Why Traders Are Watching Today’s Action Carefully

March 14, 2003
Daniel Beighley

The
major averages are mixed midday as price action takes a breather from
yesterday’s powerful move. Slightly disappointing econ data has buyers on guard,
as the situation with Iraq remains diplomatically inconclusive. This Sunday,
President Bush will hold a summit to discuss Iraqi disarmament. As geopolitical
issues play out, traders watch to stay on the right side of the action.
Yesterday’s rally is being watched carefully for signs of follow through.

In economic news, PPI came in at 1.0% vs.
expectations of 0.6%, core PPI was at – 0.5% vs. estimates of 0.1%,
business inventories rose at an expected 0.2% rate, industrial production
was at an expected 0.1%, capacity utilization gave no shocks with a
reading of 75.6% vs. estimates of 75.7%, and Michigan sentiment came in
at 75.0 vs. expectations of 78.0.

The 10-year U.S. Note
is +050 at 116 140.

The dollar is +0.55 at
100.16.

Gold is +0.60 at 336.60.

Crude OilÂ -0.87 at
35.14.

Volume is at 794,466,000
on the NYSE, and at 899,614,000 on the Nasdaq.

Market breadth is mostly
positive, with NYSE advancing issues over declining issues by a ratio of
1.22, and up volume over down volume by a 1.18 ratio. Nasdaq declining issues
over advancing issues are at 1.05, and up volume over down volume is at a 1.39
ratio.

Strongest in the Dow are:

Stocks In The News:

Computer peripherals maker
Symbol Technologies
(
SBL |
Quote |
Chart |
News |
PowerRating), -10.83% at 9.54, said that the SEC has
recommended civil action against the company over accounting issues.

Discount broker Ameritrade
(
AMTD |
Quote |
Chart |
News |
PowerRating), -7.15% at 4.039, lowered its earnings guidance for the rest of the
year due to a weak market conditions.

Auto maker Ford Motor Co.
(
F |
Quote |
Chart |
News |
PowerRating), -4.21% at 6.83, announced that it plans to cut production 17% from a year
ago claiming that war worries and a weak economy could be a drag on consumer
spending.

Steel maker U.S. Steel
(
X |
Quote |
Chart |
News |
PowerRating),
-1.91% at 10.29, sold off after Merrill Lynch lowered its first-quarter
estimates on the company to a loss off $0.19 per share vs. previous estimates of
a gain of $0.40 per share.

Aerospace and defense company
Alliant Tech
(
ATK |
Quote |
Chart |
News |
PowerRating), +4.66% at 49.91, has been upgraded by Salomon
Smith Barney to “outperform” from “in-line”.

Printing and publishing company
Knight-Ridder
(
KRI |
Quote |
Chart |
News |
PowerRating), -3.73% at 58.87, has been downgraded by Merrill
Lynch to “neutral” from “buy.”

Railroad company Union
Pacific
(
UNP |
Quote |
Chart |
News |
PowerRating), +0.91% at 53.14, has been downgraded by Salomon Smith
Barney to “underperform” from “in-line.”

Drug maker Trimeris
(
TRMS |
Quote |
Chart |
News |
PowerRating),
-3.89% at 42.24, has announced that it has received FDA approval for its HIV
drug Fuzeon. The drug is the first to prevent HIV replication.

Conglomerate Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating),
-3.98% at 11.80, reassured investors that it is on track to meet earnings
expectations after many have raised concerns over the company’s bookkeeping
practices.

Software maker Adobe Systems
(
ADBE |
Quote |
Chart |
News |
PowerRating), +6.21% at 30.29, beat its first-quarter earnings expectations by
$0.03 with profits of $0.25 per share.

Airline JetBlue Airways
(
JBLU |
Quote |
Chart |
News |
PowerRating), +6.19% at 25.75, is the focus of a positive Business Week
article which claims the stock could be heading for new highs.

Home builder KB Home
(
KBH |
Quote |
Chart |
News |
PowerRating),
+1.24% at 45.78, beat its first-quarter earnings expectations by $0.08 with
profits of $1.25 per share.

danielb@tradingmarkets.com

Why Traders Are Watching Today’s Action Carefully

BUY THE FEAR, SELL THE GREED

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