Big Day For Nasdaq; Dow Breaks Losing Streak
Stocks
rose Friday, with the Nasdaq scoring its biggest rally since November 24, 2003
and the Dow broke a three-week losing streak. The much anticipated jobs number was released
before the open. Jobs
in January grew by 112,000 — the fastest pace in three years. The nation’s unemployment rate
fell to 5.6%, the lowest since January 2002, but jobs growth numbers
disappointed some as consensus was 165,000 and because 70% of the new jobs were
added to the retail sector. The December jobs number was revised to 16,000 from
1,000.
Fund inflows for the week
ending Wednesday were $3.76B and 24B year-to-date. Outflows from tech were
$96.8B, and flows into healthcare were $74.1B. High yield saw its biggest
outflow since August 2003.
Health Insurer Cigna
(
CI |
Quote |
Chart |
News |
PowerRating)
reported higher earnings despite a drop in enrollment. Earnings rose to $290
million on revenue of $4.5 billion. CI also announced it would cut its dividend
from 33 cents to 2.5 cents a share and reduce expenses by eliminating 3000 jobs.
California Micro Devices
(
CAMD |
Quote |
Chart |
News |
PowerRating) reported earnings of a $2.5 million
vs. a $164,000 loss last year. Revenue rose 14% to $17 million. CAMD shares are
up 23% for the day. Telecommunications maker
Ericsson
(
ERICY |
Quote |
Chart |
News |
PowerRating) reported earnings of $13.6 million on revenue of
$4.9 billion. Goldman Sachs upgraded the stock on the news and ERICY traded
13% higher.
The G-7 is meeting in Florida
today and tomorrow; look for potential volatility in currencies Sunday
night/Monday morning.
| Dow | +97.48 |
10593.03 |
| S&P 500 |
+14.17 |
1142.76 |
| Nasdaq | +44.45 |
2064.01 |
The day’s leading sectors were
Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +4.77%, Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +5.97%,
Gold and Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating) +4.85%, Networking
(
NWX.X |
Quote |
Chart |
News |
PowerRating)
+2.10%, and Hardware
(
DDX.X |
Quote |
Chart |
News |
PowerRating) +3.12%,
Economic news releases included
lower-than-expected Average Workweek hours at 33.7, and Productivity levels up
2.7%. Nonfarm payrolls fell to 112K, and the unemployment rate fell to 5.6%.
10-year Notes were +250
at 114 005
The dollar
was -0.95 at 85.95
Gold was +6.20 at 403.05
Crude Oil was -0.60 at
32.48
Volume was
1,456,198,000 on
the NYSE, and 1,856,818,000 on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2663 | Up Vol 1256 |
| Declining | 671 | Down Vol 194 |
| Ratio | 3.96 | 6.47 |
| Nasdaq | ||
| Advancing | 2382 | Up Vol 1519 |
| Declining | 804 | Dow Vol 329 |
| Ratio | 2.96 | 4.61 |
Stocks in the news:
American Power Conversion
(
APCC |
Quote |
Chart |
News |
PowerRating)
posted a $58 million profit or 28 cents a share on revenue of $430.6 million, up
20%. The company traded lower on a downgrade by Stephens Inc.
Corning
(
GLW |
Quote |
Chart |
News |
PowerRating) reaffirmed its
earnings outlook on $800 million sales at 4 cents a share, citing strong demand
for LCDs and stable telecommunications operations.
McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating) reported a 13.4%
rise for same-store US sales, with total European sales up by 25.6%. Bank of
America raised MCD’s full-year earnings estimates by 2 cents.
GlaxoSmithKline is expected to book a
$403 million legal charge in its 2003 fourth quarter after settling a US
anti-trust case over its arthritis drug Relafen.
bricew@tradingmarkets.com