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Out With The Old

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Stocks are weaker early this morning on the last trading day of 2001. Bonds were slightly higher in pre-market action. The yield on the 10-year note (TNX.X) fell by 0.17 to 50.90, or 5.09 percent.

Analysts Quiet

Wall Street's sell side was quiet ahead of the holiday. No analyst actions of significance were issued this morning. The only major shift in analyst opinion was seen in Imclone (NASDAQ:IMCL), which was a news-related event.

Biotech Bust

Imclone had its rating and earnings estimates reduced this morning after the FDA rejected the application of its cancer drug, Erbitux, late last Friday. The stock is a component of the Nasdaq-100, which could spread weakness to other shares in the early going. We'll keep a close watch on the broader biotech sector after this news. Shares of Imclone were lower by more than 20 percent in early trading.

Tepid Trading

Volume and conviction levels are likely to remain low ahead of the holiday. Price action may be the most volatile this morning and taper off into the afternoon as the traders who are still around head home early for the holiday.

Eric Utley
Option Investor

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