U.S. stocks dip into minus column
Enviado: 30/7/2003 17:59CBS MarketWatch
U.S. stocks dip into minus column
Wednesday July 30, 12:03 pm ET
By Julie Rannazzisi
NEW YORK (CBS.MW) -- Hurt by selling in the technology sector, U.S. stocks dipped into the minus column Wednesday as investors sifted through mostly second-tier earnings reports and awaited the plethora of crucial economic reports due out later in the week.
Bob Dickey of RBC Dain Rauscher believes the market's overall trend is positive but expects day-to-day moves to continue to be choppy, which he said is typical in the early stages of a recovery amid ongoing uncertainty among investors.
"There are not too many groups that have trends that are overly bullish or bearish. Our favored strategy is to buy those groups and stocks that have recently dipped in what are otherwise recovering trends," Dickey said.
He believes pullbacks in the energy and pharmaceutical sectors have rendered many stocks in those groups attractive but advises a more defensive stance in the financial, retail and small-cap groups.
The Dow Jones Industrial Average (CBOT^DJINews) dipped 11 points, or 0.1 percent, to 9,193 after rising as much as 32 points earlier in the session.
Caterpillar, which remained one of the blue-chip index's best performers with a 1.2 percent gain, reached a fresh 52-week high early in the day. Walt Disney also touched a new 52-week high before losing ground in recent trades.
The Nasdaq Composite (NasdaqSC^IXICNews) dropped 8 points, or 0.5 percent, to 1,722 and the Nasdaq 100 Index (NasdaqSC^NDXNews) relinquished 8 points, or 0.6 percent, to 1,266.
The Standard & Poor's 500 Index (CBOE^SPXNews) edged down 0.1 percent to 990 while the Russell 2000 Index (CBOE^RUTNews) of small-capitalization stocks eased by 0.4 percent.
Most market sectors struggled, led by airline, gold and chip stocks. Networking shares were a standout in the otherwise weak technology group, logging gains for a fourth consecutive session.
Volume totaled 533 million on the NYSE and 691 million on the Nasdaq Stock Market. The market's overall performance was sloppy, with declining issues outnumbering advancing ones by 18 to 13 on the NYSE and by 18 to 11 on the Nasdaq.
CVS, Andrx get a lift from earnings reports
Earnings reports continues to pour in, with drugstore chain CVS (NYSECVSNews) jumping 3.8 percent after reporting a second-quarter profit that narrowly topped Wall Street's expectations.
Generic drug maker Andrx (NasdaqNMADRXNews) surged almost 15 percent after posting a second-quarter profit that slightly exceeded analysts' views.
And Caremark Rx (NYSECMXNews) firmed 2.8 percent after its second-quarter profit surpassed the consensus estimate on Wall Street and after lifting its full-year earnings-per-share target.
Duke Energy (NYSEDUKNews) checked in with a second-quarter profit from operations that marginally missed analysts' forecasts, which sent shares 4.2 percent lower. Going forward, the company acknowledged that 2003 would be another challenging year due to the weak merchant energy sector and the sluggish economy. Still, the energy company said its full-year earnings are on track to meet targets.
Goodyear Tire (NYSEGTNews) reported a second-quarter loss from operations that exceeded analysts' projections due to higher raw materials costs. Shares rallied 9 percent in recent exchanges.
In analyst actions, J.P. Morgan upgraded Dow Jones (NYSEDJNews) to a "neutral" rating from an "underweight," citing improved valuation and "signs of life" in the IPO and advertising markets. Shares got a 4.4-percent lift.
Treasurys in recovery mode
Treasurys rose dramatically, halting a bruising four-day losing streak that took benchmark rates to highs not witnessed in almost a year.
In recent exchanges, the 10-year Treasury note put on a hefty 1 3/32 to yield (CBOE^TNXNews) 4.30 percent while the 30-year government bond tacked on 1 25/32 to yield (CBOE^TYXNews) 5.215 percent.
The bond market will have to absorb a record amount of new securities next week as Treasury announced plans to sell $60 billion in 3-, 5-, and 10-year notes.
The sting of higher interest rates is being felt in the mortgage market. Refinancing levels in the latest week were 50 percent below those registered only four weeks ago and the Mortgage Bankers Association said its weekly refinance index stood at its lowest level this year.
Wednesday will be a quiet day in terms of economic news, with the Federal Reserve's Beige Book report on economic conditions due out in the afternoon. The central bank's next monetary policy meeting takes place on August 12.
The week's most market-moving releases are due out on Thursday and Friday and include the advance reading on second-quarter gross domestic product, the July jobs report and a key reading o the manufacturing sector from the Institute of Supply Management.
In foreign exchange, the U.S. dollar gained additional ground against its major trading partners, rising 0.6 percent to a one-month high of 120.57 yen while the euro slid 0.7 percent to $1.1362.
