RECAP & STOCKS TO WATCH FOR MONDAY, 3-5-01
A warning by tech giant Oracle (ORCL) triggered another topsy-turvy session on Friday, pressuring the software, networking, Internet, and storage sectors, with the one bright spot being the equipment chip sector. Many big cap techs, including Cisco Systems (CSCO), which fell to a new 52-week low, continued their downward trend.
On Friday, the Nasdaq Composite dropped 65 points to close at 2,117. Volume was 2.37 billion shares, with advancers beating decliners by 19 to 17. Blue chips saw extreme volatility as the Dow, which was off as much as 148 points and up as much as 129 points, held on to close up 16 points to finish at 10,466. Volume on the Big Board was 1.28 billion shares with advancers beating decliners by 19 to 11.
Looking ahead this week, it’s important to remember to ignore the warnings, ignore the analyst comments, ignore the doom and gloom, ignore predictions, and to remember to focus and react upon price action only.
From a technical standpoint, the Nasdaq Composite has formed a doji candle, indicating a possible reversal. A stronger signal would be given on Monday if a 2nd doji is formed. The Nasdaq needs to break resistance at 2,300 for any type of follow-through rally, otherwise a lower high will have been put in. The Dow shows resistance at 10,700, the top of its trading range, and support at 10,300. The Semiconductor Index (SOX) completed its reversal off the bullish engulfing candle formed on Thursday, and bounced off resistance at 620.
Morgan Stanley Semiconductor and Systems Conference: The following companies are scheduled to make presentations on the first day of this 3-day conference: RMBS, SANM, PMCS, AMAT, GSPN, INTC, MOT, SLAB, KLIC, LRCX, ALTR, HWP, SUNW, and EMC.
EBay (EBAY): Company said Friday that it settled its lawsuit against Bidder's Edge, which agreed to stop listing EBay content on its site. Bidder's Edge will also pay EBay an undisclosed sum of money.
Gilead Science (GILD): Shares could get a boost after a Barron's article Saturday said the company could profit from its HIV/AIDS drug Tenofovir that's in its final stages of development. Because the drug has fast-track review status, it could be launched in the U.S. by the end of the year. |
