Three Numbers Worth Pondering…
Stocks opened lower Thursday as fear
of the weakening dollar and more earnings warnings weighed on the markets.
The markets received three pieces of positive
economic news before the session opened, good CPI numbers, better-than-expected
jobless claims, and better-than-expected housing starts. After trading lower
throughout the morning session, the markets managed to close off the lows.
Thanks to the power of three.
It should be noted that Thursday’s CPI
numbers combined with the deceleration in energy prices all point to easing of
inflationary pressure. This gives the Federal Reserve Board the leeway to be
accommodating to the economy by cutting rates, even if the dollar continues to
weaken. So overall, very positive.
Breadth for the markets were mixed.
NYSE advancers led decliners 1651 to 1425. While on the Nasdaq the
decliners led advancers 1571 to 1541.
The CBOE Volatility Index
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closed higher 0.2% as it is becoming oversold. The Nasdaq 100 Volatility Index
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The broader markets closed higher for
the session. The Nasdaq Composite slipped past the 1900 level in the session but
regained some footing as it closed up 11.46% at 1930.35. The Dow Jones Industrials
closed higher 0.4%.
Sectors which showed some gains in the
session were the Forest and Paper Index
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The Semiconductor Index
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did a 180 closing higher 1.7%.
The Transportation Index
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moved up 1.1%.
Looking at a chart of the Gold and
Silver Index
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2 1/2 month W-shaped bottom. The index closed higher 0.5%.
On the downside was the Oil Services
Index
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The Securities Broker Dealer Index
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was down by 1.3% with the help of Morgan Stanley Dean Witter
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Chemical Index
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200-day moving average.
Stock gaining in the session were
retailer Too Inc
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upgraded the company to Strong Buy from Buy.
Automotive services company Pep Boys
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shares shot higher 4.9% on Q2 earnings of 24 cents a share vs. 7 cents for
the same period a year ago.
Also moving was Krispy Kreme Doughnuts
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On the Nasdaq Gart Sports
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shares climbed 25.1%.
Hi Tech Pharmcal
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19.3%.
Losing ground in the session was China
Mobile
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profits of $1.67 billion falling short of forecasts.
Energy company Enron
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continued its descent down, losing 8.4% after the company’s president and CEO
resigned.
Mcdata
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in light of a class action law suit brought against the company citing violation
of securities laws. Riverstone Networks
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shares tumbled 13.8%, while ONI Systems
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8.3% getting caught in the Ciena
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