This Sector Showed Some Strength Today

Stocks fell
on quadruple witching Friday with all eyes on the Pakistan-Afghanistan border as

US and Pakistani forces continue to clash with al Qaeda. This was the second
straight down week for the market, with the Dow losing 0.5%, the S&P falling
0.97%, and the Nasdaq sliding 2.2%.

Oil hit a new 13-year high on concerns over summer
gasoline supplies.
Many companies have raised
estimates this week, including Masco
(
MAS |
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PowerRating)
, Stanley Works
(
SWK |
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,
Fortune Brands
(
FO |
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and FedEx
(
FDX |
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. The February
Semiconductor book-to-bill ratio was 1.14, below consensus.

The dollar traded lower against
the euro once again after reports of bomb threat to Washington DC schools.

Adobe Systems
(
ADBE |
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PowerRating)

rose 10% after reporting earnings that more than doubled at $123 million with
revenue rising 43% to $423 million. The company also raised annual growth target
to 15% with earnings at $1.43 a share.

Marathon Oil
(
MRO |
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News |
PowerRating)

announced a deal to purchase a 38% stake in Ashland
(
ASH |
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PowerRating)
for $2.93
billion. MRO would own Ashland’s the entire US refining, transportation and
marketing operations. Ashland would also pay $94 million to make its business
more compatible with Marathon’s.

Dow
-109.26

10186.52
S&P 500

-12.54

1109.78
Nasdaq
-21.97

1940.47

The day’s leading sector was
Gold

(
XAU.X |
Quote |
Chart |
News |
PowerRating)
+0.33%.

Weak today were Semis
(
SOX.X |
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Chart |
News |
PowerRating)

-3.60%, Oil Services
(
OSX.X |
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Chart |
News |
PowerRating)
-2.28%, Hardware
(
HWI.X |
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Chart |
News |
PowerRating)

-2.00%, and Disk Drives
(
DDX.X |
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Chart |
News |
PowerRating)
-1.96%

10-year Notes were -40 at
117 040

The dollar
was +0.46 at 88.16

Gold was +0.85 at 411.99

Crude oil was +0.26 at
37.62

Volume was
1,436,803,000 on
the NYSE, and
1,653,691,000 on the Nasdaq.

Market breadth was negative.

NYSE Issues
Advancing 1250 Up Vol
340
Declining 2002 Down Vol
1073
Ratio
1.60

3.15
Nasdaq
Advancing 1208 Up Vol
401
Declining 1890 Down Vol
1222
Ratio
1.56

3.04

Stocks in the news:

Solectron
(
SLR |
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News |
PowerRating)
posted a narrower
loss of $68 million on revenue of $2.89 billion. The 2 penny loss was in line
with estimates but analysts were disappointed with lower gross margin of 4.5%

Tektronix
(
TEK |
Quote |
Chart |
News |
PowerRating)
reported
third-quarter net loss of $43.6 million vs the $2 million net-loss the same
period last year with revenue up at $243.5 million.

Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating)
recalled half a million bottles of
Dasani water sold in Britain after detecting a higher-than-permitted level of
the chemical bromate.

Nike
(
NKE |
Quote |
Chart |
News |
PowerRating)
posted
earnings of $200.3 million, beating estimates by a penny with revenue up 21% at
$2.9 billion.


bricew@tradingmarkets.com