Close Dow +1.63 at 10,593.11, Nasdaq -6.29 at 2,033.36, S&P +1.93 at 1,151.03: [BRIEFING.COM] Judging by the market's closing totals, today's session was rather uneventful... While such an assumption would more often than not be misleading, it certainly sums up today's proceedings... To be exact, the market spent the entirety of the session chopping around without much of a trend as stocks' underlying bullish fundamentals were juxtaposed with valuation concerns, leaving participants hesitant to make a firm commitment to the market one way or another... Tellingly, volume totals were moderate at best with decliners outpacing advancers and down volume leading up volume by only a fractional margin... Putting aside today's uninspiring trade, which was largely a continuation of the trend seen through most of February, Briefing.com maintains its longer-term moderately bullish view of the market and thinks investors should exercise conservative investment techniques, but maintain exposure to the stock market... With the major averages ending the day near their respective session highs, the bulk of the sectors closed in positive territory, although significant leadership to the upside was difficult to come by... Laggards of note included the networking, semiconductor, metal mining, transportation, raw materials, and construction sectors... Separately, this morning's ISM Services report checked in at 60.8, below the consensus of 63.4, but well above the expansionary 50-point mark... The report's impact on the market was limited, though, due to its short history, dating back to only 1997... Elsewhere, the bond market was little changed, with the 10-year note closing down 3/32, bringing its yield up to 4.05%... NYSE Adv/Dec 1584/1678... Nasdaq Adv/Dec 1546/1596.
- 15:21 ET Treasury Market Summary : Treasuries sold off sharply this morning, pushing yields on the 10-year as high as 4.102% mid-day on a strong dollar and positive outlook on Friday's employment data. Momentum fell off mid-day, however, pulling yields back down to relatively unchanged as the ISM Services and Beige Book releases provided little fuel to continue the sell-off, while positions continue to unwind in front of Friday's release. Tomorrow's ECB meeting (1:45 AM ET) could spark a sizable move in Eurozone treasuries, as a rate cut is still an outside consideration. A mid-day rumor that the respected Medley Advisors had issued a report saying the Fed was trying to gently let the market know rates would climb sooner rather than later gave the market a brief bid. The news was quickly discounted when the wording boiled down to the same old, same old, basically saying the Fed would remain on hold for months. Fed fund futures are pricing in an 85% for an August hike. 10-years are currently -02/32nds; yielding 4.052%, 2-years are currently unch; yielding 1.721%, 5-years are currently -01/32nds; yielding 3.034%, 30-years are currently -02/32nds; yielding 4.905%.
- 14:08 ET Beige Book : The Beige Book has been released, offering no market motivating news, it notes expanded economic activity, a more noticeable rise in commodity prices (but not consumer prices), strengthened manufacturing and stronger retail sales in a number of regions. Employment was seen as 'growing slowly'. No surprises as the Philadelphia Fed prepared the report to be used at the March 16 FOMC meeting.
- 11:37 ET INTC: Wedbush previews Mid-Qtr Update 28.94 -0.66: Wedbush Morgan believes that Intel will not change its guidance on mid quarter update tomorrow, merely narrowing the rev. range from the current $7.9-$8.5 bln. Analyst checks with a number of IC suppliers to notebook manufacturers suggest that the inventory correction during Jan04 is largely over. According to the firm, the "low ball" estimates of $8.09 billion in sales and $0.26 in EPS have already been discounted. This is a rare case when merely guiding to consensus estimate of $8.3 billion in sales and $0.28 in EPS will rally the stock. Based on firms checks at the Spring IDF and with channel partners and the Intel technology and manufacturing briefing (2/26), the firm is quite confident about the prospects for the co at least holding share in its x86 core business, and gaining share in its communications business in 2004/2005, as well as enjoying higher gross margin in 2005 than 2000.
- 10:53 ET Floor Talk: CCMP Chatter 44.62 -1.28: Rumor surfacing from trading floors that co's relationship with Intel may be in jeopardy (see 10:40 comment). However, after checking around on this, we've found that this rumor has been in the market before, and thus is considered "old" by the sell-side... For what its worth, Intel accounted for 15% of co's 2003 revenues.