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Conference calls are often impacted by market trends, geopolitical conditions, news coming from conferences and economic releases.
Sector Selectivity Not Enough (By Dr. Joe Duarte) The S&P 500 survived yet another intraday test of the 840 area; the recent bear market low. That means the bottom is holding in this market, at least on a closing basis. The major issue for investors, though, is which sectors are responsible for the index's action. A quick look shows that the energy sector, especially the integrated oil stocks, in the XOI index are doing a fair amount of heavy lifting for the S&P, while natural gas stocks (XNG) are also contributing some, and oil service stocks (OSX) are not helping as much. More interesting is the fact that the Philadelphia Semiconductor Index (SOX) made a new low on 11-18, even as the rest of the market managed to hold up, despite the intraday volatility. That means that the traditional market leaders, at least in the past two decades, the chip stocks, are now major dogs. For sector investors, it's important to keep this type of analysis at the forefront, especially when buying exchange traded mutual funds (ETFs), as they are not all created equally. One example of a fund that should be avoided for now, barring a major turnaround is the Semiconductors HOLDRS Trust (AMEX: SMH), which made a new low on 11-18. SMH, which houses the likes of Intel, Applied Materials, and other companies which were once the focus of the Nasdaq Composite continued to show weakness, a sign that these companies are starting to lose their long term sponsors, the mutual funds. To be sure, there has already been a lot of damage done to this area of the market. But there has also been very little sign that any kind of lasting bounce is coming either. How bad is it? Well, SMH is off over 50% since topping out in May. That's worse than the Nasdaq and the S&P 500 over the period, which means that even the major indexes, despite their dismal performances, are faring better. What makes this more daunting is that these are the companies that fuel the technology-driven gadget market, for things like cell phones and PCs, as well as complex industrial machinery, defense systems, and other high tech gear. The fact that investors are continuing to dump even these very beaten up shares suggests that all hope for a quick recovery in technology, barring positive surprises, such as Hewlett Packard providing a positive outlook, is being extinguished. That could mean that the final climactic bottom is near, or that worse times are ahead. No matter what, it suggests that more pain lies ahead for investors. Aside from holding lots of cash, in this market, the best way to win is to avoid potholes.
The Investrend Earnings Calendar features BJ's Wholesale Club (NYSE: BJ), expected at $0.46; Gymboree (NASDAQ: GYMB), expected at $1.03; PetSmart (NASDAQ: PETM), expected at $0.26; Tina Solar (NYSE: TSL), expected at $1.18.
The Investrend Economics Calendar lists Housing Starts & Building Permits for October (8:30 a.m.), Consumer Price Index (CPI) for October (8:30 a.m.), EIA Petroleum Status Report (10:30 a.m.), FOMC Minutes released (2 p.m.).
The Investrend Events Calendar showcases ADBE, CSCO at Dow Jones Newswires VentureWire Technology Showcase Conf; ALY, DBLE, KMP at Houston Financial Energy Forum; ATPG, EXXI, PVA, CFW, WRES at CanaccordAdams Global Energy Conf; Bank of America Securities Credit Conf; CDS at Roth Capital Partners China Comes to Vegas Conf; CHD, DPZ, CAKE, FDP, AAP at Morgan Stanley Global Consumer & Retail Conf; CHRW, VLTR, WSO, HSTX, USAK at Stephens Fall Investment Conf; Cowen - 8th Annual Global Health Care Conference; GB, ISRG, ACOR, CVCC, VAR at Lazard Freres & Co. Healthcare Conf; GR, PCP, NOC, BA, COGT, SPR at Credit Suisse Group Aerospace & Defense Conf; MOT at Intertech Image Sensors Conf; SNDK, SYMC, ICTG, AZPN, IM at UBS Global Technology & Services Conf.
The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session's trading showed 22 advancers versus 28 decliners. Advancers were led by Hewlett Packard Co (NYSE: HPQ) up 14.49%, Research In Motion Limited (NASDAQ: RIMM) up 11.86%, Yahoo! Inc. (NASDAQ: YHOO) up 8.65%. Decliners followed Xtl Biopharmaceuticals Ltd. (NASDAQ: XTLB) down 94.39%, Flextronics International Ltd. (NASDAQ: FLEX) down 10.47%, Corning Inc (NYSE: GLW) down 6.88%, Metlife Inc (NYSE: MET) down 6.79%.
Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).
Investrend Website of the Day: http://www.greenisuniversal.com
Quote of the Day: "There exists no politician in India daring enough to attempt to explain to the masses that cows can be eaten." Indira Gandhi
Today is: Flag Day in Brazil, Liberation Da in Mali, Pencil Day.
Happy Birthday: George Rogers Clark, Solomon Foot, James A. Garfield, Billy Sunday, Tommy Dorsey, Indira Gandhi, Alan Young, Roy Campanella, Larry King, Dick Cavett, Ted Turner, Calvin Klein, Robert Beltran, Ann Curry, Meg Ryan, Jodie Foster, McCaughey septuplets.
Today in History: Christopher Columbus went ashore in 1493 on San Juan Bautista (later renamed Puerto Rico). The second Canadian railway line, the Montreal and Lachine Railway, was opened in 1847. American Civil War: Union President Abraham Lincoln delivered the Gettysburg Address in 1863 at the military cemetery dedication ceremony in Gettysburg, Pennsylvania. Sammy Davis, Jr., lost his left eye in 1954 in an automobile accident in San Bernardino, California. Rocky and His Friends premiered on ABC in 1959. Ford Motor Company announced in 1959 the discontinuation of the unpopular Edsel. Apollo 12 astronauts Charles Conrad and Alan Bean landed in 1969 at Oceanus Procellarum and become the third and fourth humans to walk on the Moon. Egyptian President Anwar Sadat became in 1977 the first Arab leader to officially visit Israel. In Geneva, US President Ronald Reagan and Soviet Union leader Mikhail Gorbachev met for the first time in 1985.
[FirstAlert" was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information (http://www.investrendinformation.com). The opinions expressed in FirstAlert" do not necessarily reflect the opinions of Investrend.]
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