Why Tomorrow Will Be A Big Day For Retail

May 13, 2002
Daniel Beighley

The
markets kicked off the week with the bulls in the driver’s seat as
price action headed north for the first part of the session, trended sideways
mid-day, and rallied again into the close. Leading the action were the
semiconductors, software, Internet, and computer hardware stocks, with
healthcare, Japan, and utilities in the red.

U.S. Treasury Bonds were
down 101 at 101 ’01.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.64, and up
volume over down volume by a 2.65 ratio. Nasdaq advancing issues over declining
issues came in at 1.50, and up volume beat down volume by a 3.06 ratio. The
VIX
was down 1.53% at 23.50. The TRIN
was down 2.11 at 0.62.

Light volume saw the Dow
move off its 200-day MA and north of its 20-day MA,Â as the S&P 500 and
Nasdaq took back Friday’s losses. The Semiconductor Index
(
SOX.X |
Quote |
Chart |
News |
PowerRating),
up 6.07% at 509.16, closed higher than its last two sessions. The
Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), up 2.72%, also took back Friday’s losses
as it fell just shy of its 20-day MA.

Semiconductor company Applied
Materials (AMAT),
up 7.93% at 25.58, has had its earnings estimates raised by Goldman Sachs based
on stronger–than–expected
order recovery. The company will announce earnings after the bell tomorrow.

Clothing retailer Lands End (LE),
up 20.99% at 61.73, is to be acquired by Sears (S)
for $62 per share in a deal
worth a total of $1.9 billion. Sears says the transaction does not alter its
outlook for the year.

Chip maker Rambus (RMBS),
down 2.87% at 6.41, is reported by USA Today to be the target of an
antitrust lawsuit filed by the Federal Trade Commission.

Also from the chip making business, Micron Technology
(
MU |
Quote |
Chart |
News |
PowerRating), up
5.02% at 23.60, received positive comments form UBS Warburg who said the decline
in the stock is “overdone,” and is trading at an attractive level.

Airline company UAL
(
UAL |
Quote |
Chart |
News |
PowerRating), up 19.78% at 11.38, was upgraded by
Goldman Sachs to “buy” from “market perform” for its
increasing market share and valuation.

Electric utilities company CMS Energy (CMS),
down 16.79 at 16.05, said that the U.S. Securities and Exchange Commission has
asked it to provide information on simultaneous purchases and sales of
electricity involving the same partners.

Recreational products company Marvel
Enterprises (MVL),
down 9.10% at 6.99, is the subject of a New York Post article claiming
the valuation of the company is too high,
even if everything goes right from here on.

Communications equipment maker Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating), down 9.96% at
2.62, fell after it was announced that it will sell $2.5 billion in securities.

Also in the communications equipment sector, Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), up
8.54% at 29.09, was upgraded by UBS Warburg to “buy” from “hold.”

From TM’s Momentum
List, electronic retailer Radio Shack
(
RSH |
Quote |
Chart |
News |
PowerRating),up 3.24% at 34.68 .

Why Tomorrow Will Be A Big Day For Retail

BUY THE FEAR, SELL THE GREED

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