Major Indexes End Mixed In Flat Trade
BY NANCY GONDO
INVESTOR'S BUSINESS DAILY
Stocks closed mixed Thursday in a seesaw session that produced no clear industry leadership.
The Nasdaq started down, turned positive by midday, retreated into the red, then clawed back for a 0.1% gain. Volume was slightly higher in the third day of an attempted rally. Overall trading has been running consistently higher at more than 2 billion shares every day this year.
While the market appears to have found support above its 200-day average, it's still too early to tell if the tide has turned. A big gain on heavy turnover Friday or sometime next week could be a welcome sign of institutions' conviction in the market.
NYSE volume ran slightly lower Thursday. The S&P 500 traced a pattern similar to the Nasdaq, edging up less than a point at session's end. Small-cap stocks showed slightly more strength, as the S&P 600 index rose 0.2%.
The Dow, pressured by Caterpillar, (CAT) stayed underwater throughout the session. The blue chip index shed 0.3%. Caterpillar sank 5% after reporting lower-than-expected fourth-quarter profit.
Leading stocks, both on the upside and downside, were a mixed bag. Industry groups with the biggest gains included telecom gear makers, ship transporters, a handful of Internets, steel makers and aerospace/defense.
Strong earning results continued to drive some leaders.
Digital River (DRIV) gapped up and soared 8% on five times normal turnover. The provider of e-commerce outsourcing services closed above its 50-day average for the first time in more than three weeks.
Websense (WBSN) powered 7% higher to an all-time high on quadruple usual trade. The Internet-usage software maker's gain matched its Wednesday increase, which came on the heels of higher-than-expected fourth-quarter profit.
Other stocks making big moves or rising to new highs included oil and gas field services provider Cal Dive International, (CDIS) restaurant operator Panera Bread (PNRA) and regional bank Texas Capital Bancshares. (TCBI)
Leading stocks falling on heavy volume represented a wide range of sectors, too.
Landstar System (LSTR) crashed 13% to a three-month low, gapping below its 50-day on its biggest turnover in well over a year. The trucker beat fourth-quarter profit forecasts by 3 cents a share. But it said it expects 22 to 26 cents in the first quarter. Analysts are looking for 26 cents.
Even prior to the news, a few warning signs were cropping up on Landstar's daily chart. Since mid-December, the stock was marking new highs on lower-than-average trade, as well as lower highs and lower lows.
Its Accumulation/Distribution briefly dropped to a D earlier in the month, even as held above its 50-day.
Verisign, (VRSN) which was trending below its 50-day line, gapped down and lost 3.82 to 25.46.
Biosite (BSTE) gapped below its 50-day in the heaviest volume since April.
