13:12 ET New 52-Week Highs : More than 100 stocks on the NYSE and NASDAQ are making new one-year highs today. Two of them
-- Travelocity.com (TVLY 33.99 +4.04) and Expedia (EXPE 27.95 +1.94) -- are actually Internet stocks... The return of the "Blue Light
Special" has brought investors back to discount retailer Kmart (KM 10.26 +0.26). The stock is on the New High list for the second
consecutive session.
13:02 ET BEA Systems (BEAS) 40.20 -0.65: The rumors continue to swirl around BEAS; last week, the talk was that the company was
calling around to analysts and asking about their models. Today, the talk is that there will be a conference call after the close tonight with
associated speculation ranging from a warning (company is on an Apr qtr and reports May 15) to an acquisition. BEAS investor relations
says that no call is scheduled.
12:35 ET Internet Watch : Liquid Audio (LQID 2.30 -0.19) the latest Net company to announce layoffs. Company plans to reduce its
workforce by 40% as part of an effort to preserve cash.
12:34 ET Heidrick & Strg (HSII) 30.11 +4.86 (+19.2%): -- Technical -- Global executive search firm has been one of the leaders in
terms of point and percentage gain that have come amid unusually strong volume. However, has struggled with strong resistance at its 50
day simple ma (30.4)and its longer than month long trading range top (31). A breakout that is accompanied by continued solid volume
readings would initially target resistances at 32 and 33.5. Short term support is at 29.45.
12:33 ET Niles Speaks : Trading floor sources saying that Lehman analyst Dan Niles just presented at a VC conference in Pebble Beach;
he reportedly maintained his negative tone on semis, saying that an inventory overhang remains and that pricing pressure will become a bigger
issue going forward.
12:28 ET Applied Materials (AMAT) 52.65 -1.95: Hearing that SG Cowen made negative comments; said bookings were weak in the
month of March at about $100 mln vs $1 bln in March 2000 -- AMAT is on an April qtr.
12:05 ET DQE Inc (DQE) 23.68 -6.75 (-22.2%): First Union Sec. downgrades to UNDERPEFORM from Buy after company reported
Q1 earnings of $0.22 a share, well below firm's expectations of $0.72. Says company's portfolio of public and private investments has
stalled due to market weakness. Firm reduces FY01 est. to $1.30 from $3.00.
11:36 ET NVIDIA Corp (NVDA) 86.07 +2.77 (+3.3%): -- Technical -- Consolidates after early push higher falters near resistance at
86.50 . However, as long as 84.86/84.59 holds there is potential for another run at the above barrier. Penetration leaves the door open for
a retest/break of the recent recovery high at 89.01
11:30 ET Nasdaq Composite : -- Technical -- Modest rebound in semiconductor, networking and computer-hardware helped lift the
index off the low. While it is possible for further upticks to develop, limited interest thus far, short term patterns and weakening indicators
suggest watching initial resistances at 2113/15 and 2122/24 for signs that such a move may be running out of steam.
11:16 ET Travelocity.com (TVLY) 33.40 +3.45 (+11.5%): Shares of online travels agency attract interest following release of strong
earnings by competitor Expedia (EXPE 27.95 +1.94).
10:43 ET Interactive Entertainment Stocks : --Update-- Strength across the sector in response to CSFB positive comments this
morning. Firm initiated coverage of THQ Inc (THQI 41.59 +3.50), Take-Two (TTWO 14.85 +0.91), and Activision (ATVI 27.75 +0.49)
with BUY ratings. Firm believes that this industry offers growth and visibility found in few other places in today's market.
10:27 ET Reliant Res (RRI) : -- Update -- IPO surges 14% from its offering price; issue opened for trading at $34.
10:23 ET Earnings Movers : Specialty Labs (SP 34.14 +0.74) reports Q1 earnings of $0.15 a share, 3 cents above consensus, vs yr-ago
net of $0.10. Revenues rose 23% to $43.8 mln. SP is a research-driven clinical reference laboratory... Career Education (CECO 52.73
+2.38) earned $0.28 a share in Q1, 3 cents above estimates. Revenues increased 70% to $119.7 mln. CECO is a provider
of career-oriented postsecondary education.
10:07 ET NAPM Report : Reflecting the slew of layoff announcements, the employment index fell to 38.1% from 40.4%, increasing the
probability of another payroll decline in Friday's report.
10:02 ET NAPM Report : The NAPM index rose to 43.2%, a bit weaker than the consensus estimate of 44.0% and roughly flat with the
March reading of 43.1%. The prices paid index fell to 48.9% from 49.9%, which is good news on the inflation front. Not seeing much
market reaction.
