After dropping slightly lower just after the market open, the AMEX Biotechnology Index (BTK - 305.43) then mustered the strength to rally to a new all-time high of 306.95. The index has been consolidating sideways below the 307 level for the past 90 minutes of trading. The index's intraday low today was at the site of its ascending 10-day moving average. If the BTK continues to show strength through the end of the session, it will mark both a bullish day for the index as well as a third consecutive close above the 300 mark. <
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Nike (NKE - 41-9/16) shares have not had a champion year, falling nearly 40 percent from their all-time high of 66-15/16 reached on May 24. Since early November, the equity had been trading sideways in a range between the 44 and 48 levels. On Monday, NKE breached the lower tier of this range and has subsequently tumbled, sloughing off more than five percent since last Friday's close. Yesterday and today, the stock has seen above-average volume in anticipation of its second-quarter earnings report, which is expected to be released tomorrow. In September, the company reported its first-quarter earnings and topped analysts' estimates by four cents per share. For the second quarter, analysts are expecting NKE to earn 34 cents, a 41-percent increase over last year's figures. In mid-afternoon activity, NKE is trading up 3.4 percent.
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Luxury goods company Gucci (GUC - 111-1/8) is up 12-13/16 today on a reinstatement by a major brokerage firm to a "strong buy" rating. This is a dramatic move into new all-time high territory for a typically sleepy niche retailer. The stock does not trade heavy volume but today's volume of 273,000 has exceeded yesterday's volume with two hours remaining in the trading session.<
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The CBOE Internet Index (.INX - 747.02) is rallying higher after a near-perfect test of its 10-day moving average earlier this morning. Incidently, this test of the 10-day also corresponded approximately with the former April high in the index.
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This morning, toy-maker Hasbro (HAS - 18-1/2) signed a three-year licensing pact with Go2Net (GNET) to develop a video game website. In the agreement, GNET will receive payment of $7.5 million from HAS for the initial licensing of the site. Additionally, HAS plans to invest $60 million in the site over the course of next year. The site, Games.com, will be launched in about six months and will feature support for about 50 popular computer and video games. This news has failed to benefit HAS, which made a new annual low earlier today at 17-5/8. The equity is currently trading more than four percent lower. <
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