THE "DAILY BREAD" FOR THE MARKET

Daily Morning Insights on the Market

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MARKET SUMMARY FOR THURSDAY JANUARY 17TH. 2002

DOW INDUSTRIAL: 9850.04 = +137.77

NASDAQ: 1985.82 = +41.38

S & P 500: 1138.88 = +11.32

MOST ACTIVE STOCKS & SECTORS

The markets closed higher due to strong earnings from Apple, Compaq, Yahoo!, etc. The NASDAQ, which was up all day, had a heavy trading volume of over 1.893 billion, while the Dow had a volume of over 1.358 billion shares traded. Gainers included: ACLN Ltd, Advanced Marketing, Akamai Technologies, Alcatel SA, AOL Time Warner, APA Optics, Apple, Applied Materials, Applied Micro Circuits, AT&T Wireless, AutoByTel, Boeing & Co, Broadcom, Building Materials, Charles Schwab, Cisco Systems, Citigroup, Compaq, Computer Access, Datatrak International, Dell, Dice, Digitale Telekabel AG, Dow Chemical, EMC Corp, Ericsson, E*Trade Group, Extended Systems, Flour Corp, GE, Genesis Microchip, Handleman, IBM, Intel, Invision Technology, Iomega, Jacobs Engineering, JDS Uniphase, JP Morgan Chase & Co, Juniper Networks, Kent Financial Services, Lands End, Lifecell, Martha Stewart Living Omnimedia, Maxco, Mediware, Merrill Lynch, Micron Tech, Microsoft, Morgan Stanley Dean Witter, Motorola, Movado Group, Network Associates, Nortel Networks, Nucentrix Broadband, On Command, Oracle, Orchestream Holdings Plc, Overture Services, P&O Princess Cruises Plc, Phoenix Technologies Services, Priceline, RealNetworks, Sanmina-SCI, Sears Roebuck & Co, Pfizer, Spatialight, Sprint PCS Group, Sun Microsystems, Symantec, Texas Instruments, Transwitch, United Technologies, Xilinx, and Yahoo!

MAIN REASONS FOR ACTIVITY

• US Housing Starts declined 3% in December to $1.57 million units. Building Permits rose 4% to 1.653 million.

• The Philadelphia Fed Manufacturing Survey rose to 14.7% in January.

• The Manufacturers Alliance/MAPI Survey was unchanged in Q4 2001 to stand at 40%.

• US Jobless Claims for weekending January 12th. declined 14,000 to 384,000. The 4 week moving average declined 250 to 411,000. Visit our Federal Reserve Monetary Policy Analysis page to read more, also visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• Ford Motor Company lost 1.67% after reporting fiscal Q4 loss of $5.07 billion.

• Sears Roebuck & Co. gained 2.39% after reporting fiscal Q4 earnings that rose 12%, despite lower sales and a $163 million charge for closing 89 stores.

• GE gained 2.87% after reporting fiscal Q4 net profits that rose 9%, and expects to meet 2002 outlook.

• Compaq gained 6.31% and Apple gained 8.18% after reporting strong earnings.

• Symantec Gained 12.55% and Yahoo! gained 12.59% after reporting strong earnings yesterday.

• Citigroup gained 2.13% after reporting higher Q4 earnings as low interest rates helped its lending operations.

• United Technologies gained 7.28% after reporting earnings that beat Wall Street estimates by 2 cents a share, and reaffirmed its 2002 outlook.

• Visit our Up to the minute market charts covering commodities, derivatives, foreign exchange, futures, interest rates, and global stock markets for the closing numbers worldwide.

• Invision Technologies gained 20% after Aeroports de Paris (ADP), the operators of Paris' Charles de Gaulle and Orly International Airports ordered some of its Explosives Detection Systems for $9 million.

• Datatrak International gained 42.86% after its clinical trials Datatrak EDC™ software was selected to conduct clinical trials for 1,000 patients in 60 different sites.

• Building Materials gained 16.23% after announcing that it will beat Q4 revenue and earnings estimates.

• Carnival Cruise Lines gained 1.53% after increasing the bid for P&O Princess Cruises by 12%. P&O Princess gained, while merger partner Royal Caribbean closed lower.

• Martha Stewart Living Omnimedia gained 11.18% after the company announced that it will not yet abandon troubled K-Mart, even though its contract allows it to.