10:00 ET SONICblue (SBLU) 4.86 -0.03 (-0.6%): Motorola (MOT) signs a long-term licensing agreement making ReplayTV a primary
provider of core DVR software for the creation of Motorola's new personal television platform. ReplayTV's DVR technology will be
integrated into Motorola's digital cable set-top. Last month, ReplayTV agreed to be acquired by SONICblue.
09:55 ET IPO Pricing : Provider of electricity and energy services, Reliant Resources (RRI), prices 52 mln share initial public offering at
$30 per share, well above the initial range of $14-$19. Goldman Sachs and CSFB serving as lead managers of the deal... Issue to begin
trading this morning.
09:52 ET Nasdaq Composite : -- Technical -- Only minor downticks thus far; intraday watching 2113 for indication of short term
direction. Failure at this minor resistance suggests a run to a new pullback low with initial support at 2095 and a secondary floor at 2082. A
breach of the latter raises the probability that the correction that has dominated off the April 20 high is still holding sway which allows for
further short term weakness.
09:44 ET Talk.com (TALK) 2.25 +0.19 (+9.2%): Early run on news that provider of telecom services will continue its relationship with
AOL on a non-exclusive basis through June 2003. TALK will focus on providing bundled telecom services instead of a "long distance only"
business. (volume 242K; intraday high $2.35).
09:38 ET Sector Watch : Mixed to slightly weaker tone develops amid relatively modest trade. Early market losers include:
computer-hardware (-1%), semiconductor (-1.5%), biotech (-1%), drug (-0.6%), software (-0.5%) and retail (-0.4%). On the rise in early
dealings are the telecom, natural gas, utility and disk drive sectors.
09:38 ET Netegrity (NETE) 34.59 -5.40 (-13.5%): UBS Warburg lowering estimates after company beat estimates for Q1 but offered
lowered guidance guidance through Q3. Firm reducing estimates to the lower end of management's 2001 range. FY01 goes to $0.42 from
$0.48 and FY02 cut to $0.78 from $0.94.
09:25 ET PeopleSoft (PSFT) 37.04: Pacific Crest initiates with a BUY rating; cites dominant position in human resource management
systems, new product cycle, strong balance sheet and improving margins. Target price is $45.
09:21 ET Opening Indications : S&P futures go out at -3, or 3 pts below fair value. Nasdaq 100 pre-market indicator is also -3. After
sinking earlier on Merrill's number cuts on Dell, the market now looks set to open roughly flat.
09:19 ET Network Appliance (NTAP) 22.75: ABN AMRO initiates coverage with a HOLD rating. Believe the company has several
technology advantages which drive its current competitive advantage. Nevertheless, the current technology slowdown and increasing
competition could pressure the company's future performance.
09:17 ET Emulex (EMLX) 35.91: ABN AMRO initiates with a HOLD rating. Says EMLX is the leading Host Bus Adaptor (HBA)
vendor, and the company's competitive advantage is solid, based on its industry leading firmware and memory buffer technology. However,
do not believe the competitive dynamics of the HBA market justify the company's current multiple of 55x calendar 2002 earnings estimate.
09:16 ET Micron Electronics (MUEI) 1.91: Company agrees to sell its PC business to Gores Technology Group. Under the terms of the
agreement, Gores will assume assets and liabilities of Micron Electronics' PC business. As previously announced, MUEI is exiting the PC
business to focus exclusively on Web hosting.
09:15 ET Brocade Comms (BRCD) 37.99: -- Update -- ABN AMRO initiates coverage with a BUY rating and $50 price target.
Brocade has a sustainable competitive advantage based on its Fabric OS and latest ASIC technology.
09:13 ET Metalink Ltd (MTLK) 9.40: Banc of America Sec downgrades to MKT PERFORM from Buy based on cloudy outlook.
Cuts EPS for June qtr from $0.04 to $0.01 on lower revenue base of $6.9 mln. Earnings estimate for FY01 goes from $0.27 to $0.07.
09:03 ET EMC Corp (EMC) 39.60: -- Update -- ABN AMRO upgrades to BUY from Add, raises 2002 EPS estimate from $1.04 to
$1.08, and revenues from $13.8 bln to $14 bln. Becoming increasingly confident that the storage spending slowdown is reaching a bottom.
Do not expect a full recovery in spending before the end of the year, but believe the worst news is already factored into EMC's valuation.
