Crucial Area For Nasdaq–Here’s Why

Stocks were mixed on quad witching Friday, with the
Dow and S&P down for a second week and the Dow making a 6-week low.  The
Nasdaq fell below 2000 intraday but closed above it and the NDX fell below its
200-day MA intraday but also managed to close above it. The Nasdaq closed at its
lowest level for the year. High oil prices continue to weigh on the market;
crude closed above $56/barrel. So far in 2005, oil is up $15, and up 50% since
March 2004.

Radio Shack
(
RSH |
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PowerRating) cut profit forecast–for the second time in a
month. Continental Airlines
(
CAL |
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PowerRating) said it sees a “significant loss”
for 2005.

Morgan Stanley raised its rating on Apple
(
AAPL |
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PowerRating).  Deutsche
Bank raised its rating on Intel
(
INTC |
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PowerRating). 

Nike
(
NKE |
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PowerRating) beat estimates, reporting $1.01 vs. 0.74 this time last
year.

Adobe
(
ADBE |
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PowerRating) beat estimates by 0.03 and guided higher. The company
also announced a 2:1 stock split.

Import prices for February +0.8%, boosted by rising gas prices; export prices
were unchanged.

Consumer sentiment slipped for a third straight month. The University of
Michigan Consumer Sentiment Index was 92.9–worse than expected–vs. 94.1 in
February.

WalMart traded almost 60 million shares after it was re-weighted in
the S&P 500. The Walton family holds 40% of the stock.

Merrill Lynch added Southwest
(
LUV |
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PowerRating)] to its Focus One list. On a
separate but related note, the FAA predicts there will be 1 billion fliers in 10
year–a 46% increase from current levels. Regional carriers are expected to fuel
the increase.

Stocks in the News

Palm
(
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PowerRating) cut Q4 estimates; Bear Stearns upgraded the stock.

Dreamworks
(
DWA |
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PowerRating) reported a Q4 profit, citing strong “Shark Tale”
and “Shrek 2” DVD and video sales.

Borders
(
BGP |
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PowerRating) was the subject of a favorable in The Wall Street
Journal’s “Heard on the Street” column.

Business Week said that earnings at JP Morgan
(
JPM |
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PowerRating) will be “much
worse” than the current $3.06 estimate.