Winners Of The Day…

April 26, 2002
Daniel Beighley

The major indexes staged an
opening reversal to the downside, where price action continued to move south for
losses on the day. Gold and silver was the clear winner of the day, with
Internet, oil service, and Mexico issues also closing positive. The markets are
currently flirting with psychological support levels, with the Dow under 10,000,
and the S&P 500 breaking below its pre 9/11 levels. Be sure to refer to the market
bias indicators for new CVR signals.

U.S. Treasury Bonds were
up 13 at 102’07.

Economic releases were at
center stage for Wall Street, as the
nation’s GDP grew at an eye-popping 5.8% for the first quarter. Economists
polled by Thompson Global Markets were looking for a 5% increase. Tony
Crescenzi commented that “Bulls will be encouraged by the
stronger-than-expected gain in final sales, while bears will highlight the
continued weakness in capital spending.” Also, the University of
Michigan’s sentiment index for the end of April came in at 93.0, down from
the mid-April level of 94.4. Economists were looking for a 94.5.

In economic news, the employment
cost index came in at 0.8% for the first quarter vs. the 1% expected. Initial
jobless claims came in at 421,000, short of analysts’ expectations of
430,000. Finally, the help wanted index came in at a 46 reading, also
short of expectations, with economists looking for a 53.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.52, and down–volume
over up–volume
by a 3.04 ratio. Nasdaq declining issues over advancing issues came in at 1.93,
and down–volume
beat up–volume
by a 5.55 ratio. The
VIX
was up 1.51 at 24.56. The TRIN
was up 0.77 at 1.99.

Above-average volume moved the
Dow to retest its 200-day MA, the S&P 500 held at its 1080 support level,
and the Nasdaq formed an outside day, closing at the bottom of its daily range.
The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), up 0.80% at 538.61, moved
briefly above its 200-day MA, though closed for the third day in a row below
this mark. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) closed at the bottom of
its daily range for its third consecutive close below its 200-day MA.

Drug maker
Amgen (AMGN),
down 2.46% at 53.84, raised its outlook for the year with an estimated 20%
increase in sales from a previous forecast in the high teens.

Online marketplace company Overture Services
(OVER),
up 31.75% at 33.77,Â rose after Yahoo! (YHOO),
up 1.04% at 14.50, announced that it will extend its agreement to use the
company’s service for three years.

Media giant Disney (DIS),
down 3.60% at 24.10, beat its fiscal second quarter
expectations, though showed a decline in profits. UBS Warburg has downgraded the
stock, while Prudential has
upgraded it.

Internet company Verisign Inc (VRSN),
down 45.77% at 9.89, announced that it will come in short of estimates for the
first quarter,
with earnings per share between 18 and 20 cents.

Electronics manufacturing company Flextronics
(FLEX),
down 0.07% at 13.46, beat its earnings estimates with sales of $3.3 billion,
compared to expectations of $3.18 billion.

Fiber optic networking company JDS Uniphase
(JDSU),
down 9.94% at 4.53, reported a loss of $4.3 billion for the quarter as sales
were reduced by one-third. The company also eliminated another 2,000 jobs.

Software company PeopleSoft
(
PSFT |
Quote |
Chart |
News |
PowerRating), down 2.87% at 21.26, met its
first quarter earnings targets, though said demand will be flat going forward.

Aerospace and defense company Boeing
(
BA |
Quote |
Chart |
News |
PowerRating), down 0.93% at 41.51,
rose after it was announced that it made a deal with Hong Kong’s Cathay Pacific
worth $600 million.

Biotechnology company Andrx Group (ADRX),
up 3.19% at 44.24, is sharply down in post-market
trading despite beating its earnings estimates by a penny. The company has
warned that profits for the second quarter will be weaker than expected.

Brokerage Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating), up 2.67% at 79.15, was upgraded by
Merrill Lynch from near-term “buy” to “neutral,” claiming
the company will be “shielded somewhat” from litigation from clients
because of its limited exposure to the private-client business.

From TM’s proprietary Implosion
List, food processing giant General Mills
(
GIS |
Quote |
Chart |
News |
PowerRating) fell 5.23% at
42.93.

Winners Of The Day…

BUY THE FEAR, SELL THE GREED

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