Rydex Total Assets Update for Thursday, September 27th, 2001:
Regular Series:
SPX Long - NOVA 239.7 Million**BULLISH
SPX Short- URSA 259.0 Million**BULLISH Inversion
NDX Long - OTC 720.6 Million**BULLISH
NDX Short- Arktos 102.7 Million**BULLISH
XAU Precious Metals 72.7 Million
Banking 25.3 Million**BULLISH
Biotech 253.0 Million
Money Market 1.503 BILLION**BULLISH Oversold
*******************************************
Dynamic Series (200% correlation to Index)
SPX Long - TITAN 88.0 Million**BULLISH Inversion
SPX Short- TEMPEST 89.3 Million**BULLISH
NDX Long - VELOCITY 131.2 Million
NDX Short- VENTURE 106.2 Million**BULLISH
*********************************************
We got our counter-trend rally this week, much to the surprise of Bears.
9/28/2001 18:07
U.S. Stocks Rise as American Express, Honeywell, Cendant Gain
By Robert Dieterich
New York, Sept. 28 (Bloomberg) -- U.S. stocks rose for the fourth day in five, barely denting the biggest quarterly decline in the Standard & Poor's 500 Index since the market crash of 1987.
American Express Co. and Honeywell International Inc. lifted the Dow Jones Industrial Average as investors bet the attacks that destroyed the World Trade Center may depress corporate profits less than some investors expected.
Delta Air Lines Inc., American Airlines parent AMR Corp. and other shares that had the biggest drops in the days following Sept. 11 also advanced.
``Some are saying that we are going to have a really awful earnings period, but the market knows that,'' said Tobias Levkovich, an equity strategist at Salomon Smith Barney. The S&P 500 has lost 4.7 percent since the attacks.
Today, it added 22.33, or 2.2 percent, to 1040.94. Even with its 7.8 percent gain this week, the S&P 500 lost 15.8 percent this quarter for its worst performance since the fourth quarter of 1987. Only one in five stocks rose in the period.
The Nasdaq Composite Index climbed 38.09, or 2.6 percent, to 1498.80. Its 5.3 percent gain this week left the index 30 percent lower this quarter.
The Dow rose 166.14, or 1.9 percent, to 8847.56, for a 7.4 percent gain the past five days. It lost 16 percent this quarter.
Some 1.6 billion shares traded on the New York Stock Exchange, 32 percent more than the three-month average. More than three stocks rose for every one that fell on the Big Board.
Rebound Seen
Money managers may have ``raised cash in anticipation of redemptions and it looks like they're trying to put some of that back into the market,'' said Jim Luke, who manages the $175 million BB&T Large Company Growth Fund in Raleigh, North Carolina.
Assets of U.S. money-market mutual funds fell by $15.96 billion to $2.199 trillion in the week ended Wednesday, according to a report from the Investment Company Institute, the mutual fund industry's trade association. The previous week, assets invested in money funds rose by $80.15 billion.
Luke said he expects stocks to rally soon in anticipation of an economic rebound fueled by interest-rate cuts. ``We have more monetary stimulation than we would have had otherwise.''
The Federal Reserve last week cut its benchmark overnight lending rate for the eighth time this year, and many economists and investors expect another reduction Tuesday when the central bank's policymaking Federal Open Market Committee meets.
Honeywell, which makes commercial aircraft control systems, jumped $1.35 to $26.40. It's lost 26 percent over the past two weeks.
Microsoft Corp. rose $1.21 to $51.17, erasing an early 2 percent loss, after the judge in the antitrust case against the company ordered ``intensive'' settlement talks. The judge set a March hearing to consider ways of restraining the biggest software maker should the negotiations fail.
Cisco Systems Inc. advanced 94 cents to $12.18. Among other active Nasdaq stocks, Oracle Corp. rose 54 cents to $12.58 and Nextel Communications Inc. climbed 69 cents to $8.64.
Airlines, Cendant
Delta gained $1.97 to $26.33. It was among the 10 biggest decliners in the S&P 500 in the first five days of trading after the World Trade Center was destroyed by hijacked aircraft.
AMR advanced $1.24 to $19.14 after Salomon Smith Barney analyst Brian Harris said airlines will rally next year as reductions in capacity and a ``steady revenue recovery'' boosts profits. Harris raised his rating on AMR to ``buy'' from ``neutral.''
