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Fecho USA - Dow -120.17 at 9036.04, Nasdaq -31.77 at 1715.69

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Fecho USA - Dow -120.17 at 9036.04, Nasdaq -31.77 at 1715.69

por Figas » 11/7/2003 10:29

Dow -120.17 at 9036.04, Nasdaq -31.77 at 1715.69, S&P -13.54 at 988.67:
As of: Jul 10 2003 4:25PM ET
A discouraging economic report and earnings release threw cold water on the market's rally this week as sellers unloaded positions across the board... Yahoo's (YHOO 32.56 -2.73) in-line Q2 (June) report and FY03 (Dec) guidance met a cold reception as investors concluded that the company's solid results were already reflected in the stock's price... Such a reaction has been characteristic of the June quarter earnings season thus far given that the basis of the market's double-digit run has been expectations of stronger top-and-bottom-line growth... Companies that failed to significantly exceed consensus estimates have consequently been punished with sharp price pullbacks... Another factor that brought valuation concerns back to the forefront was the disappointing jobless claims data for the week of July 5... Initial claims rose for the second week in a row - by 5K to 439K (consensus of 420K) - and represented the 21st consecutive week of claims above the 400K mark - a level consistent with payroll declines... As a result of the disappointing news for the labor market, along with the fall-out from YHOO's report, sellers took the market lower and booked profits in many of the rally's strongest groups... Technology, biotech, and homebuilding were the most noticeable laggards, while auto and retail fell significantly as well... The latter lost ground due to a batch of mixed June same store sale results... Companies with asbestos liabilities also registered sharp losses in response to news that the Senate Judiciary Committee failed to reach a compromise on a bill that would create a trust fund for asbestos litigation... The only area of the market that managed upside were the soft drink shares... PepsiCo (PEP 46.95 +2.40) turned in a strong Q2 (report) and issued in-line FY03 (Dec) guidance and helped keep the beverage stocks above the unchanged mark...
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