Why Sentiment Headed Higher Today

November 14, 2002
Daniel Beighley

However, after the bell Dell
(
DELL |
Quote |
Chart |
News |
PowerRating) announced earnings results in line with expectations, and proceeded
to erase nearly all of the day’s gains. After-hours quotes can often be far from
reality, though this does not bode well going into tomorrow.

There were no losing sectors
today.

In economic news, retail
sales (ex-auto) rose 0.7% vs. an expected 04%, and initial jobless claims
were at 388,000 vs, an expected 405,000.

The 10-year U.S. Note
was – 1 100 at 113 305.

The Dollar was +0.15 at
105.42.

Volume was average, at
1,449,703,000 on the NYSE, and atÂ
1,739,859,000 on
the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 2.69, and up
volume over down volume by a 5.85 ratio. Nasdaq advancing issues over declining
issues came in at 2.13, and up volume beat down volume by a 5.63 ratio.

The

VIX was -3.68 at 32.60. The

TRIN was -0.37 at 0.46.

Leading the Dow, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
+6.01% at 19.21, announced it will purchase an additional 480 million shares.

Stocks in the news:

The country’s second-largest
credit company, Household International
(
HI |
Quote |
Chart |
News |
PowerRating), +5.04% at 27.50, is to
be acquired by HSBC in a stock deal worth $14 billion, pricing its shares at $30
a piece.

Aerospace and defense company
Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating), -2.09 at 23.16, announced yesterday that its insurance
may not cover an asbestos settlement. The company has also been downgraded by
Salomon Smith Barney to “underperform” from “in-line”.

In the pharmaceutical business,
Merck
(
MRK |
Quote |
Chart |
News |
PowerRating), +2.15% at 53.94, was reported by the Wall Street Journal to
be the target of a lawsuit from West Virginia’s attorney general over drug costs
and rebates. And, Schering Plough
(
SGP |
Quote |
Chart |
News |
PowerRating), +4.11% at 21.51, announced
that its chief executive officer will resign as the company is under
investigation by three U.S. government bodies.

Broker Charles Schwab
(
SCH |
Quote |
Chart |
News |
PowerRating),
+13.91% at 10.97, was upgraded by Morgan Stanley to “equal weight” from
“underweight” as it raised estimates on the stock.

Retailer Target
(
TGT |
Quote |
Chart |
News |
PowerRating),
+11.52% at 33.49, beat its third-quarter earnings estimates by $0.02. with
profits of $0.30 per share.

Software company Intuit
(
INTU |
Quote |
Chart |
News |
PowerRating), -6.84% at 49.25, beat its first-quarter estimates by $0.02 with
profits of $0.09 a share.

Biotech company Biogen
(
BGEN |
Quote |
Chart |
News |
PowerRating),
+5.27% at 40.14, rose after it announced a label change for its drug Avonex.

In the semiconductor business
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), +7.21% at 15.76, rose after it beat Wall
Street forecasts, though remained cautious on the fourth-quarter.

Computer hardware maker
International Business Machines
(
IBM |
Quote |
Chart |
News |
PowerRating), +1.72% at 80.72, reaffirmed its
profit and revenue guidance for 2003.Â

Communications services company
Sprint FON
(
FON |
Quote |
Chart |
News |
PowerRating), +2.86% at 13.65, said that it will cut is workforce
by 1,600 jobs to reduce costs in an effort to deal with weak sales.

From TM’s Momentum List,
communications services group j2 Global
(
JCOM |
Quote |
Chart |
News |
PowerRating), +15.94% at 24.29.

Why Sentiment Headed Higher Today

BUY THE FEAR, SELL THE GREED

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