Message-ID: <12938995.1075845215312.JavaMail.evans@thyme> Date: Fri, 1 Jun 2001 00:52:37 -0700 (PDT) From: editorial@mail.realtimetraders.com To: editorial@realtimetraders.com Subject: Was Thursday's rebound a dead cat bounce? Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "RealTimeTraders.com" @ENRON X-To: Editorial@realtimetraders.com X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst Dear Subscriber, please note that you are receiving this email because you have opted into our FREE daily market analysis newsletter. If you would like to be removed from our list, reply to this email with remove in the subject line. Thank you! June 1st, 2001 RealTimeTraders.com offers free real-time stock alerts throughout the day. Why pay for chat rooms and stock pickers for old news? Morning Watch List This section contains 6 stocks that are expected move in 1 to 5 days. Click here for this morning's Watch List Stocks: http://www.realtimetraders.com/marketinfo/watchlist.asp Beyond The Numbers Was Thursday's rebound a dead cat bounce? Thursday morning all the major indices managed to start out on a positive note, and finished the session slightly higher. Dow Jones gained 39 points, Nasdaq Composite for its part finished the session higher by 26 points, and the broader S&P 500 index finished the session higher by 7.74 points. However, traders were quick to point out that Thursday's modest gains can be attributed to some intermediate support in the major indices and short covering. Some veteran traders call this type of bounce as a "dead cat bounce". Traders said the market as a whole is waiting on earnings pre-announcement to determine where the markets will be heading in the short-term. Thus far the overall earnings picture does not seem to be improving due to the negative comments by Goldman Sachs, USB Warburg and the downward earnings revisions by Sun Microsystems and Altera Corporation. Some Clarification on Thursday's sector analysis Thursday we received several emails regarding some confusion about Thursday's sector analysis. Thursday's sector analysis contained a sentenced that read "It is our opinion the worst in terms of earnings warning may be behind us". By this statement we were merely trying to suggest the magnitude of the earnings warnings in the second quarter might not be as severe as the first quarter. We were not trying to suggest most of the pre-announcements for the second quarter are done. Our readers may recall that some of the better known companies did not offer any guidance for the second quarter because of the economic uncertainty. In our opinion the companies had expected the earnings picture to remain cloudy. We sincerely apologize for any confusion we may have caused by Thursday's sector analysis. As always we appreciate your feedback, and request that you send us an email with suggestions on what type of new information you would like to see added to our site. Please also include on the email the type of information that is currently available on our site that may not be important to you as an investor or trader. Sector Analysis Technology may not be the only sector that might face problems It is not a great surprise to hear that consumers are starting to feel the pain from the recent technology meltdown. However, it is somewhat surprising to see restaurants express concerns about the weak economy. Thursday shares of restaurant chains came under pressure due to rising concern the economic slowdown is likely to negatively impact the restaurant industry. Names such as Wendy's International (WEN - which lost $0.75 to close at $24.65), Brinker International (EAT - which lost $2.10) and Rare Hospitality (RARE - finished the session lower by $3.78) came under considerable pressure on above average volume. Readers may want to watch this sector for the next few sessions. Should this industry's earnings fall short of estimates, it is clearly an indication that the consumer has become weary of the economic slowdown and cut back on discretionary spending. Economic Reports & Bond Markets Thursday the long bond gained almost a point and closed above the 100 mark. Friday morning the average hourly earnings, average work week, and this week's most important economic report, the monthly unemployment rate are scheduled to be released at 8:30AM. We will report the actual numbers along with the market reaction to the numbers as soon as the reports become available in our breaking news section. Market Breadth Thursday's NYSE advance/decline reading was 1822/1236 Vs. Wednesday's reading of1098/1962 Thursday's Nasdaq advance/decline reading was 2258/1591 Vs. Wednesday's reading of 1094/2765 New Highs and New Lows Thursday's NYSE new high/lows was 110/22 Vs. Wednesday's reading of 82/37 Thursday's Nasdaq new high/lows was 126/38 Vs. Wednesday's reading of 81/47 Important Market Moving News Visit our Before The Bell page -Http://www.realtimetraders.com/sp/beforethebell.asp for the most important news that may effect your portfolio. This page also provide information on stocks that are going to gap open higher/lower and the reasons if any. We also alert traders to the actively traded stocks before the bell. Upgrades / Downgrades / Coverage Initiations Click on the following link for today's upgrades.http://www.realtimetraders.com/marketinfo/g_minfo.asp?page=upgrades Click on the following link for today's downgrades.http://www.realtimetraders.com/marketinfo/g_minfo.asp?page=dngrades Click on the following link for today's new coverage initiationshttp://www.realtimetraders.com/marketinfo/g_minfo.asp?page=coverage Please remember that we will only be able to continue to offer our service FREE of charge and add other valuable content to our site if we have enough subscribers. So please pass the word around about our free services to your friends, colleagues, and family members. Also if you use any newsgroups, chat rooms or forums, we would greatly appreciate if you can post a message or two about our services. Thank you. Some of Today's Key Earnings Releases Click here for a complete list of today's earnings. http://www.realtimetraders.com/earnings/earnings.asp Company Name Expected earnings Symbol Maxwell Shoe 0.31 MAXS Piedmont Natural Gas 1.24 PNY Disclaimer All information provided in this email is for informational purposes only. RealTimeTraders.com obtains data from sources it believe to be reliable. RealTimeTraders.com nor its content providers guarantee the accuracy of the content. Although the opinions expressed here are based on sound judgement, experience, and research, no warranty is given or implied as to their true reliability. The responsibility for decisions made from information contained in this email lies solely with the individual making those decisions. RealTimeTraders.com DOES NOT offer investment advice. Consult your financial advisor for all your investment decisions. Do not rely on this publication alone to make your investment decisions. 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