There Was Something Positive In The NAPM Number
Stocks opened lower and continued
to trade down throughout the session.
Economic news today was not very
positive for the markets. The NAPM non-manufacturing sector numbers were
reported today and were worse than expected. This was contrary to last week’s
NAPM manufacturing numbers, which rose better than expected.
The NAPM numbers fell from 48.9% in
July to 45.5% for August. This is the lowest level in the past four years and well
below the consensus of 49.5%. However, looking forward we can anticipate the
Fed will maintain its current policy in stimulating the economy until they are
certain that economic growth is excelling. Indications show that a recovery
should begin toward the end of the year as the inventory drawdown process is
coming to end. Also, looking at the NAPM manufacturing orders, it is typically a
leading indicator by about three months and should continue to up tick.
Looking at breadth for the session, as
you guessed, it was negative.
NYSE advancers lagged decliners 956 to 2155. Nasdaq advancers fell behind decliners
869 to 2269.
The broader markets ended lower, with
the Nasdaq Composite losing 3.0% and the Dow Jones Industrials falling 1.9% to
close below the 10,000 level.
Volume was moderate for the day.
The CBOE Volatility Index
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ended up 12.1%, and the Nasdaq 100 Volatility Index
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Both the QQV and VIX are still working off of signals showing a bias upward as
the two indices have made extreme readings.
Sectors in the green were the Oil
Services Index
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The Oil Index
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fractionally closing flat on a percentage basis. The Insurance Index
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eked out a gain of 0.2%.
Sectors lagging in the session were
the Retail Index
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its April lows.
The Securities/Broker Dealer Index
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fell 3.2%.
And the Semiconductor Index
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lost 4.3%.
Stocks moving higher in the trading
day were the Philippine Long Distance Telephone
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PHI |
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Oil services company Noble Drilling
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NE |
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climbed 5.8%, as did Transocena Sedco Forex
(
RIG |
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rose in the session.
Lexmark International Group
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LXK |
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moved higher 2.7%, even after an Arizona group filed a lawsuit against the
printer maker on allegations that the firm engaged in false and misleading
advertisements.
Christopher & Banks
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CHBS |
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shares moved up 16.3% after the company reported a 13% increase for August
same-store sales.
Individual stocks slipping lower were
General Cable Corp
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BGC |
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provider lowered 2001 earnings expectations.
Retailers were big losers in the
trading session as the companies began reporting same-store sales for August.
Gap Inc.
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GPS |
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ANF |
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17.4%.
ST Microelectronics
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STM |
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12.0%.
Software maker Manhattan Associates
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MANH |
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sank 21.3%.