Why AMAT Will Be In Focus On Wednesday

Stocks
closed red after a seesaw session in which geopolitical issues are still the
focus.

Since March 8, the Dow has dropped 5% to levels investors are finding more in
line with valuations. 

A major group of investors
including Calpers requested a meeting with Disney’s board to discuss the
company’s performance and strategy. Goldman Sachs
(
GS |
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reported record
earnings of $1.29 billion, beating estimates by $0.86. Equity sales trading
revenue hit $1.6 billion with fixed income/currency revenue at $2.1 billion.

Biogen Idec
(
BIIB |
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PowerRating)

and Elan
(
ELN |
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said they would seek European approval for their MS
treatment. Elan has risen nearly 80% since the initial early announcement of its
Phase III trial results. Lehman Brothers downgraded supermarkets
Kroger

(
KR |
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, Safeway
(
SWY |
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citing concerns on their
ability to maintain revenue and earnings numbers.

After the close, Red Hat
(
RHAT |
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PowerRating)
reported Q4 0.03 in-line, with revenues +43% year/year. Wednesday,
look for earnings from Micron
(
MU |
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PowerRating)
; consensus is (-0.07). Applied
Materials
meets with analysts tomorrow beginning at 11 AM PT.

Dow -1.11
10063.64
S&P 500
-1.49
1093.91
Nasdaq -8.10
1901.80

The day’s leading sectors were
Hardware
(
HWI |
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+ 4.08%, Gold Bugs
(
HUI.X |
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+1.36%, 
Chemicals

(
CEX.X |
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Chart |
News |
PowerRating)
+0.87% and Airlines
(
XAL.X |
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Chart |
News |
PowerRating)
+0.71%,

Weak today were Oil Services

(
OSX.X |
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News |
PowerRating)
-1.37%, Internet
(
GIN.X |
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PowerRating)
-1.02%, Biotech
(
BTK.X |
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-1.02%, and Energy
(
DXE.X |
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Chart |
News |
PowerRating)
-0.69%.

10-year Notes were +010
at 116 035

The dollar
was +0.03 at 87.84

Gold was +1.67 at 419.24

Crude oil was +0.38 at
37.43

Volume was 660,000,000 on
the NYSE, and 895,000,000 on the Nasdaq.

Market breadth is mixed.

NYSE Issues
Advancing 2117 Up Vol
809
Declining 1168 Down Vol
429
Ratio 1.81 1.88
Nasdaq
Advancing 1746 Up Vol
952
Declining 1390 Down Vol
648
Ratio 1.25 1.47

Stocks in the news:

PalmOne
(
PLMO |
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PowerRating)
posted a smaller net-loss of $9.3 million on strong sales of its
Treo 600. Revenue rose 23% to $242.5 million and Bear Stearns upgraded the stock
on the news.

Family Dollar Stores
(
FDO |
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News |
PowerRating)
posted
earnings of $81.4 million on revenue of $1.4 billion. Same-store sales rose 2.2%
with gross margins up at 33.8%.

Eastman Chemical
(
EMN |
Quote |
Chart |
News |
PowerRating)
upped its
quarterly numbers as it now expects earnings to exceed 30 cents due to better
cost cutting and more profitable businesses and products.


bricew@tradingmarkets.com