09:01 ET Interactive Entertainment Stocks : CSFB initiates coverage of Interactive Entertainment stocks THQ Inc (THQI),
Take-Two (TTWO), and Activision (ATVI) with BUY ratings. Believes that sector is beginning what will be the largest and most significant
growth phase in its history; e.g., a new console cycle and emergence of new business models such as online and wireless gaming.
08:55 ET SBA Comms (SBAC) 34.09: CIBC World Markets initiates coverage with a BUY rating. With a fully funded business plan
through 2002, SBAC currently has $325 mln in cash (plus $300 mln in bank financing), debt to capital of 54% and cash interest coverage of
1.3x. Price target is $43.
08:54 ET GlobeSpan (GSPN) 22: -- Update -- SG Cowen cutting estimates after company issues revised guidance; firm's 2001 estimate
cut to $0.19 from $0.46 and 2002 reduced to $0.45 from $0.81 (believes the 2002 forecast is conservative). Continues to believe that
market for DSL will show explosive growth again, likely beginning sometime in 2002.
08:53 ET American Tower (AMT) 26.80: CIBC World Markets initiates coverage with a BUY rating. Operator of the largest portfolio
in the industry, AMT is one of the best capitalized and least levered, with cash of $1.1 bln, a debt to capital ratio of 51% and cash interest
coverage of 1.2x. Price target is $42.
08:52 ET AT&T (T) 22.28: CNET is reporting that AT&T is planning to hike its broadband rates by $6/month in June. The hike would
affect roughly 1 mln customers who subscribe to @Home (ATHM) or RoadRunner services via AT&T.
08:50 ET J.C. Penney (JCP) 20.26: Bear Stearns downgrades to ATTRACTIVE from Buy after shares doubled in the past four months
and exceeded price target. New price target is $25 (up from $20).
08:46 ET Triton Energy (OIL) 25.11: Oil exploration company reports Q1 earnings of $0.64 a share, 3 cents above consensus, vs yr-ago
net of $0.43; revenues rose 94% to $143.9 mln.
08:45 ET Finisar Corp (FNSR) 14.95: FAC/Equities First Albany upgrades to STRONG BUY from Buy. Raises fiscal year (April
02) revenue estimate from $278 to $292 mln, and EPS from $0.08 to $0.10. Valuation indicates continued appreciation potential.
08:39 ET Gapping Up : MicroStrategy (MSTR) shares surge 30% in pre-market after company exceeds estimates for the quarter and
projects that it will return its core business to breakeven by Q4 of this yr... Priceline.com (PCLN) surges 29% in reaction to the Goldman
Sachs upgrade... MRV Communications (MRVC +16%) rallies in response to strong Q1 results... GlobeSpan (GSPN) bid up 6% on
better-than-expected earnings and indication from company of a deceleration in price erosion... ChipPAC (CHPC) pops 6% on Thomas
Weisel upgrade.
08:39 ET McDATA (MCDT) 27.91: FAC/Equities First Albany upgrades to STRONG BUY from Neutral. Cites market share gains at
EMC. In March qtr, McData sold approximately $2 mln of 16-port switches to EMC, and while a small amount, it was $2 mln that BRCD
did not sell, and indicates that EMC is comfortable selling 16-port switches from multiple vendors.
08:32 ET Opening Indications : S&P futures -5, or 5 pts below fair value; Nasdaq 100 pre-market indicator -15. Indications remain
negative but have regained some lost ground in the past half hour. DELL is off 0.75 on the Merrill Lynch estimate reductions, and EXDS is
down 0.65 on a CFO resignation, but not seeing many other big stories this morning.
08:29 ET Rambus (RMBS) 17: Stock under heavy selling pressure in pre-market after ebnews.com reports that a US District Court
Judge dismissed all but three of the patent infringement claims filed against Infineon Technologies AG by Rambus. According to site, Judge
ruled that Rambus failed to prove that "dozens" of patents related to SDRAM and double-data-rate SDRAM technology had been
violated... RMBS trading at $15 in pre-market.
08:28 ET ChipPAC (CHPC) 6.30: Thomas Weisel upgrades to STRONG BUY from Buy; cites improved cost structure and reduced
customer inventories. FY01 raised from ($0.27) to ($0.15), FY02 from $0.17 to $0.32.
08:25 ET McKesson HBOC (MCK) 30.84: Salomon Smith Barney upgrades to OUTPERFORM from Neutral based on renewed
confidence that the distribution business is back on track. Fiscal 2002 and 2003 EPS estimates raised by $0.02 and $0.01 to $1.35 and
$1.68, respectively.
08:24 ET Cooper Cameron (CAM) 63.06: Prudential upgrades to STRONG BUY from Accumulate following yesterday's report of
strong quarterly results and positive guidance for the full yr. Firm retains its price target of $80.
