Stocks Soar, But Intel Warns
by Paul Shread
internetstockreport.com
October 15, 2002 - Stocks soared once again on Tuesday, but Intel threatened to undo the gains with a warning and earnings miss after the bell.
The Nasdaq soared 61 to 1281, the S&P 500 surged 39 to 881, and the Dow soared 378 to 8255. Volume soared to 1.87 billion shares on the NYSE, and 2 billion on the Nasdaq. Advancers led 24 to 8 on the NYSE, and 25 to 8 on the Nasdaq. Upside volume was 87.6% on the NYSE, and 90.5% on the Nasdaq.
After the close, Intel plunged 12%, erasing all of the day's 9% gain and then some, after missing earnings estimates and warning. Nasdaq futures traded 30 points lower. Novellus , Motorola and DoubleClick also fell on their earnings reports. RF Micro and Internet Security beat estimates, but Advent missed.
During the day, Microsoft gained 6% on positive comments from Goldman Sachs. The company reports after the bell on Thursday.
Unisys soared 32% after beating earnings estimates but coming in light on revenues.
AOL rose 7% on a SoundView upgrade, and Scientific Atlanta gained 13% on a Merrill Lynch upgrade.
Amazon and eBay were notable laggards.
Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.
The Nasdaq and Nasdaq 100 (first two charts below) could be headed for bearish island reversal or evening star/abandoned baby patterns tomorrow. A gap below 1259.87 on the Nasdaq or 941.46 on the Nasdaq 100 that does not recover those levels by the close would be a pretty reliable reversal signal. 1250, 1240 and 1220 are support on the Nasdaq, and 900 looks like the first good support on the Nasdaq 100. The Dow (third chart) broke through a lot of resistance today. 8100 and 7900 are now support, and 8400 is resistance. The S&P (fourth chart) also broke though some solid resistance. 890 is next resistance, and 840-845 should now be support. The banks (fifth chart) busted through resistance today, but are now facing some even tougher levels. In a general comment, the lack of a pullback and stronger base-building is a negative development for this rally, but we wouldn't be surprised to see another leg up after a pullback before this rally is over. |
