12:00 ET Dow -96, Nasdaq -73, S&P -13.48: [BRIEFING.COM] The major averages sold of on the open and have traded in negative territory throughout the first half of the day. Investors received additional hints of continued economic weakness which is contributing to the sell pressure in today's activity. Specifically, Sun Microsystems' (SUNW -11.6%) current quarter earnings warning has raised questions regarding the timing of a ramp in IT spending. The company's warning was deep with SUNW management indicating it would be "just barely above break even on a GAAP basis" for the quarter. On the topline, SUNW expects to come in 8% to 12% short versus prior expectations... Contributing to the broad-based Nasdaq sell pressure are two morning calls out of Morgan Stanley. The firm has downgraded Nortel (NT), JDS Uniphase (JDSU), Tellabs (TLAB), and Sycamore (SCMR) citing concerns that capital spending for optics may not ramp again until the third quarter of 2002. Separately, Morgan Stanley has cut estimates on a number of key names in the semiconductor group citing weak demand, inventory drawdowns, and pricing pressures for most of the reductions. Specifically, fiscal year 2001 estimates for Texas Instruments (TXN) go to $0.28 EPS from $0.35 EPS, fiscal year 2001 estimates for Broadcom (BRCM) drop to a loss of $0.25 per share from a profit of $0.05 per share and Morgan Stanley also cut estimates on National Semiconductor (NSM) and Rambus (RMBS). DJTA -0.6%... DJUA +0.2%... SOX -5.3%... XOI -0.4%... BTK -2.5%... Nasdaq 100 -4.0%... S&P Midcap 400 -1.5%... Russell 2000 -1.2%... NYSE Adv/Dec 1085/1715... Nasdaq Adv/Dec 883/2543.
11:30 ET Dow -117, Nasdaq -77, S&P -15.47: [BRIEFING.COM] The markets are demonstrating genuine weakness at this point in the day. Poor sentiment on the Nasdaq has spilled over to blue chips as the Dow is now working its way towards 10,900. Market internals are very poor on the NYSE with decline volume outpacing advance volume by a 3 to 1 margin. Yet the picture on the Nasdaq is much worse, and indicative of severe sell pressure as decline volume leads advance volume by a massive 13 to 1 margin. This is a technically significant level of sell pressure potentially indicative of a near term shift in sentiment. DJTA -0.8%... DJUA +0.4%... SOX -5.5%... XOI -0.5%... BTK -2.5%... Nasdaq 100 -4.4%... S&P Midcap 400 -1.5%... Russell 2000 -1.2%... NYSE Adv/Dec 1066/1701... Nasdaq Adv/Dec 849/2502.
11:00 ET Dow -75, Nasdaq -65, S&P -11.20: [BRIEFING.COM] The Dow is extending its losses and has cleared some room under 11,000. In light of today's equity weakness, the price activity in gold is interesting as well. The June contract on gold is down 2.90 points (-1.1%) to $272.20 today. This intraday drop is notable as it represents a break below the $275 level that had triggered many investors' concerns over inflation. Today's relative gold weakness is supportive of the notion that investors are once again revisiting fears of a broader and more protracted economic slowdown. Weakness in the commodity is leading gold-related equities to exhibit weakness as well. The XAU is down 1.4% on an intraday basis. Additionally, weakness in the currency market, specifically the euro/yen cross, also suggests the markets have recognized weakness beyond the cyclicality of IT spending. The broader markets continue to look weak though financials and drugs are experiencing some buy interest. DJTA -0.4%... DJUA +0.4%... SOX -4.6%... XOI -0.4%... BTK -1.5%... Nasdaq 100 -3.6%... S&P Midcap 400 -1.1%... Russell 2000 -0.9%... NYSE Adv/Dec 1091/1546... Nasdaq Adv/Dec 898/2258.
10:30 ET Dow -47, Nasdaq -55, S&P -8.84: [BRIEFING.COM] Still lower across the board with the Dow just breaking under the key 11,000 level. Not surprisingly, the other major averages are working towards the day's worst levels in sympathy. The 11,000 level represents important psychological and technical support and market reaction here will be watched closely. It's worth noting, however, that an intraday break of support carries much less weight from a technical perspective than a close under this support level. DJTA -0.2%... DJUA +0.7%... SOX -3.3%... XOI -0.2%... BTK +0.1%... Nasdaq 100 -2.0%... S&P Midcap 400 -0.6%... Russell 2000 -0.5%... NYSE Adv/Dec 1133/1329... Nasdaq Adv/Dec 879/2061. |
