14:00 ET Dow +16, Nasdaq +3, S&P +1.12: [BRIEFING.COM] The markets are lacking for catalysts in the near term and today's
market action reflects this dynamic. While the bias remains somewhat higher on the day, conviction is clearly lacking in today's session. The
economic calendar is light this week which means corporate activity will disproportionately drive market direction. Yet the corporate
earnings calendar is also light which suggests mid-quarter updates and earnings warnings might be the primary market movers. Of note,
technology bellwether and Dow component Intel (INTC -1.0%) holds its mid-quarter call tomorrow which is likely to be a driver of very
near-term direction. The SOX is lower by 2.1% today ahead of tomorrow's conference call. DJTA -0.5%... DJUA +0.1%... SOX -2.1%...
XOI +1.4%... BTK +2.1%... Nasdaq 100 +0.1%... S&P Midcap 400 +0.6%... Russell 2000 +0.8%... NYSE Adv/Dec 1814/1150...
Nasdaq Adv/Dec 1948/1704.
13:30 ET Dow +27, Nasdaq +4, S&P +1.66: [BRIEFING.COM] The markets have sold off modestly but the major averages continue to
carry a positive bias. Late in Friday's session, the Nasdaq was hit by a small sell wave on the filing of Cisco Systems' (CSCO +3.6%) 10-Q
for its fiscal quarter three. An article in this morning's WSJ elaborates on the catalyst. It notes in CSCO's filing, the company believes the
tight capital spending environment "will continue for the foreseeable future." Also worth mentioning, Cisco said that despite a $2.25 billion
inventory write-off in the third quarter, the company's inventory levels remain "higher than our current sales forecasts" which could lead to
additional write-offs. Cisco's filing makes it clear that the current telecomm equipment/networking environment remains unfriendly. The
question becomes what constitutes the "foreseeable future" or put another way when will demand in these areas once again begin to ramp.
DJTA -0.3%... DJUA +0.1%... SOX -1.1%... XOI +1.5%... BTK +2.6%... Nasdaq 100 +0.1%... S&P Midcap 400 +0.7%... Russell
2000 +0.9%... NYSE Adv/Dec 1837/1128... Nasdaq Adv/Dec 1955/1643.
13:00 ET Dow +26, Nasdaq +10, S&P +2.44: [BRIEFING.COM] Still holding in positive ground now though we haven't seen an
extension of mid-day gains. Notably, the retail sector has been weak in today's session. While the catalysts for today's move aren't entirely
clear, there are a couple of points worth considering. First, the group is coming up against difficult comparisons relative to last year. When
sales in the comparable (historic) period are strong, this means business must be that much stronger in the current period for results to look
solid on a relative basis. Second, retail sales are influenced by regional and national weather conditions as well. During periods of
unfavorable weather, sales tend to drop which also has an adverse impact on relative comparisons. The two variables taken together make
for an unfavorable climate for retail issues which may be contributing to today's weakness. DJTA -0.2%... DJUA -0.1%... SOX -1.2%...
XOI +1.5%... BTK +2.2%... Nasdaq 100 +0.2%... S&P Midcap 400 +0.7%... Russell 2000 +0.9%... NYSE Adv/Dec 1824/1097...
Nasdaq Adv/Dec 1957/1589.
12:30 ET Dow +18, Nasdaq +9, S&P +2.36: [BRIEFING.COM] The Dow is currently working on a break over the psychologically
important 11,000 mark. With the blue-chip index crossing back and forth over this level, it's beginning to take on less significance from a
strictly technical perspective. This morning, the Nasdaq tried resistance at 2,175 and sold off on the initial test of that level. If the tech-heavy
index can manage to work its way towards 2,175 as the day progresses, the move may draw additional buy interest and short covering
towards the close. Despite generally negative market sentiment regarding upcoming earnings warnings and a lack of positive catalysts, the
markets don't appear to be eager to turn down at the current moment. DJTA -0.2%... DJUA -0.1%... SOX -1.2%... XOI +1.5%... BTK
+1.9%... Nasdaq 100 -0.1%... S&P Midcap 400 +0.6%... Russell 2000 +0.8%... NYSE Adv/Dec 1775/1116... Nasdaq Adv/Dec
1891/1590.
12:00 ET Dow -4, Nasdaq +1, S&P +0.21: [BRIEFING.COM] Both the Dow and the Nasdaq attempted to rally on the open but early
strength was sold into. Following the sell off, the major averages have settled in and now favor the flatline at mid-day. Market internals are
neutral on both the NYSE and the Nasdaq which fits with the overall lack of conviction in today's activity. The biotech sector has taken a
notable turn for the better more recently with the BTK now posting a 1.7% intraday gain... Positive comments from Alan Greenspan have
served to hold sell pressure in check today. Speaking at a conference in Singapore, Mr. Greenspan indicated that inflation is not a threat to
the U.S. economy. While not explicitly stated, the Chairman's comments have been taken to suggest the Fed remains open to additional
interest rate cuts. One of the critical questions investors have been facing is when the Fed's current easing cycle will end. Whether Mr.
Greenspan's remarks were intended to signal additional interest rate cuts or not, they may have been aimed at adding uncertainty as to when
these cuts will be "taken back" by subsequent rate hikes... Separately, the semiconductor sector is serving as an influential negative bias in
today's session. Cypress Semiconductor (CY +2.0%) has warned its second quarter revenues will be in the range of $175 million to $185
million with earnings expected in the range of break even to $0.02 EPS. This means CY expects to come in 8% to 13% light on the topline
as First Call consensus estimates had been for $202 million in revenues and earnings of three cents per share. Separately but in the same
general space, broadband semiconductor maker Broadcom (BRCM +1.6%) has had its estimates reduced by Goldman Sachs this morning.
Goldman is citing ongoing inventory corrections in the enterprise and cable markets as its rationale for the lowered numbers. While these two
issues each trade higher in today's session, the SOX has sold off by 1.9% on an intraday basis. DJTA -0.3%... DJUA -0.2%... SOX
-1.9%... XOI +1.4%... Nasdaq 100 -0.5%... S&P Midcap 400 +0.5%... Russell 2000 +0.6%... NYSE Adv/Dec 1710/1147... Nasdaq
Adv/Dec 1745/1637.
11:30 ET Dow -14, Nasdaq -2, S&P -0.37: [BRIEFING.COM] Equities appear to have settled in for the time being. Though the major
averages continue to trade in negative ground, the early slide off opening levels has been stemmed. Oil-related equities are notably strong in
today's session with the XOI bidding up 1.3% on an intraday basis. The strength is due in part to positive pre-announcements from Sunoco
(SUN +3.6%), Valero Energy (VLO +5.1%) and W-H Energy Services (WHES +2.4%). Investors haven't seen many upside
pre-announcements over recent months and the positive near-term outlook is driving buy interest in today's session. The June contract on
crude oil is higher by 0.9% in today's trading. DJTA -0.3%... DJUA -0.2%... SOX -2.1%... BTK +1.3%... Nasdaq 100 -0.7%... S&P
Midcap 400 +0.3%... Russell 2000 +0.4%... NYSE Adv/Dec 1619/1188... Nasdaq Adv/Dec 1667/1643. |
