Why The Market Rejected Earlier Gains

April 30, 2003
Brice Wightman

Stocks
closed in the red following the run up of the last two sessions. The
PMI, a four year low on the dollar, and less-than-upbeat comments from Greenspan
put a drag on equities. Manufacturing activity in the Chicago area contracted in
April. Fed Chairman Alan Greenspan testified before the House Financial Services
Committee that he believes “the economy is positioned to expand at a noticeably
better pace than it has during the past year.” However Chairman Greenspan
remains cautious on the timing and extent of growth.Â Â Â

In economic news, the
National Association of Purchasing Managers Index came in at 47.6 vs.
estimates of 48.9. Readings under 50 indicates contraction.Â

The 10-year U.S. Note
is +190 at 114 040.

The dollar is -0.82 at
97.38.

Gold is + 6.00 at
340.00.

Crude Oil +0.59 at 25.70

Volume was 2,529,103 on
the NYSE, and 1,597,379 on the Nasdaq.

NYSE advancing issues were over
declining issues by a ratio of 1.49, and down volume over up volume by a 1.55
ratio. Nasdaq declining issues over advancing issues are at 1.29, and down
volume over up volume is at a 1.59 ratio.

Stocks in the news:

Industrial equipment maker
Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating) is set to release its second quarter results later today. The
company also announced plans of more layoffs and cost cutting.Â

Nextel CommunicationsÂ
(
NXTL |
Quote |
Chart |
News |
PowerRating)
was downgraded to “Sell” from “Hold” from Deutsche Bank amid valuation concerns.
Â

Darden restaurants
(
DRI |
Quote |
Chart |
News |
PowerRating),
is off more than 10% as the operator of the Olive Garden and Red Lobster reduced
its full year forecast. Â

Why The Market Rejected Earlier Gains

BUY THE FEAR, SELL THE GREED

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