Is A Semiconductor Recovery Under Way?

May 9, 2003
Brice Wightman

Stocks
closed higher Friday. After a two-day pullback, the major indices
staged a broad-based rally with only gold stocks not participating. The catalyst for today’s
rally came from a better-than-expected earnings report from graphics chip maker Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating). Positive comments about a strong Chinese demand and a
recovery in the semiconductor industry from Intel president, Paul Otellini, also
help boosted the market.

Weak today are Gold
(
$HUI.X |
Quote |
Chart |
News |
PowerRating),Â
-0.195

The 10-year U.S. Note
is +10 at 116 230.

The dollar is up 0.05 at
95.16.

Gold is +0.20 at 348.90

Crude Oil +1.32 at
27.33.

Volume is
1,308,326,000
on the NYSE, and at 1,555,183,000 on the Nasdaq.

Market breadth was decisively
positive,
with NYSE advancing issues over declining issues by a ratio of 2.66, and up
volume over down volume by a 3.39 ratio. Nasdaq advancing issues over declining issues are at
1.93, and up volume over down volume is at a 3.71 ratio.

Top Dow stocks are:

Stocks in the news:

Chipmaker Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating)
was up over 30% on very heavy volume. Late yesterday the company reported first-quarter earnings that were off 80% from year-ago levels, but the company did
manage to beat estimates by 2 cents. This quarter’s lackluster results were due
mostly to slow sales of Microsoft’s XBox game console, but CEO Jen-Hsun Huang
expects XBox sales to pickup over the next two quarters.

Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating) was
higher by 10% on heavy volume. The company will end trading of its two separate
tracking stocks, Genzyme Biosurgery and Genzyme Molecular Oncology.

Video game maker Activision
(
ATVI |
Quote |
Chart |
News |
PowerRating) was off 4.5% on heavy volume. The company reported a fourth-quarter
loss of 13 cents a share, in line with expectations. Activision had previously
earned 17 cents a share in the same period a year ago. CEO Robert Kotick is
optimistic that the company’s diversified product line, strong partnerships, and
strong franchises will position the company for near- and long-term
opportunities.

ImClone Systems
(
IMCL |
Quote |
Chart |
News |
PowerRating)
was down 7.00% on big volume. The shares are under pressure today as a Wall
Street Journal article expressed doubt that the company’s auditors, KPMG, will
be unable to complete a review before the May 15 Nasdaq hearing. ImClone’s
shares are at risk of being de-listed because of the firm’s failure to file a 10K
report.

Is A Semiconductor Recovery Under Way?

BUY THE FEAR, SELL THE GREED

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