Why Traders Are Looking To Institutions

October 28, 2002
Daniel Beighley

After
gapping up off the open, the major indexes trended down for most of
the session, ending the day in negative territory. As we head into the end of
the month, many traders will be looking for institutions to mark stocks up for
the purpose of making their portfolios look better, and as

Kevin Haggerty mentioned, hold October’s gains for the end of the year. This
week will be packed with economic data, including a big day Friday, with, among
other important data, unemployment numbers.

There were no economic releases
today.

The 10-year U.S. Note
was +070 at 113 115.

The Dollar was -0.83 at
107.34.

Volume was average, at
1,342,785,000 on the NYSE, and
1,628,117,000 on
the Nasdaq.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.30, and down
volume over up volume by a 1.30 ratio. Nasdaq declining issues over advancing
issues came in at 1.15, and down volume beat up volume by a 1.41 ratio.

The

VIX was -0.60 at 35.67. The

TRIN was +0.17 at 1.00.

Leading the Dow down were:

Stocks in
the news:

Computer maker Dell Computer‘s
(
DELL |
Quote |
Chart |
News |
PowerRating), -0.10% at 28.94, CEO Michael Dell told reporters that he is seeing
improvement in overall demand for computer hardware.

Drug maker and Dow component
Merck Co.
(
MRK |
Quote |
Chart |
News |
PowerRating), +1.32% at 54.23, was upgraded by Bank of America
to “buy” from “market perform.”

Drug and biotech company
Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating), -0.70% at 49.09, announced positive results in its latest
study for its drug Enbrel for treating psoriatic arthritis.

Also in the drug-making
business, King Pharmaceuticals
(
KG |
Quote |
Chart |
News |
PowerRating), +5.29% at 17.90, posted
third-quarter earnings that beat estimates, and announced it is comfortable with
targets for the full year.

Healthcare facilities company
Tenet Healthcare Corp.
(
THC |
Quote |
Chart |
News |
PowerRating), -13.81% at 42.50, fell on a downgrade
from UBS Warburg to “reduce” from “hold,” due to perceived unsustainable growth
in the company’s revenues from Medicare outlier payments.

Capital goods manufacturer
Cummins
(
CUM |
Quote |
Chart |
News |
PowerRating), -2.89% at 24.46, announced that it miscalculated its
earnings for the third-quarter, and earned $0.96 per share vs. the $1.00
initially reported.

Retailer JC Penny
(
JCP |
Quote |
Chart |
News |
PowerRating),
+2.90% at 19.47, raised its third-quarter earnings expectations to $0.21 per
share vs. the Multex consensus of $0.19 per share.

Scientific and technical
instrument company Beckman Coulter
(
BEC |
Quote |
Chart |
News |
PowerRating), -4.41% at 27.50, was
downgraded by Banc of America to “market perform” from “buy.”

Food-processing company
Kellogg Company
(
K |
Quote |
Chart |
News |
PowerRating), -6.11% at 33.00, fellÂ after beating expectations for
the third quarter. The company reaffirmed its targets for the full year.

Communications services company
BellSouth
(
BLS |
Quote |
Chart |
News |
PowerRating), rose +4.64% at 26.79, despite having its credit
rating downgraded by Fitch due to continued erosion in the company’s core wire
line business.

Why Traders Are Looking To Institutions

BUY THE FEAR, SELL THE GREED

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