08:21 ET Aurora Biosci (ABSC) 23.20: UBS Warburg downgrades to HOLD from Buy on valuation. Vertex Pharmaceuticals (VRTX)
announced that it has agreed to buy ABSC for about $592 mln, or $24 per share.
08:16 ET Dell Computer (DELL) 26.24: -- Update -- Merrill Lynch reduces FY02 est. to $0.68 from $0.82 and FY03 to $0.90 from
$1.01. Expects next couple of qtrs to prove challenging and believes it is key that investors expand their time horizon into next year as they
think about Dell. Firm reiterates Buy rating based on company's advantaged competitive position and thrust into the enterprise... DELL
shares trading at $25.35 in pre-market.
08:09 ET Morgan Stnly DW (MWD) 62.79: First Union downgrades to BUY from Strong Buy and cuts estimates for 2001 to $3.65
from $4.00 and 2002 to $4.52 from $5.06, cites overall weak underwriting volumes in April and general market weakness over last twelve
months. First Union also cut estimates on Goldman Sachs (GS: Strong Buy), Lehman Bros (LEH: Strong Buy) and Merrill Lynch (MER:
Buy) for the same reasons.
08:07 ET Adobe Systems (ADBE) 44.92: -- Update -- Company still being impacted by economic slowdown in the U.S. and has started
to see slowdown in some European countries; notes that Asia business continues to perform well... ADBE will provide a live broadcast of its
Analyst Day meeting from its website beginning at 10ET.
08:03 ET Adobe Systems (ADBE) 44.92: Company says on track to meet its targets of 15% yr/yr revenue growth and 31% operating
profit margin for Q2.
08:02 ET Opening Indications : -- Update -- Nasdaq futures fall to 27 pts below fair value, impacted by Merrill Lynch's negative revisions
to Dell Computer (DELL) earnings estimates. Firm reduces FY02 view by 17% and FY03 cut by 11%. Of course, these revisions follow
similar estimate cuts made yesterday by Robertson Stephens. Merrill's call, however, having a more significant impact on a thinly-traded,
directionless morning.
07:54 ET Perot Systems (PER) 10.72: Reports Q1 earnings of $0.14 a share, a penny above consensus, and down 18% yr/yr; revenues
rose 7% to $294.7 mln. Projects Q2 earnings of $0.14-$0.15 (consensus $0.14) and full yr EPS of $0.62-$0.64 (consensus $0.62).
Company cut 550 positions during the qtr.
07:49 ET Opening Indications : S&P futures -6, or 6 pts below fair value; Nasdaq 100 futures -21, or 20 pts below fair value. Have seen
significant erosion in the futures over the past half hour despite a lack of significant trading catalysts.
07:48 ET priceline.com (PCLN) 4.85: -- Update -- Goldman upgrade to MKT OUTPERFORM is based on improved outlook as
management has right sized the business, improved customer service, and stabilized growth. While company still in a turnaround phase,
progress has been made that positions PCLN to better control its destiny, with Q1 potentially being its last unprofitable qtr... Firm projects
loss of $0.04 for 2001 and a profit of $0.10 in 2002.
07:40 ET Williams Comms (WCG) 4.52: Reports a Q1 loss of $0.65 a share, on a 69% increase in revenues to $276.1 mln. "Although
the current economic environment appears to be weakening, Williams Communications continues to see strong demand for bandwidth
services." Remains confident in ability to meet previous 2001 revenue guidance (excluding Winstar impact). Reduces 2002 capital
expenditure program to $3.2 bln from $3.9 bln.
07:34 ET priceline.com (PCLN) 4.85: Goldman Sachs upgrades to MKT OUTPERFORM from Mkt Perform.
07:32 ET Digital Island (ISLD) 2.47: Announces the resignation of chief financial officer Tom Thompson, who is taking time off to pursue
personal interests.
07:28 ET Citrix Systems (CTXS) 28.40: Company's Board of Directors has authorized the repurchase of up to an additional $200 mln of
Citrix common stock.
07:24 ET Opening Indications : This morning's fair value figures -- S&P 500 fair value: 1255; closed even with fair value on Monday.
Nasdaq 100 fair value: 1866; closed 1 pt above fair value on Monday. Current indications: S&P 500 futures are -2.8, or 2.8 pts below fair
value. Nasdaq 100 is +6, or 7 pts above fair value... The major news, on what has been a very quiet morning, is the 2-cents-better earnings
report of Dow component Procter & Gamble. The first round of analysts upgrades/downgrades likely to provide the first catalysts of the
day.
