Why Some Traders Think We’re In Pullback Mode
Stocks were
down, but on lower volume today. IBM
(
IBM |
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PowerRating) and Intel
(
INTC |
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received favorable reports from analysts. JP Morgan upgraded Intel to overweight on
laptop demand and expectations for a stronger-than-expected fourth quarter while
Barron’s noted that IBM is trading at a discount. In merger news, R.R.
Donnelley & Sons
(
DNY |
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PowerRating) agreed to purchase Moore Wallace
(
MWI |
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PowerRating)
for $2.8 billion, creating the largest printing company in America.
The
failure of the Dow to hold 9800 as well as the tepid response to positive
economic news has some traders thinking the market may be pull back mode.
Several stocks sold off ahead of earnings later this week, including Dell
(
DELL |
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PowerRating),
-1.07, Applied Materials
(
AMAT |
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PowerRating), -0.84, and Inclone
(
IMCL |
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PowerRating) -2.24.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) fell 53.26 at 9756.53. The S&P 500
(
$SPX.X |
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PowerRating)
slid 6.11 to 1047.10. The Nasdaq
(
$COMPQ |
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PowerRating) lose 29.10 at 1941.64.
The day’s leading sectors were S&P Insurance Index
(
$IUX.X |
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Chart |
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PowerRating),
+0.85%, Natural Gas Index
(
$XNG.X |
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Chart |
News |
PowerRating), +0.06%. and NYSE Utility Index
(
$NNA.X |
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Chart |
News |
PowerRating),
+0.10%.
Stocks at or near 52-week highs
include Circuit City
(
CC |
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PowerRating), May Dept Stores
(
MAY |
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News |
PowerRating), and
Reebok
(
RBK |
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News |
PowerRating). Stocks at or near 52-week lows include drugs and defensive
stocks.
Weak today are
Semiconductors [SOX.X|SOX.X] -2.99%, Disk Drive
(
$DDX.X |
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PowerRating), -3.47% and
Biotech Index
(
$BTK.X |
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PowerRating), -3.20%.
No Economic news releases
today
10-year Notes were -015
at 111 030.
Gold was +2.40 at
387.10.
Crude Oil was +0.03 at
30.88.
Volume was
1,224,681,000 on
the NYSE, and 1,724,479,000 on the Nasdaq.
Market breadth was negative,
with NYSE declining issues over advancing issues by 1.99 and down over up volume
by 3.28; Nasdaq declining issues over advancing issues at 2.03, and down volume
over up volume at 2.99.
Top Dow stocks were:
IBM |IBM|IBM],
+1.69 at 89.95, SBC Comm [SBC|SBC],
+0.54 at 23.50, Du Pont
(
DD |
Quote |
Chart |
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PowerRating), +0.34 at 40.42, and AT&T [T|T],
+0.15 at 19.08,
Stocks in the news:
Adobe
(
ADBE |
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News |
PowerRating) fell
3.5% after the latest edition of Barron’s cited valuations concerns and a
downgrade from JP Morgan. The Barron’s article complained that the 40 PE
ratio is too high.
Tyson Foods
(
TSN |
Quote |
Chart |
News |
PowerRating)
rose after beating Wall Street estimates for their third quarter. Operating income
reached $308 million, up from $188 million a year ago the same period. Beef,
pork and chicken sales rose 14% to $6.57 billion.
Movie Theater operator Imax
(
IMAX |
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News |
PowerRating) fell after reporting lower-than-expected earnings. Losses
totaled $2.85 million on $21.4 million revenue. It also lowered 2004 earnings to
be in the range of 25 to 35 cents a share, down from the previous forecast of 36
cents a share.
Brice Wightman