Testing Traders’ Reflexes
The major averages rebounded in early trading in a
reflexive move from three days of selling. But pessimism about corporate
earnings and economic growth is outweighing some positive earnings results out
from the tech sector and oil patch. The weak rebound is keeping traders alerted
to additional follow-through moves to the downside as participants await gross
domestic product figures slated for release this Friday. The consensus estimate
for GDP is for 1% growth.
The Nasdaq is down 6.28 at 1952.71, the Dow is up 46 at
10,287, and the S&P 500 is up 4.57 at 1176.22.
Peregrine Systems
(
PRGN |
Quote |
Chart |
News |
PowerRating) said its loss narrowed as
sales rose 82%. Peregrine is up 4.43 at 25.83.
PeopleSoft
(
PSFT |
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Chart |
News |
PowerRating) gapped open but is selling off
from its highest levels of the session after reporting a surprisingly strong
quarter and upping its earnings estimates for the year. The stock is up 2.01 at
36.20.
Not surprising, given that crude oil prices were as high
as $30 a barrel just two months ago, oil and oil service firms are reporting strong earnings. Texaco
(
TX |
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Chart |
News |
PowerRating) is up after exceeding Street views and
oil services giant Schlumberger
(
SLB |
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PowerRating) said profits rose.
In the sectors, North American telecom
(
XTC |
Quote |
Chart |
News |
PowerRating), +1.79%,
forest and paper products
(
FPP |
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Chart |
News |
PowerRating), +1.25%, and oil
(
XOI |
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PowerRating), +1.11%, are
higher. Semiconductors
(
SOX |
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PowerRating), -2.46%, gold and silver
(
XAU |
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News |
PowerRating), -2.37%, and
Internets
(
GIN |
Quote |
Chart |
News |
PowerRating), -1.07%, are weighing on the market.
Stocks in the defensive drug sector matched earnings
expectations. Bristol-Myers Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating) is being rewarded, up 1.46%, while
Schering-Plough
(
SGP |
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Chart |
News |
PowerRating) is off 2.32% to 37.07.