Corp.
(
CIEN |
Quote |
Chart |
News |
PowerRating) is down
14.30% at 15.40 on twice average volume. This communications equipment company
warned on quarterly earnings.
Jack Henry
(
JKHY |
Quote |
Chart |
News |
PowerRating) is down 13.90%
at 19.82 on four times average volume. This computer networks company warned on
quarterly earnings.