Time For Pause?
The action Thursday was constructive
as the markets closed higher in the midst of some positive comments from Intel’s
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saying the company will see a second-half pick up in the industry.
The markets moved up quickly in the
morning session only to fade in the afternoon. The Nasdaq Composite gained
fractionally 0.9% and the Dow Jones Industrials eked up 0.3%.
Breadth for the market was positive.
NYSE advancers outpaced decliners 1762 to 1296. Internals for the Nasdaq
Composite were the pretty much flat, giving advancers the edge 1576 to 1546.
On a short-term basis, the VIX is
showing a potential short-term top for the markets, as the markets have become
overbought over the last few trading sessions. On August 1 we had a CVR III sell
signal and today it appears we have a CVR I sell signal setting up this evening.
Sectors showing strength today were the
Semiconductor Index
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PowerRating) which edged higher 3.1%. The sector is a
little heavy as it has had a nice run up in the last six trading session and appears to be overbought.
The Chemical Index
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leapt 1.3%. On a short-term basis, the index has been trading within a tight
range which has found support at the 50-day average.
The Securities Broker Dealer Index
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lows and appears to be hitting some resistance at the 50-day average.
Laggards for the day were the Airline
Index
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PowerRating) which slipped 1.0%.
The Insurance Index
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fared no better losing 1.0% also.
Also closing lower was the
Biotechnology Index
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The Forest and Paper Index
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closed up fractionally 0.5%. The Index is edging up the right side of its multi-week base.
Stocks moving up in the session were
Computer Sciences
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PowerRating), which edged up 10.7% after the stock was
upgraded by DB Alex Brown to Buy from Market Outperform.
American Tower
(
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on 10.0% after announcing a Q2 loss of 54 cents a share in line with analysts’
expectations.
Amphenol
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tacking on 3.36 points on the electronic cable maker’s earnings of 53 cents a share,
in line with analysts’ expectations according to a poll taken by Thomson
Financial/First Call.
ACT Manufacturing
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points and closed higher 36.8% as short sellers rushed to cover their positions.
Among Individual stocks losing was sunglass
retailer Oakley
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PowerRating), shedding 36.9% on the company’s announcement that the
company slashed its sales and earnings forecasts for 2001.
American Financial Group
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shares got hammered as the stock lost 22.7%.
Dollar General
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Business insurer CNA Financial
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closed lower 10.9% after it posted a huge Q2 loss which totaled $1.76 billion
due to unexpected charges to pay liability claims.
Davita
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its scheduled earnings announcement.
Descartes Systems
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the session down 28.4% after the company said it will be reporting loss for Q2
and expects revenues to be lower.
Matrixone
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being downgraded by USB Piper Jaffray from Strong Buy to Buy.
Pharmaceutical company Praecis
Pharmaceuticals
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Neutral from Buy Speculative.
Strayer Education
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fell 13.5% after reporting Q2 numbers which met analysts’ expectations The
company reported earnings of 42 cents a share. The company also reaffirmed Q3
numbers, but put full-year earnings below analysts’ expectations.