Waiting Game

123jump.com Staff
30 Nov, -0001
New York City

Market traded with no conviction during the entire day. Tech stocks Nortel and Brocade disappointed market in a day when mixed corporate earnings results were released. Market is now wating for Fed action tomorrow. Qwest finally accepted, the NO, fourth time, from MCI.

In an uneventful trading, market closed in anticipation of positive news from the Fed. A day when there was lack of news, lack of investor interest, and lack of trading volume, market drifted for much of the day in the negative territory.

Market continued trading direction from Friday on falling oil prices in Europe and strengthening Yen in Japan gave positive start to the market.

The falling energy prices on the NY Mercantile Exchange failed to ignite enough buying interest in the equity markets. The market continued to digest mixed earnings reports issued throughout the day.

Buyers stepped in the oil market and in the afternoon as traders digested the statement from OPEC. OPEC said that it has raised the output by 2 million to 29.7 million barrel, the current production level stands at 25-year high. Several analysts and traders worried that OPEC no longer has any production flexibility left to generate more crude. In the end, oil closed higher by $1.20 at $50.92 per barrel.

Humana, Parker Drilling, and Martin Marietta deliver better than expected earnings but several tech companies gave cautious guidance. Brocade warned that it will miss the 2nd quarter guidance and lowered the revenue guidance for the second quarter.

MCI found the higher bid from Verizon suitable and snubbed the offer from Qwest. Qwest's quest for MCI is finally over.

In Other news

Mexican stocks rallied on the strength of positive earnings news.

Brazilian stocks closed mixed on corporate earnings shortfall from Tele Norte and investors waited for the next Fed move.

Earnings Headlines

Accredo Health reported 3Q profit of 40 cents vs. 43 cents a year ago.
Humana reported sharply higher profit for 1Q 67 cents vs. 41 cents a year ago.

Nortel, Canadian telecom equipment maker reported 75% decline in 4Q profit from 12 cents a year ago to 3 cents on 20% decline in revenue.

Martin Marietta Material reported 1Q profit of 15 cents vs. loss of 14 cents a year ago.


Indexes closed as follows.

S&P - 0.46%
Nasdaq - 0.36%
Dow - 0.58%