- Nasdaq trades above its 50-day simple moving average at 2052, inciting buying in the broader market. The tech composite's push above the technically significant level in a convincing fashion would be a bullish indicator and could incite further buying in the Nasdaq and the broader market... The semiconductor sector is spearheading the market's advance, with the SOX trading at its best levels of the day, currently up 1.3%... The group has been in-play through most of the session due to JP Mogran's downgrade of Intel (INTC 29.43 +0.23) and SIA data indicating a 27.4% increase in January sales compared to last year... Currently, there's indications that Applied Materials (AMAT 21.58 +0.33) has made some comments at the Morgan Stanley Semi Conference that are being favorably received by the market...
- 15:21 ET Bond Market Summary : Treasuries traded quietly all day, spending the early portion of the session a bit higher but then trending lower. The improved employment component of the ISM data gave the market its initial push, and some small short-term profit taking further fueled the downside. Traders are twitchy about Friday's unemployment data, as estimates run from 45K to 200K, and no one is ready to talk bigger numbers. Many feel the market is still strong; with some thinking the "big growth projections are not very convincing," and feel treasuries will regain the bid heading into Friday's release. The latter part of the day saw ten-years pinned between 3.983% and 4.007%, and are currently -05/32nds yielding 3.992%; twos are unchanged yielding 1.649%; threes are -01/32nds yielding 2.118%; fives are -03/32nds yielding 2.959%; thirties are -08/32nds yielding 4.854%.
- 09:12 ET Barron's article comments on SNDK growth prospects 25.42: Barron's article highlights comments made by Sandisk (SNDK) during its first ever analyst day. At last week's analyst gathering, SanDisk chief executive Eli Harari said that his company could have annual sales of $5 billion by 2009, if it maintains its one-third share of the flash market. The co's shares now trade for about 20 times the $1.25 per share earnings that's predicted for 2004. According to the article, if the company can leverage its operating profits on the torrid growth of flash sales, it might grow dollar profits fast enough to reclaim investors' ardor and a premium earnings multiple. What spooked investors down from November's heights has been SanDisk's prediction of continued flash price declines of 40% a year, and gross margin declines from about 34% to about 30% toward the end of 2004. However, if unit shipments continue growing at 200% per year, the company figures it can grow its gross margin dollars, even with declining prices and gross margins.
- 09:02 ET Gold Oil and Dollar Summary : The Dollar is hovering around its 2-month highs against the Euro (1.2504) as speculation of the European Central Bank (ECB) cutting interest rates continues. The ECB meets this Thursday with no immediate intentions to cut rates, but investors will be scrutinizing their comments for hints about its future policy decisions. The Dollar is relatively flat versus the Yen this morning at 108.92. Gold is slightly higher just above 400 this morning...Oil continues its rise from last week as it pushes close to a new annual high near 36.20 on concerns supplies will not meet rising demand in the coming months.
Guy Boscart,