Why Markets Are Marching
News that the Northern
Alliance had taken Kabul
lifted stocks today. The Nasdaq was in rally
mode until Cisco
(
CSCO |
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PowerRating) CEO John Chambers announced “two to eight
quarters of slow growth.” The news sent the Nasdaq into retreat for
about an hour, but it staged a convincing rally into the close.
The Dow rose 195.96 to 9750.33, up 2%.
The Nasdaq rose 51.65 to 1891.78, up 2.81% — and
up 33% since the Sept. 21 lows.
The S&P rose 20.70 to 1139.03, up 1.85%.
Strong sectors were internet
(
$DOT.X |
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PowerRating), up
5.72%, airlines
(
$XAL.X |
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PowerRating), up 4.89%, biotech
(
$BTK.X |
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PowerRating), up 5.18%,
securities brokers
(
$XBD.X |
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PowerRating), up 3.21%, and semiconductors
(
$SOX.X |
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PowerRating),
up 4.23%.
Weak sectors were gold
(
$XAU.X |
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PowerRating), down
2.23%, and pharmaceuticals
(
$DRG.X |
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PowerRating), up .38%
Chain store sales rose slightly last week.
WalMart
(
WMT |
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PowerRating) reported an 8% gain in Q3 profits. The stock closed at 58,
down .55. At Home Depot
(
HD |
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to close at 44. J.C Penney’s
(
JCP |
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PowerRating) turnaround efforts seem to be proving
fruitful, as the company generated a $31 million profit, compared with a $30
million loss a year ago. JCP gained 1.50 to 25.25.
Fiber optic cable company Corning
(
GLW |
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PowerRating)
announced at a telecom conference that it sees a turnaround in business in the
second half of 2002. GLW closed at 8.05, up .35.
Airlines rallied on news that yesterday’s crash
probably was not the result of terrorism. AMR Corp.
(
AMR |
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PowerRating) rose .52 to 17.01.
UAL Corp.
(
UAL |
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PowerRating) was up .66 to 10.99, and Northwest Airlines
(
NWAC |
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PowerRating)
climbed .48 to 13.21.The major carriers today also asked for an extension of
their deferral of taxes that was granted as part of the aid package.
PDI, Inc.
(
PDII |
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PowerRating) (formerly known as
Professional Detailing) reported a Q3 loss of $29.5 million, or $1.24 per share,
after taking a charge to cover a cancelled contract with GlaxoSmith Kline
(
GSK |
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PowerRating).
PDI shares were clobbered 34%, down 10.65 to 18.35.
Watson Pharmaceuticals Inc.
(
WPI |
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PowerRating) reported a
wider-than-expected quarterly loss and cut profit projections. Shares fell as
much as 38% in heavy trading. The company reported a $58 million loss, blaming
it on increased competition, acquisitions costs, and inventory expenses. Shares
were hammered down 18.61 to 28.54.
Defense companies continue their weakness, with
General Dynamics
(
GD |
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PowerRating) losing 3.07 to 79.25, Lockheed Martin
(
LMT |
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PowerRating)
dropping 1.93 to 45.47, and Northrup Grumman
(
NOC |
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PowerRating) slipping 4.47 to 92.39.
Health care company Advisory Board
(
ABCO |
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PowerRating)
offered IPO shares at $19, and shares rose to a premium, closing at 24.25, up
5.25. Another IPO today, Fisher & Paykel
(
FPHC |
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PowerRating), debuted at $18, and
climbed to 22.95. The company, based in New Zealand, makes respiratory care
products. After 380 IPOS last year, there have been only 70 in 2001. Since
October 4, however, we’ve seen a flurry of issues, all of which have gone to
immediate premiums.