Why Retail Could Be Key…

June 5, 2002
Daniel Beighley

The major indices lapped up off
the opening bell, then turned down in the first half-hour to trend to the day’s
lows around 11:30 ET, where an uptrend ensued into the close. Big caps were the
day’s leaders, with healthcare, retail, and broker/dealers advancing modestly;
gold and silver, oil service, networking, and utilities weighed down the minus
column.Â

U.S. Treasury Bonds were
down 16 at 102 ’00.

In economic news, the ISM
Services index gave the markets an initial boost, rising to 60.1% for May,
up from 55.3% in April. Wall Street was looking for a 55.9% level.Â

Market breadth was mostly
positive, with NYSE advancing issues over declining issues by a ratio of
1.23, and up–volume
over down–volume
by a 1.38 ratio. Nasdaq declining issues over advancing issues came in at 1.05,
and up–volume
beat down–volume
by a 1.04 ratio. The
VIX
was down 1.99 at 24.95. The TRIN
was down 0.51 at 0.93.

Enterprise management software maker Manugistics
(
MANU |
Quote |
Chart |
News |
PowerRating), down
25.69% at 5.90, warned that it would earn less as the market slumps, and will be
reducing its workforce. The stock was downgraded by Goldman Sachs, US Bancorp
Piper Jaffray, and Thomas Weisel Partners.

Electronic design automation software company Synopsis (SNPS),
down 0.38% at 49.64, announced that earnings for its third quarter will be 48
cents to 53 cents a share, which is below what many analysts were expecting.

Business integration software maker Tibco Software (TIBX),
down 1.48% at 5.30, said that it had a second quarter loss, as sales were as
much as $19 million less than expected.

Communications equipment maker Ericsson (ERICY),
up 2.75% at 2.24, warned that it sees no improvement for its market next year.
Though confident the company will turn a profit next year, the company’s CEO
remains conservative in what he sees as a prolonged downturn.

Drug maker Astrazeneca (AZN),
up 0.91% at 43.15, has received an approval letter from the FDA for its
cholesterol drug Crestor. The company intends to launch the drug by the first
quarter of this year.

Discount retailer Wal-Mart (WMT),
up 1.77% at 54.96, reported that same-store sales were up 6.2% in May from a
year earlier. The company was expecting a percentage increase somewhere in the
mid single digits.Â Â

Why Retail Could Be Key…

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources