A Nasdaq Milestone

October 8, 2003
Brice Wightman

Stocks fell
Wednesday, snapping a
five-day win streak. The market was
characterized by listless, nervous trading as traders waited for the initial
claims number on Thursday. Better-than-expected earnings from Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating), as well as SAP’s
(
SAP |
Quote |
Chart |
News |
PowerRating)
higher revenue guidance are failing to boost the averages. As the first Dow
component to report third-quarter results, Alcoa posted their biggest quarterly
profits in two years. German business software maker SAP
(
SAP |
Quote |
Chart |
News |
PowerRating) lifted its
revenue guidance due to better closure rates. Bonds took a breather

The first Biotech IPO in a long time, Acusphere
(
ACUS |
Quote |
Chart |
News |
PowerRating) came at $14,
made a high at the open of 16.25, and went out at 14.50.

Tomorrow is the 1-year
anniversary for the Nasdaq lows. On October 9 2002, the Nasdaq traded down to
1114, a six-year low — and has gained 70% since that day.

Traders watched for any effect
Arnold Schwarzenegger’s winning the California gubernatorial recall election
would have on the market — as Mr. Schwarzenegger promised to make Indian gaming
casinos pay taxes — but little effect was felt on gaming stocks.

In economic news, Wholesale
Inventories in August fell by 0.2%, economists were expecting a 0.1% rise.

The 10-year US Note
was +050 at 112 130.

The dollar was -0.17 at
91.72.

Gold was -2.00 at 375.80.

Crude Oil was -0.59 at
29.81.

Volume was
1,243,385,000 on
the NYSE, and 1,780,633,000 on the Nasdaq.

Market breadth was Negative,
with NYSE declining issues over advancing issues by 1.18 and down over up volume
by 1.59. Nasdaq declining issues over advancing issues at 1.41, and up volume
over down volume at 1.06.

Top Dow stocks were:

Stocks in the news:

Boise Cascade
(
BCC |
Quote |
Chart |
News |
PowerRating)
is higher by 2.2% after the company announced that its third-quarter results
will exceed current analysts’ estimates. Thanks to higher lumber prices, Boise
said that results from its building solutions unit posted “sharply higher”
results. The company now sees earnings of 40 to 44 cents a share, compared to
consensus estimates of 29 cents a share.

Aluminum producer Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating) is higher by 1.70% after the Dow component reported third-quarter results
that topped expectations by 4 cents. Late yesterday, the company reported
earnings of 33 cents a share, compared to 23 cents a share in the year-ago
quarter. Revenues rose 3% to $5.3 billion. According to CEO Alain Belda,
“Strength in the aluminum market and continued focus on productivity and cost
control helped deliver the most profitable quarter in two years.”

Home video and DVD retailer
Movie Gallery
(
MOVI |
Quote |
Chart |
News |
PowerRating) is higher by 7.15% after lifting its third-quarter
targets. Due to stronger-than-expected same-store sales, the company now sees
earnings of at least 29 cents a share. Previously the company had expected 25 to
27 cents a share.

Business software maker SAP
Aktiengesell
(
SAP |
Quote |
Chart |
News |
PowerRating) is higher by 14% after the company raised its
third-quarter revenue guidance. The German-based software company sees revenues
of 1.65 billion euros or $1.95 billion. Analysts are currently looking for $1.80
billion.

CSG Systems
(
CSGS |
Quote |
Chart |
News |
PowerRating)
is lower by more than 40% after the company announced that its third-quarter
results would be hurt due to a negative ruling. As a result over a contract
dispute, CSG was ordered to pay Comcast $120 million in damages. CSG’s
third-quarter results could be negatively impacted by 9 to 16 cents a share.

If you have any comments or questions, please
feel free to email me.

Brice
Wightman

bricew@tradingmarkets.com

A Nasdaq Milestone

BUY THE FEAR, SELL THE GREED

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