Will It Be A Turnaround Tuesday?

  • May 20, 2003
  • Vincent Mao

Stocks are
modestly higher this midday Tuesday. Following yesterday’s 2%+ drop,
the major indices are back near the highs of the day after hovering above the
flat line. Better than expected results from retailers Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating) and
Nordstrom
(
JWN |
Quote |
Chart |
News |
PowerRating) inspired pullback buyers. The drug sector is weak again
after yesterday’s Supreme Court ruling that allowed the state Maine to develop
programs for lower prescription drug prices for the uninsured and poor. Merck
(
MRK |
Quote |
Chart |
News |
PowerRating), Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating) and Bristol-Myers Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating) are all lower
by 3% today. Bonds are continuing their recent rallies. The dollar is again
weak and gold continues to make way into its three-month high.  Dow component
Hewlett-Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating) is set to report results after the close. Analysts are
expected 27 cents a share. Will we see a turnaround Tuesday?


The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is +0.36% at 8,524.63. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) is +0.32% at 923.78. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is +0.33%
at 1497.74.


The day’s leading sectors are
Healthcare
(
$HMO.X |
Quote |
Chart |
News |
PowerRating), +3.22%, Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating),
+2.93%, Telecoms
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), +1.63%,  Networking

(
$NWX.X |
Quote |
Chart |
News |
PowerRating), +1.24%, and Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
+1.11%,


Weak today are Drugs

(
$DRG.X |
Quote |
Chart |
News |
PowerRating), -1.50%, Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), -1.41%, Oil
Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), -0.81%,  Computer Boxmakers

(
$BMX.X |
Quote |
Chart |
News |
PowerRating), -0.38%, and Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating),
0.32%


No economic news today. 


The 10-year US
Note is +80 at 118 135.


The dollar is -0.41 at
93.49.


Gold is +2.60 at
367.10.


Crude Oil  -0.241 at
28.05.


Volume is at heavy at
723,000,000 on the NYSE, and at 885,000,000 on the Nasdaq.


Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 1.50, and up
volume over down volume by a 1.31 ratio. Nasdaq advancing issues are over declining
issues at 1.02, and up volume is over down volume at a 1.11 ratio.


Top Dow stocks are:


Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating), +10.86% at 31.12,
Altria Group
(
MO |
Quote |
Chart |
News |
PowerRating) +4.11% at 34.90, Hewlett-Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating)
+2.19% at 17.26, AT&T
(
KO |
Quote |
Chart |
News |
PowerRating) +2.33% at 17.96, General
Electric
(
GE |
Quote |
Chart |
News |
PowerRating) +1.41% at 27.94 and Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) +1.37% at
53.19.  


Stocks in the news:


Agilent Technologies
(
A |
Quote |
Chart |
News |
PowerRating) is
trading higher by 5% after reporting in line second quarter results. The company
reported a second quarter loss of 31 cents a share vs. a loss of 55 cents a
share in the same period a year ago. Revenue did come in higher than
expected. 


Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating) is higher
by 10% after the home improvement giant reported first quarter results a penny
above estimates. Home Depot reported earnings of 39 cents a share compared to 36
cents a share in the same period a year ago. The company also reaffirmed
full-year results.  


Nordstrom
(
JWN |
Quote |
Chart |
News |
PowerRating) is trading
higher by 8.7% after the company reported first quarter earnings of 20 cents a
share compared to a loss of 18 cents in the same period a year ago. The company
beat estimates by 6 cents. 


Dillard’s
(
DDS |
Quote |
Chart |
News |
PowerRating) is trading
lower by 5.5% on double its average volume. Including several one-time charges,
the company reported first quarter results of 29 cents a share or 14 cents below
estimates. Dillard’s blamed the results on the weak retail
environments. 


Despite reporting fourth quarter
results in line with estimates, medical device maker Medtronic
(
MDT |
Quote |
Chart |
News |
PowerRating)
is off over 2.5% on heavy volume. The company also reported a 20% jump in
revenues.  


href=”mailto:danielb@tradingmarkets.com”>vincentm@tradingmarkets.com