From Briefing.com: Updated: 14-Mar-03 - General Commentary - So is this the beginning of the much anticipated war rally? Will the dollar extends its recovery? Does the chip industry's strong gain (8%) in the face of downgrades to AMAT, KLAC & NVLS, and an earnings warning from CYMI, signal that this influential group has finally bottomed? To say that the Nasdaq's 61 point, 4.8%, gain sparked more questions than answers is an understatement.
We've seen enough big one to two day rallies over the past couple of years to know that it's premature to suggest that this week's rebound effort is the start of something substantial. Nevertheless, we were encouraged by the volume and breadth stats. There were more shares traded on Thursday than in any other session this year. Meanwhile, number of issues advancing thumped those declining and up volume trounced down volume by nearly a 12-to-1 margin. This is the type of buying conviction that has been lacking during all the little rallies so far this year. Now we just need to see some follow through buying.
With scope of yesterday's gain catching many investors by surprise, Briefing.com wouldn't be surprised to see indices extend advance over the next several sessions. However, lingering uncertainties over the Iraqi crisis, a sluggish economy and the beginning of earnings warnings season are all good reasons for investors to play it close to the vest in Friday's action. If indices merely hold on to vast majority of Thursday's advance, sector/market will be in good position to build on momentum of last couple of sessions.
Initial resistance for the tech heavy Nasdaq is at 1354 (200-day moving average)... Though index has briefly penetrated its 200-day moving average on a couple of occasions over the past few months, it has had a hard time holding above this ceiling.... Secondary resistance is in the 1400-1420 area... Nasdaq needs to close above this area in order to alter the bearish technical tone.
On a final note, those groups we profiled as relative strength leaders - chips, wireless, Internet services and software - paced Thursday's big up move. Look for these industries to continue providing leadership over the short-term, with telecom/networking equipment playing catch up if the bullish tone holds over the intermediate-term.
Robert Walberg, Briefing.com
3:48PM Silicon Labs recieving positive commentary from Wachovia (SLAB) 28.40 +2.41: Wachovia mentioning SLAB favorably in light of its pending product introductions and its current quarter believed to be "tracking in line."
3:22PM Hewlett-Packard issues statement on Q1 cash flow error (HPQ) 15.22 -0.35: -- Update -- "As part of our normal controls process in preparation for our official 10-Q filing, we discovered an accounting classification error. We obviously regret this error and the confusion caused by a reported cash flow from operations in Q1 of $647 million in our official 10-Q filing versus the $791 million we reported in our preliminary cash flow statement... The important takeaway for investors from both our earnings call and yesterday's 10-Q filing is that our gross cash position of $13.2 billion is strong and unchanged."
11:43AM Microsemi (MSCC) 9.76 +0.83: Adams Harkness upgrades Mkt Perform to BUY. Target $12. Due to strength in military and medical components segments.
08:31 ET Needham downgrades select semi equipment names Needham downgrades AMAT, NVLS, and KLAC to Hold from Buy, saying checks indicate that industry fundamentals may soften further, resulting in potentially flat to down orders for calendar Q2 and Q3. Firm also downgrades CYMI to Buy from Strong Buy following last night's announcement of lower than expected orders and margins.
7:08AM Gateway highlighted in WSJ article (GTW) 2.10: The Wall Street Journal has a "Heard on the Street" article on Gateway and its drop in stock price to its current levels. The article emphasizes the significance of the co trading at two thirds its cash on the balance sheet totaling $1.07 bln. Gateway's stance is described as optimistic given its recent memo sent to employees, which sees "better days ahead". While some money managers interviewed believe the co will continue to face an uphill battle for growth given its competitors, the article also highlights investors seeing a "turnaround" ahead. Money managers believe its current restructuring plan and robust cash on the balance sheet gives the co. "breathing room" and the possibility of more upside.
6:42AM Koninklijke Philips to cut semiconductor division (PHG) 14.26: The Wall Street Journal reports Philips Electronics intends to cut 1,600 jobs from its semiconductor group in the U.S. and Europe. In addition, the co will be closing factories in San Antonio and Albuquerque due to overcapacity and lackluster demand for its chips.
finance.yahoo.com
finance.yahoo.com^SOXX+ALTR+AMAT+AMD+BRCM+CYMI+GTW+HPQ+INTC+KLAC+LLTC+LSCC+LSI+MOT+MU+MSCC+MXIM+NSM+NVLS+PHG+SLAB+TER+TXN+XLNX+^IXIC+^SPX+^NDX+^VIX+^VXN+^STI.N+SMH&d=t |
