Daily Commentary from SIR Highlights the Following Stocks: IBM, Wal-Mart, Intel, Dell, AT&T.

Business Editors

CINCINNATI--(BUSINESS WIRE)--Nov. 10, 2003

This daily report contains a brief commentary on the day's most notable activity and a table listing the most active calls and puts for the day. The Midday Options Update is published every day at SchaeffersResearch.com . For additional information about this report or to have it delivered to you via email everyday click on the following link: http://www.schaeffersresearch.com/addinfo .

Today's Daily Commentary focuses on: IBM (NYSE:IBM), Wal-Mart (NYSE:WMT), Intel (Nasdaq:INTC), Dell (Nasdaq:DELL), AT&T (NYSE:T).

The market continued to crumble today as sellers overwhelmed the few buyers brave enough to venture forward. The lack of economic news has left traders scrambling for that one scrap of news that would give them a sense of direction. In an attempt to fill the void, analysts have stepped up with their reassurances for a handful of equities. Blue chips have been particularly busy. IBM (NYSE:IBM) is benefiting from a positive article in a major weekly financial magazine while Wal-Mart Stores (NYSE:WMT) is hovering close to breakeven after reporting that November same-store sales are on track to met its goal of three to five-percent growth. Meanwhile, Intel (Nasdaq:INTC) was upgraded from "neutral" to "overweight" on strong laptop demand and expectation for a stronger-than-anticipated fourth and first quarters for the chip industry.

Speaking of analyst ratings, Morgan Stanley was upgraded from "market perform" to "outperform" and Kohl's was downgraded from "outperform" to "in line." Dell (Nasdaq:DELL) was reiterated as an "outperform" on expectation for in line or better third-quarter results and outlook. The firm is slated to enter the earnings confessional on Thursday. Applied Materials was also reiterated as a "buy" on expectations that growth will accelerate in the first half of 2004.

At 1:41 p.m. eastern time, the Dow Jones Industrial Average (DJIA - 9773.2) is down 0.37 percent and the S&P 500 Index (SPX - 1049.70) is lower by 0.33 percent. The Nasdaq Composite (COMP - 1957.4) is down 0.67 percent. At 1:43 p.m. in the options pits, 1,189,012 calls and 919,556 puts traded for a composite put/call ratio across all five exchanges of 0.77. The CBOE put/call ratio for equity options weighed in at 0.82.

AT&T (NYSE:T) makes an appearance on our most-active calls list this afternoon, as more than 14,000 contracts have changed hands at its November 22.50 strike. This option is already the site of peak front-month call open interest with roughly 35,700 contracts in residence. This hefty open interest makes it impossible to determine if today's volume is the initiation of a new position.

Overall, options players have been skeptical of the shares. T's Schaeffer's put/call open interest ratio checks in at 0.85 and is higher than 98 percent of those taken over the past 52 weeks. Wall Street is also giving the blue chip the cold shoulder, with six of the 20 analysts following the stock rating it a "hold" and 11 rating it a "sell." This swell of pessimism isn't particularly surprising considering the equity's technical performance.

The stock has recently pulled back to test support at a 50-percent retracement level (at 18.31) of its rally from its April low of 13.45 to its September high of 23.18. In addition, the security's recent weakness has pulled its 10-week and 20-week moving averages into a bearish cross. T has also tumbled back below its 10-month trendline after being rejected by resistance at its declining 20-month moving average in September. The shares have given investors little reason to be optimistic. However, the 18.31 region could prove to be an interesting area to watch. A rebound off support here could draw the bears back to T's side.

Click the following link to see the Daily Chart of EAT since September 2003 with 10-Day and 20-Day Moving Averages:

http://www.schaeffersresearch.com/wire?ID=8821.