To: Return to Sender who wrote (2308 ) 3/18/2002 9:37:17 PM From: Return to Sender Respond to From Briefing.com: Close Dow -29.48 at 10577.75, S&P -0.59 at 1165.55, Nasdaq +8.76 at 1877.06: The market opened the session on a firmly bullish note but drifted steadily lower into the afternoon before staging a minor bounce in late trade. Helping the indices in early action were comments from the Street. Merrill Lynch suggested that growth in Q1 was at a 5%-6% annual pace which would be expected to fuel a rebound in earnings. Bear Stearns indicated that semiconductor foundries TSM and UMC were both extremely bullish, and will both exceed Q2 estimates; also believes both will up their 2002 capital spending plans. Salomon Smith Barney raised their S&P 500 EPS forecast by $1.25 for both 2002 and 2003, representing a 7.5% growth rate for 2002 and a 13.3% growth rate for 2003. Unfortunately the market averages were unable to build on this run with the Dow and the S&P stymied near their respective recovery highs (Dow Jan high 10,663.83/S&P Mar high 1173.03, Jan high 1176.97) while the Nasdaq Composite proved unable to take out its 200 day simple ma at 1894. The cautious mood may have been tied to the Fed meeting tomorrow. Although no change in interest rates is anticipated, Briefing.com is expecting the Fed to turn to a neutral policy directive from the easing bias issued in each of the directives since Dec 2000. The performance of interest rate sensitive issues (homebuilders, banks) did suggest some concern over the direction of rates (not the timing). Homebuilders were also hurt by Fulcrum putting out a SELL recommendation on BZH, HOV, RYL, TOL but Salomon Smith Barney suggested that the stocks are still trading below historical P/E multiples, says it would use near-term, rate-driven dips in sentiment as buying opportunities. Oil related issued performed well as crude oil futures pushed above the $25 level for the first time since last Sep. The market did improve its posture over the last two hours but with the Fed not on tap until tomorrow afternoon, it may prove difficult for follow through buying to develop. Volume was light with market internals mixed to slightly positive. DJUA +0.8%, DOT +2.2%, Nasdaq 100 +0.7%, SOX +1%, S&P Midcap 400 +0.8%, XOI +0.6%, NYSE Adv/Dec 1770/1396, Nasdaq Adv/Dec 1943/1589finance.yahoo.com ^SOXX+^IXIC&d=tfinance.yahoo.com ^SOXX+QQQ&d=t