Cendant Corp, the franchiser of Days Inn hotels and Avis car rental businesses, rose $1.36, or 12 percent, to $12.80. The company said third-quarter earnings, excluding a charge, will be 32 cents versus the 33 cents analysts had forecast. Fourth-quarter profit will be as much as a third below estimates.
``People were expecting worse,'' said Scott Vergin, who helps manage almost $6 billion at Lutheran Brotherhood Inc. in Minneapolis. Last week's declines in airlines and other travel- related stocks was overdone, he said. Vergin said he bought some airline stocks after they fell.
Cendant shares have lost 28 percent since the attacks.
Other companies joined the company in providing assessments of how the terrorist attack might affect profits.
Bank of New York, UPS
Bank of New York Co., which matches buyers and sellers for about half of U.S. government bond transactions, said displacement of employees from offices near the World Trade Center and related disruptions will cut about $125 million off third-quarter profit. Its shares rose $1.68 to $35.
United Parcel Service Inc. rose $2.26 to $51.98 after saying its third-quarter profit may be as much as 18 percent less than forecast. The biggest package delivery company said its delivery volume fell more than 10 percent in the week after the attack.
Eaton Corp., the second-largest maker of hydraulic equipment, said it expects operating profit for the rest of this year and next year to miss analysts' estimates because of slowing demand for industrial equipment following the terrorist attacks. Eaton fell 11 cents to $59.21
Praxair Inc., which supplies coatings and repair services for aircraft engines, rose 73 cents to $42, even after the company said it will cut 900 jobs and miss profit forecasts because demand from the aviation industry has declined. The shares fell 22 percent last week.
Insurers Bounce Back
While insurance companies may be liable for more than $30 billion in claims from the destruction of the trade center and related disruptions, investors have come to believe the attack will lead to companies boosting the premiums they charge.
The S&P Insurance Composite Index of 20 stocks fell almost 12 percent last week as stock trading resumed following the four-day halt caused by the attack. The index has now erased that decline. After a 2.9 percent rally today, it is up 3.1 percent since Sept. 11.
American International Group Inc. climbed $2 to $78, its fifth straight increase after falling every day last week. It is 5 percent higher than before the attack.
Berkshire Hathaway Inc. gained $250 to $70,000 and Chubb Corp. added $1.43 to $71.41.
Citigroup Inc., parent of Travelers Insurance and the biggest issuer of credit cards, rose 63 cents to $40.50 and was among the biggest contributors to the S&P 500's gains today.
Investors sold shares of companies with the biggest credit card businesses last week on concern the terrorist attacks will cause consumer spending to fall and bankruptcies to rise. This week, those stocks pared their losses.
American Express, the No. 1 provider of travel services and No. 4 U.S. issuer of credit cards, rose $1.60 to $29.06, though it is still 17 percent lower since the attack.
Bank One Corp., the No. 2 issuer of credit cards, rose 98 cents to $31.47, while MBNA Corp. advanced $1.24 to $30.29. Bank One dropped 16 percent last week, MBNA lost 20 percent, and Citigroup fell 14 percent.
Brokerage stock rallied today. Morgan Stanley Dean Witter & Co. climbed $2.04 to $46.35, Merrill Lynch & Co. rose $2.79 to $40.60 and Goldman Sachs Group Inc. jumped $2.45 to $71.35.
Calpine Corp. rallied $3.06 to $22.81 after the power producer said its expects to meet its profit outlook this quarter. Calpine dropped 7.7 percent yesterday after a rival, Exelon Corp., said its profit would fall short of expectations.
Among other power companies, Duke Energy Corp. rose $1.56 to $37.85, Dominion Resources Inc. advanced $2.45 to $59.35, and Mirant Corp. jumped $2.30 to $21.90.
The Russell 2000 Index of smaller stocks rose 11.91, or 3 percent, to 404.87. The Wilshire 5000 Total Market Index, the broadest measure of U.S. shares, rose 212.95, or 2.3 percent, to 9562.95.
Based on changes in the Wilshire, U.S. stocks have gained back $762.39 billion of the $1.38 trillion in market value lost last week.
******************
Regular Series: 100% Long NDX OTC
Dynamic Series: 100% Long SPX TITAN
Best Regards, J.T. |