• AFTER CLOSE: Microsoft is losing in after hours trading after reporting fiscal Q2 earnings of 49 cents a share, 6 cents a share better than First Call estimates, and revenue of $7.74 billion, which also beat estimates of $7.27 billion. Microsoft lowered its Q3 revenue and full year earnings estimates, but raised Q3 earnings and full year revenue estimates.

• AFTER CLOSE: IBM is losing in after hours trading after reporting fiscal Q4 earnings of $1.33 a share, which was 1 cent a share better than First Call estimates, as sales came in at $22.8 billion, about $1 short of estimates. IBM's recently acquired Informix better well better than expected.

• AFTER CLOSE: Genesis Microchip is losing in after hours trading after reporting fiscal Q3 earnings of 42 cents a share, 8 cents a share better than Wall Street estimates, while over the year revenue more than doubled to $49.8 million. 

• AFTER CLOSE: Iomega is still gaining in after hours trading after reporting a fiscal Q4 earnings of 7 cents a share, as revenue rose to $189.9 million.

• AFTER CLOSE: Xilinx is losing in after hours trading after reporting fiscal Q3 earnings that beat First Call estimates by 3 cents a share, while revenue declined by almost half to $228.1 million over the year.

• AFTER CLOSE: Transwitch is losing in after hours trading after reporting fiscal Q4 loss of 11 cents a share, 1 cent a share less losses than First Call estimated, but revenue came in at $4.5 million.

• AFTER CLOSE: Network Associates is losing in after hours trading after reporting fiscal Q4 pro forma earnings of 23 cents a share, while revenue rose from $58.83 million last year to $259.2 million!

• AFTER CLOSE: Nortel Networks is losing in after hours trading after reporting fiscal Q4 pro forma loss of 16 cents a share on revenue of $3.4 billion, which is less than half last year's revenue of $8.2 billion.

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PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play, especially technology and Internet shares. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR WEDNESDAY JANUARY 16TH. 2002

DOW INDUSTRIAL: 9712.27 = -211.88

NASDAQ: 1944.44 = -56.47

S & P 500: 1127.56 = -18.63

MOST ACTIVE STOCKS & SECTORS

The markets closed lower due to worries about Intel's Q1 outlook and the demise of JP Morgan Chase's earnings report. The NASDAQ, which was down all day, had a heavy trading volume of over 1.909 billion, while the Dow had a volume of over 1.465 billion shares traded. Gainers included: AAron Rents, AMR Corp, Antares Pharmaceuticals, BF Enterprises, Bindview Development, Boyd Gaming, Calpine Corp, Coachmen Industries, Continental Airlines, Cypress Biosciences, Digital Telekabel AG, Dollar General Stores, Duane Reade, Eatries, Flag Financial, Glamis Gold, Goldcorp, Griffin Land & Nurseries, G Willi-Food, Impreso, Interdigit Communications, Interface, Labor Ready, Linear Technology, LML Payment Systems, Magna Entertainment, Manchester Technology, MarketWatch.Com, McMoran Exploration, Mikron Instrument Co, Miller Industries, Mirant Corp, Monaco Coach, Morgan Funshares, National RV Holdings, Nextel Communications, Odetics, Officemax, Ortec International, Plum Creek Timber, QSC AG, Raytech, Rehabcare, Rite Aid Corp, Ross Systems, SONICblue, Station Casino, and Winnebago Industries.

MAIN REASONS FOR ACTIVITY

• US Industrial Production declined only 0.1% in December, in line with expectations. Capacity Utilization declined 10 basis points (.10%) to 74.4%.

• The National Association of Home Builders (NAHB) reported that, its NAHB Housing Market Index rose 4 points to 61 in January, its highest level since November 2000. Single Family Home Sales Index rose to 64, the 6-month Outlook rose to 67, while the Traffic of Prospective Buyers rose to 50.

• The US Consumer Price Index (CPI), a good measure of consumer inflation, declined 0.2% in December. The Core CPI, which excludes the volatile energy and food sectors, rose a mere 0.1%.

• US Business Inventories declined 1.0% in November, while the Inventory-to-Sales Ratio held steady at 1.39.

• The Mortgage Bankers Association (MBA) reported that for week ending January 11th, its MBA Mortgage Applications Survey rose 1.9% to 581.7. The Purchase Index declined to 348.6, and the Refinance Index rose to 1937.6. The 30-year fixed mortgage rate declined to 6.76%.

• The Energy Information Administration (EIA) reported that for weekending January 11th, US Crude Oil inventories rose 1 million barrels, while Distillates declined 300,000 barrels.

• The 12