07:14 ET Procter & Gamble (PG) 60.05: Reports Q3 earnings of $0.71 a share, 2 cents above consensus. Revenues were $9.51 bln, flat
with yr-ago, excluding a 3% unfavorable foreign exchange impact. Company is comfortable with the range of analysts' estimates for Q4 core
earnings.
07:11 ET Nextel Comms (NXTL) 16.25: Provider of wireless communications services reports a Q1 loss of $0.56 a share, 5 cents wider
than consensus, vs a yr-ago loss of $0.45; revenues rose 48% to $1.74 bln. "While domestic subscriber growth was slightly better than
anticipated,the company incurred slightly higher customer acquisition and handset upgrade costs in the first quarter of 2001." Company to
reduce workforce by approx. 5%.
07:04 ET inSilicon (INSN) 3.06: Announces that, through a licensing agreement, Sun Microsystems (SUNW) is deploying inSilicon's USB
1.1 communications technology in Sun's Sun Ray(TM) appliance product line.
06:58 ET GlobeSpan (GSPN) 22: After the close, DSL chip maker reported Q1 net of $0.12 a share, 2 cents above consensus...
Company used conference call to reduce Q2 EPS outlook to $0.01-$0.04 (consensus $0.07), on revenues of $80-$90 mln (consensus
$101.8 mln). GSPN indicated that it believes the worst is behind it in terms of pricing as it is seeing a deceleration in price erosion... GSPN
shares traded up 2 pts in after hours.
06:46 ET Exodus Comms (EXDS) 9.59: Announces the resignation of CFO R. Marshall Case, citing personal reasons. The WSJ reports
that the company's chief operating officer Don Casey and head of marketing Beverly Brown left the company last week, although the
departures were not announced by Exodus.
06:37 ET Ariba (ARBA) 7.73: IBM Corp (IBM) announces support of Ariba products for IBM's WebSphere integration software. The
collaboration represents an expansion of the global strategic technology alliance between Ariba and IBM.
06:09 ET U.S. Markets : S&P futures trading at 1252.50, 2.5 points below fair value, Nasdaq 100 futures trading at 1862, 4.0 points
below fair value. The 30-year bond is up 5 ticks at 5.775%. The dollar is firmer against the euro, but weaker against the yen.
06:09 ET European Markets : FTSE -0.61%, DAX closed% -- European markets all closed for May Day holiday, though the UK’s
FTSE 100 Index open for business. UK stocks under decent pressure this morning following yesterday’s late-day reversal in the Dow.
Banking stocks hit the hardest on the back of dampened global rate cut expectations. US contagion still evident however, as the CIPS
manufacturing index fell to levels not seen since February of 1999.
06:08 ET Asian Markets : Nikkei +3.52%, Hang Seng closed% -- Asian stocks sharply higher with Japan back from holiday. Heavy
foreign buying interest, record approval ratings for new PM Koizumi and solid earnings all help to push the Nikkei up over 3.5% on the
session. The Nikkei closed at its highest level since December 18. Most other Asian markets, including Hong Kong, Singapore, South
Korea, the Philippines and Thailand were all closed for holiday.
01:36 ET British Telecom (BTY) 80.90: Company in talks to sell its 20% stake in Japan Telecom, together with its interest in J-Phone,
Japan Telecom's mobile phone unit, to Vodafone (VOD) for roughly $4.3 bln, reports the Financial Times. The deal, expected to be
announced within days, would boost Vodafone's stake in Japan Telecom to 45 percent from its current 25 percent and its J-Phone stake to
46 percent from 26 percent... Report comes on heels of management shake-up at BTY, as company struggles to get out from under debt
and bolster shareholder value... Should note that Gerard Bithell, a BTY spokesperson was reported as saying that "this is purely rumor and
speculation. There is nothing imminent."
01:16 ET Pulte (PHM) 46.78: Company has agreed to buy Del Webb (WBB 33.80) in a deal that would create a home-building titan,
reports the Wall Street Journal... Pulte to pay $800 mln in stock, which equates to $40.51 a share for WBB, or about a 20% premium to
Monday's close... Based on current prices, WBB shareholders to receive 0.866 PHM shares for each WBB share... PHM will also assume
$1 bln in WBB debt... Deal would help Pulte capture a strong position of the fast-growing housing market for seniors, and lift its pro-forma
revenues to $6 bln from $4.2 bln in 2000... Transaction will be accounted for as a purchase and is expected to add to Pulte's cash flow and
EPS in the first full year of operation. |
