A positive outlook from GE and strong housing data sent stocks higher on Tuesday.
The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 3 to 185, and the Nasdaq climbed 17 to 2004. The S&P 500 rose 8 to 1142, and the Dow gained 106 to 9998. Volume rose to 1.33 billion shares on the NYSE, and 1.85 billion on the Nasdaq. Advancers led 19 to 11 on the NYSE, and 21 to 15 on the Nasdaq.
After the close, Micron missed estimates, Motorola
warned, 3Com
beat estimates, Red Hat
matched estimates, Tibco
topped estimates, and TriQuint
warned.
During the day, GE gave investors a preview of what 2002 earnings might bring: a 4-to-6 cent gain from goodwill accounting changes that will go into effect next year. Companies may soon rediscover GAAP accounting.
Priceline rose on a marketing deal with AOL
.
eBay fell on the resignation of COO Brian Swette.
Solectron plunged on an earnings warning.
Citrix rose on an alliance with Microsoft
.
Sonus soared on news of the company’s entry into China, and Siebel
surged on positive analyst comments.
Bomb detection equipment maker InVision got hammered for the second straight day on concern about the FAA’s plans for equipping airports.
Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.
There are signs of a potential top in the major indexes here. The Nasdaq (first chart) formed a very nice doji star today. A gap down and a red candlestick tomorrow would create an evening star, a highly reliable reversal signal. 1970 is critical support for tomorrow, and 2010 is first resistance. The Dow (second chart) may be forming a head-and-shoulders top over the last four weeks or so. The 10,000 level should be tough resistance (10,015 was today’s high). If it can clear that with any force, the index could run to 10,150. Support is 9900 and 9800, and critical support is about 9730. The S&P 500 (third chart) is forming a potential broadening top. Support is 1135 and 1125, and critical support is just under 1120. Resistance is 1145-1148 and then 1155.
Special report: For a free introduction to technical chart patterns and an overview of last year’s action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.
