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Thomson I-Watch Midday Update
thomsoninvest.net
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Time 12:06 PM
Last Change %chg
DJIA 11033.7 -22.0 -0.2
Nasdaq Comp 3946.5 5.7 0.1
S&P 500 Index 1492.62 -3.5 -0.2
Russell 2000 515.99 -0.5 -0.1
PSE High Tech 1111 9.6 0.9
Semiconductor 1139.7 28.7 2.6
10 Year T-Note 57.71 -0.3 -0.6
30 Year T-Bond 56.82 -0.3 -0.4
Advance/Decline:
NYSE 0.69
NASDAQ 0.86
Volume: (millions)
NYSE 409.96
NASDAQ 723.93
#New Highs #New Lows
NYSE 51 18
NASDAQ 55 52
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Notable Market Movers:
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* On your mark, get set, go... nowhere. Stocks have traded in a
very narrow range, hovering around the unchanged level throughout the
morning. Banks and brokerages have gotten banged up, giving back
much of yesterday's gains. Drugs are weak as investors ponder the
potential regulatory ramifications of a Democratic vs. Republican
president. Most major tech issues are fractionally lower, though
Dow components Intel (INTC) and Hewlett Packard (HWP) are posting
solid gains. Volume has picked up from yesterday's pace on the
Nasdaq, while trading is more moderate on the NYSE. Breadth is
decidedly negative on both exchanges. Traders are expected to sneak
off early for one of the last vacation weekends in this
traditionally slow season.
* Institutional Money Flows:
Semiconductor stocks are higher for the sixth straight session.
Merrill Lynch pounded the table on several issues and increased
global revenue estimates on the sector. NSM has shot up $3 1/4 to
$45 5/16, ADI has picked up $4 1/8 to $96 5/8, and TXN has climbed
$2 1/2 to $70.
The automotive index is heading higher on news that financier Carl
Icahn plans to take a stake in General Motors (GM). GM has risen $3
3/8 to $68 13/16 and F has added $9/16 to $27 5/8.
There's some profit taking among oil related issues, following this
week's earlier run. The price of the September crude oil contract has
fallen $0.23, but is $0.73 below session highs. BHI has fallen $1
1/2 to $37 13/16, HAL has slid $1 7/16 to $52 5/16, CHV has dropped
$1 3/16 to $86, and TX has slipped $1 1/8 to $53 1/8.
Managed Health Care stocks are lower on news that a federal judge
must decide whether 80 million patients can pursue damages against
the managed care industry. AET has given up $1 5/8 to $56 1/4,
PHSY has fallen $1 15/16 to $54 7/8, and UNH has dropped $1 to $92.
* The International Trade deficit hit a new record in June at $30.63
billion compared to May's revised $30.31 billion. However, the
figure was below the Thomson IFR consensus forecast for a trade gap
of $31.4 billion. The increase was led by a surge in advanced
technology and auto imports goods. The record deficit is
attributable to the strong dollar and large foreign investment
inflows.
* In subdued trading, the 30-year Bond has added 5/32 to 107 26/32,
showing little reaction to the trade deficit report. Investors are
largely awaiting the outcome of the Fed meeting. The focal point in
today's session is the currency market, with the Dollar Index posting
gains against the European countries. A stronger US dollar makes
dollar denominated assets, such as bonds, more attractive to foreign
investors.
* IPO Update:
Peco II (PIII) has soared $150 5/8 to $25 5/8.
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The following is a review of the 2 most recent I-Watch reports issued
this morning.
MO -- Cigarettes -- Consumer Goods
18-Aug-00 12:16:54 Investors are trying to catch their breath after
Phillip Morris' 20% run over the last week. The stock has been one
of the top performers of late, with a price change versus market
index of 116 for the week, (a reading over 100 indicates that the
stock has outperformed the market). Today, MO is down $1 3/8 at $32
7/16 as buyers step back and allow the profit takers to control the
board. It is encouraging to see that volume has tempered
considerably, with 5 million shares crossed compared to the 10-day
average daily volume of 11 millions. The reduced volume is an
encouraging sign, as it supports the premise that institutions are
taking a break from buying, rather than increasing their selling.
Additionally, MO continues to receive institutional support, which
has helped create a near- term floor around $32 1/2. In the I-Watch
pre-trade market, brokers have steadily bid for shares, downwardly
revising their super buy messages as they look to get stock at
progressively cheaper prices. Brokers are posting super sell
messages as well, keeping the stock under pressure. Institutional
traders are driving today's session, with 78% of the trades related
to trades of 10k shares or more, excluding the opening block of 1
million shares. In the options arena, MO Options Watch, the August
$32 1/2 put, which allows holders to sell shares at $32 1/2, is the
most active. Volume stands at 1,048 contracts, while open interest
is just 538. The August $32 1/2 call is also very active, with a
volume of 1,144 versus an open interest of 2,329. This gives holders
the right, but not the obligation, to buy shares at $32 1/2.
KEG -- Oil & Gas-Drill -- Basic Materials
18-Aug-00 11:50:00 Key Energy Services has slipped $1/8 to $9 after
surging $3/4, or 9% in yesterday's session. Early Thursday, Dain
Rauscher Wessels optimistically gave expectations for KEG to
announce an upside in its FY00 4Q net income, slated for release
next Monday, August 21. The analyst advised investors to buy shares
aggressively ahead of the announcement, sending shares flying. Today,
volume has tapered considerably, as a few traders book profits on
yesterday's gains. Not even 500k shares have traded today, while
volume hit over 3 million shares on Thursday. A few brokers have
posted super sell messages on I-Watch's pre- trade charts as
institutions cash in on yesterday's pop. These institutions would
rather take the "sure thing" and book profits now than face the
uncertainty of a possible surge again on Monday. Big Money investors
continue to build their positions though today, as shown on the I-
Watch pre-trade chart. Institutional brokers have posted over 7
million shares in super buy messages-much of the volume is likely
due to brokers reiterating that they remain in the market for stock.
Today's buyers are a little more price conscious, which explains the
heightened action on I-Watch, and are also less speculative in
nature. At 11:30, 31k shares traded for $9, or the best ask,
suggesting that a buyer initiated the trade. The picture is a little
mixed in the I-Watch post-trade market. Brokers have claimed 130k
shares as buy trades and 230k shares as sell transactions. |
