Will These Levels Prove Pivotal?
At
mid-day the major indexes are consolidating after losing ground this
morning. Despite upgrades and raised earnings guidance from key Dow stocks, the
market hasn’t been able to attract any buying pressure. The three major indices
are flirting with their 20-day moving averages, which may prove to be pivotal as
we head into the afternoon.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is -1.40% at 8,615.74 The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) is
 -1.10% at 907.45. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is -1.11% at 1,414.51.
Current leaders are airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), +6.02%, gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), +1.69%,
transportation
(
$TRAN.X |
Quote |
Chart |
News |
PowerRating), +1.32%.
Driving the action down are
computer hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating), -3.27%, networking
(
$NWX.X |
Quote |
Chart |
News |
PowerRating),
-2.43%, software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating), -1.86%.
In economic news, initial
claims came in at 355,000 vs. an expected 375,000.
The 10-year U.S. Note
is +090 at 113 015.
The Dollar is -0.04 at
106.20.
Volume is at 647,276,000
on the NYSE, and 843,147,000 on the Nasdaq.
Market breadth is negative,
with NYSE declining issues over advancing issues by a ratio of 1.59, and down
volume over up volume by a 2.67 ratio. Nasdaq declining issues over advancing
issues came in at 1.58, and down volume beat up volume by a 2.01 ratio.
Leading the Dow down, JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), -4.09% at
23.69, is under pressure on fears of UAL Corp.’s news, Boeing
(
BA |
Quote |
Chart |
News |
PowerRating),
-3.42% at 32.77, Intel Corp.
(
INTC |
Quote |
Chart |
News |
PowerRating), -3.62% at 19.02, General
Electric
(
GE |
Quote |
Chart |
News |
PowerRating), -2.56% at 25.84, and McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating), -2.67% at
17.88.
Stocks in
the news:
Semiconductors are under
pressure, even as Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating), +2.57% at 8.052,
raised their earnings guidance. Elsewhere in the sector, Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating), +0.11% at 18.25, Micron Technology
(
MU |
Quote |
Chart |
News |
PowerRating), -1.79% at 13.70,
KLA-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating), -2.04% at 39.27, and Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating),
-0.85% at 14.98.
In the retail sector,
Federated Department Stores
(
FD |
Quote |
Chart |
News |
PowerRating), -2.27% at 30.54, announced that
November same-store sales fell 7.4%, with December sales expectations uncertain.
The company operates Macy’s and Bloomingdale’s, and created worries over the
overall retail sector.
Office supply company Office
Depot
(
ODP |
Quote |
Chart |
News |
PowerRating), -1.60% at 16.04, said that it expects same store sales in
North America to be in the single digits due to disappointing October results,
though the company reaffirmed its fourth-quarter earnings targets.
Air carriers are well bid as
UAL Corp.‘s news
(
UAL |
Quote |
Chart |
News |
PowerRating), -58.33% at 1.30, brought up American Airlines
(
AMR |
Quote |
Chart |
News |
PowerRating), -10.37% at 7.77, Northwest Airlines
(
NWAC |
Quote |
Chart |
News |
PowerRating), and
Delta
(
DAL |
Quote |
Chart |
News |
PowerRating), +9.03% at 8.33.
Computer hardware king
International Business Machines
(
IBM |
Quote |
Chart |
News |
PowerRating), -0.60% at 83.09, said that it
intends to make up a $3 billion loss in its pension fund by the end of the year.
Household product maker
Procter and Gamble
(
PG |
Quote |
Chart |
News |
PowerRating), -0.67% at 85.47, has been upgraded by Banc of
America to “buy” from “market perform”.
Investment services company
Morgan Stanley
(
MWD |
Quote |
Chart |
News |
PowerRating), -3.34% at 42.55, has been downgraded by Merrill
Lynch to “neutral” from “buy” based on valuation.
Electronic retailer Best Buy
(
BBY |
Quote |
Chart |
News |
PowerRating), -0.86% at 26.59, has raised its earnings guidance to $0.24-0.27 per
share vs. previous estimates of $0.22.
Drug maker Merck
(
MRK |
Quote |
Chart |
News |
PowerRating),
+0.39% at 59.07, has raised its earnings guidance for 2003 to $3.40-3.47 pre
share vs. previous estimates of $3.37 per share.