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Strategies & Market Trends : Mu Gamma Lambda -- Ignore unavailable to you. Want to Upgrade?

To: Augustus Gloop who wrote (2467)	7/20/2001 7:29:41 AM
From: Rich1	Respond to of 10077

The Big Picture Friday, July 20, 2001 Printer-Ready Version Stocks Salvage Gains After Strong Start Investor's Business Daily The stock market salvaged what started out as a very strong session Thursday. Bouncing back from Wednesday’s decline and bolstered by Nokia’s (NOK) better-than-expected earnings, the major averages all ran higher in heavier volume Thursday morning. The Nasdaq rallied as much as 3.1% in the first hour and a half of trading. The Dow industrials tacked on 109 points, good for a 1% gain. But the market started to slip. The Dow and the big-cap S&P 500 even turned negative for a few minutes in the afternoon. The Nasdaq saw its 63-point jump shrivel to a humble 11-point rise. A late burst of buying rescued the market. The Nasdaq finished up 1.5%. The S&P added 0.6% while the Dow trailed with a 0.4% gain. Volume exceeded Wednesday’s selling activity as advances beat declines. It was the heaviest trading on the Nasdaq in three weeks. The market’s action could have been better. But in general, it’s treating stocks with good earnings very well. That’s a major difference from other periods in the past year when the market punished good and bad news with equal vengeance. Hundreds of companies have missed earnings and/or lowered estimates. But most have come from trashed tech or weak old-economy sectors. Few leading stocks with strong fundamentals have surprised investors, who seem to get slapped by laggards every day. Taro Pharmaceutical Industries (TARO), a huge winner since last fall, continued to reward investors who sat through a recent two-week correction. The stock vaulted 6.91 to a new high of 97. The generic drug maker earned 48 cents in the second quarter, 167% higher than a year ago and 15 cents better than Wall Street estimates. Ivax (IVX), another generic drug maker, broke out of a deep, nine-month base. The stock climbed 2.15 to 40.30 on more than twice its usual volume. But a couple leading industry groups came under some selling pressure. ITT Educational Services (ESI) busted out of a 14-week base in early June and edged its way higher. On Thursday, it plummeted 5.21 to 37.50, falling below its pivot of 38.13 on 7 1/2 times normal trade. The for-profit operator of technical institutes achieved a 31% rise in second-quarter profit to 21 cents a share, a penny above views. CEO Rene Champagne cited higher total student enrollment, better margins and strong revenue per student. Still, ITT saw the heaviest trading in three months. Gaming stocks also felt the heat. International Game Technology (IGT), which plans to buy rival Anchor Gaming (SLOT), nose-dived 3.85 to 53.5 on four times usual volume. It will need to rise 7 points just to get back to its 50-day, a key support level. Anchor slid 3.6 to 51.5, just shy of its 200-day. The Commercial Services-Schools group ranks 13th among 197 groups and Leisure-Gaming 10th. Microsoft (MSFT) lowered earnings guidance after the close, which overshadowed a few positive reports from companies such as eBay (EBAY). The Nasdaq 100 slumped 2% in late trading.