Market Outlook
Enviado: 10/7/2003 17:28Dow -119, Nasdaq -31, S&P -14.87:
As of: Jul 10 2003 12:00PM ET
Sellers have taken a substantial chunk out of this week's rally in stocks as disappointing earnings reports and economic data have provided ample reason for profit-taking activity... Initial claims for the week of July 5 rose 5K to 439K (consensus of 420K) - the highest level in over a month - and brought the 4-week average 1K higher to 427K... Further confirmation of weakness in the labor market was delivered by the 87K surge in continuing claims that resulted in the highest reading in over 20 years... Another factor that has driven the market progressively lower has been Yahoo!'s (YHOO 32.66 -2.63) in-line Q2 (June) report and Q3 (Sept) guidance... Analysts had expected the internet name to show upside in either instance, and YHOO's failure to do so has elicited a sharp pullback in the name and technology sector... The group, along with the broader market, has rallied over the past 4 months, in part, to expectations of stronger corporate profit growth, and companies that have not demonstrated a significant improvement in earnings or revenues have been subjected to sharp declines... As such, technology - along with other momentum groups like financial, biotech, and retail - has paced the morning's broad-based retreat... The latter group has been pressured following a strong of fairly mixed June same store sales results... Elsewhere, Europe finished the day with losses spanning 1.2-3.5%... The euro's decline against the dollar, which was fueled by the ECB's decision to leave interest rates unchanged at 2.0% , has supported forecasts of slower economic growth in the European Union...
As of: Jul 10 2003 12:00PM ET
Sellers have taken a substantial chunk out of this week's rally in stocks as disappointing earnings reports and economic data have provided ample reason for profit-taking activity... Initial claims for the week of July 5 rose 5K to 439K (consensus of 420K) - the highest level in over a month - and brought the 4-week average 1K higher to 427K... Further confirmation of weakness in the labor market was delivered by the 87K surge in continuing claims that resulted in the highest reading in over 20 years... Another factor that has driven the market progressively lower has been Yahoo!'s (YHOO 32.66 -2.63) in-line Q2 (June) report and Q3 (Sept) guidance... Analysts had expected the internet name to show upside in either instance, and YHOO's failure to do so has elicited a sharp pullback in the name and technology sector... The group, along with the broader market, has rallied over the past 4 months, in part, to expectations of stronger corporate profit growth, and companies that have not demonstrated a significant improvement in earnings or revenues have been subjected to sharp declines... As such, technology - along with other momentum groups like financial, biotech, and retail - has paced the morning's broad-based retreat... The latter group has been pressured following a strong of fairly mixed June same store sales results... Elsewhere, Europe finished the day with losses spanning 1.2-3.5%... The euro's decline against the dollar, which was fueled by the ECB's decision to leave interest rates unchanged at 2.0% , has supported forecasts of slower economic growth in the European Union...