U.S. stocks dip into minus column
Wednesday July 30, 12:03 pm ET
By Julie Rannazzisi
NEW YORK (CBS.MW) -- Hurt by selling in the technology sector, U.S. stocks dipped into the minus column Wednesday as investors sifted through mostly second-tier earnings reports and awaited the plethora of crucial economic reports due out later in the week.
Bob Dickey of RBC Dain Rauscher believes the market's overall trend is positive but expects day-to-day moves to continue to be choppy, which he said is typical in the early stages of a recovery amid ongoing uncertainty among investors.
"There are not too many groups that have trends that are overly bullish or bearish. Our favored strategy is to buy those groups and stocks that have recently dipped in what are otherwise recovering trends," Dickey said.
He believes pullbacks in the energy and pharmaceutical sectors have rendered many stocks in those groups attractive but advises a more defensive stance in the financial, retail and small-cap groups.
The Dow Jones Industrial Average (CBOT^DJINews) dipped 11 points, or 0.1 percent, to 9,193 after rising as much as 32 points earlier in the session.
Caterpillar, which remained one of the blue-chip index's best performers with a 1.2 percent gain, reached a fresh 52-week high early in the day. Walt Disney also touched a new 52-week high before losing ground in recent trades.
The Nasdaq Composite (NasdaqSC^IXICNews) dropped 8 points, or 0.5 percent, to 1,722 and the Nasdaq 100 Index (NasdaqSC^NDXNews) relinquished 8 points, or 0.6 percent, to 1,266.
The Standard & Poor's 500 Index (CBOE^SPXNews) edged down 0.1 percent to 990 while the Russell 2000 Index (CBOE^RUTNews) of small-capitalization stocks eased by 0.4 percent.
Most market sectors struggled, led by airline, gold and chip stocks. Networking shares were a standout in the otherwise weak technology group, logging gains for a fourth consecutive session.
Volume totaled 533 million on the NYSE and 691 million on the Nasdaq Stock Market. The market's overall performance was sloppy, with declining issues outnumbering advancing ones by 18 to 13 on the NYSE and by 18 to 11 on the Nasdaq.
CVS, Andrx get a lift from earnings reports
Earnings reports continues to pour in, with drugstore chain CVS (NYSECVSNews) jumping 3.8 percent after reporting a second-quarter profit that narrowly topped Wall Street's expectations.
Generic drug maker Andrx (NasdaqNMADRXNews) surged almost 15 percent after posting a second-quarter profit that slightly exceeded analysts' views.
And Caremark Rx (NYSECMXNews) firmed 2.8 percent after its second-quarter profit surpassed the consensus estimate on Wall Street and after lifting its full-year earnings-per-share target.
Duke Energy (NYSEDUKNews) checked in with a second-quarter profit from operations that marginally missed analysts' forecasts, which sent shares 4.2 percent lower. Going forward, the company acknowledged that 2003 would be another challenging year due to the weak merchant energy sector and the sluggish economy. Still, the energy company said its full-year earnings are on track to meet targets.
Goodyear Tire (NYSEGTNews) reported a second-quarter loss from operations that exceeded analysts' projections due to higher raw materials costs. Shares rallied 9 percent in recent exchanges.
In analyst actions, J.P. Morgan upgraded Dow Jones (NYSEDJNews) to a "neutral" rating from an "underweight," citing improved valuation and "signs of life" in the IPO and advertising markets. Shares got a 4.4-percent lift.
Treasurys in recovery mode
Treasurys rose dramatically, halting a bruising four-day losing streak that took benchmark rates to highs not witnessed in almost a year.
In recent exchanges, the 10-year Treasury note put on a hefty 1 3/32 to yield (CBOE^TNXNews) 4.30 percent while the 30-year government bond tacked on 1 25/32 to yield (CBOE^TYXNews) 5.215 percent.
The bond market will have to absorb a record amount of new securities next week as Treasury announced plans to sell $60 billion in 3-, 5-, and 10-year notes.
The sting of higher interest rates is being felt in the mortgage market. Refinancing levels in the latest week were 50 percent below those registered only four weeks ago and the Mortgage Bankers Association said its weekly refinance index stood at its lowest level this year.
Wednesday will be a quiet day in terms of economic news, with the Federal Reserve's Beige Book report on economic conditions due out in the afternoon. The central bank's next monetary policy meeting takes place on August 12.
The week's most market-moving releases are due out on Thursday and Friday and include the advance reading on second-quarter gross domestic product, the July jobs report and a key reading o the manufacturing sector from the Institute of Supply Management.
In foreign exchange, the U.S. dollar gained additional ground against its major trading partners, rising 0.6 percent to a one-month high of 120.57 yen while the euro slid 0.7 percent to $1.1362.