11:51 ET Gateway (GTW) 17.02 -0.45 (-2.6%): Not often is a technology company willing to admit to a price war in its industry. Not only is GTW acknowledging a margin-eroding battle for market share, company is publicizing it. Issues press release this afternoon announcing limited time program to beat the price of comparable systems offered by competitors. The title of the campaign: " PC Price War ... ? Cool." Separately, hearing that Dow Jones reporting that GTW reiterating breakeven operations for the remainder of the 1st-half and a return to profitability in the 2nd-half; sees sales climbing yr/yr in 2H.
11:39 ET Fibercore Inc. (FBCE) 5.62 +0.16 (+2.9%): Optical fiber manufacturer announces $55 mln in contracts from N. American customers to supply single-mode and multimode fiber. Product is scheduled to be shipped from 2001 through 2004.
11:37 ET Gold Sinks : The reversal of the gold rally continues; cash gold is off over $6 today to $267.60. Gold stocks being taken down: ABX -0.26, HM -0.16, NEM -0.38. Many had seen the brief spike in gold as an indication of economic recovery and an inflation threat, but it increasingly looks like yet another head-fake in a 20-year bear market for gold.
11:35 ET Bucking the Trend : Stocks that are posting gains amid above average volume include: SLXP (+5% - completes $28 mln financing), HBI (+12% - still running following recent expansion) and ROV (+0.5% - Goldman initiates coverage).
11:24 ET A.G. Edwards (AGE) 43.65 +1.55: Stock lifted by rumors of a takeover bid from Morgan Stanley (MWD), but we're hearing skepticism from trading floor sources who call this an old rumor; also hearing that Dow Jones running a headline that AGE says independence remains in the company's best interest.
11:08 ET McLeodUSA (MCLD) 5.50 -0.27 (-4.7%): -- Update -- Since company provided new guidance just a few weeks ago, ability to meet the lowered targets is not a surprise. Seems that the only new news in the MCLD press release is company's plan to reduce its workforce by 5%.
10:54 ET McLeodUSA (MCLD) 5.53 -0.24 (-4.2%): Company plans to reaffirm 2001 revenue and EBITDA guidance at today's annual shareholder meeting.
10:42 ET M.D.C. Holdings (MDC) 32.26 +0.37 (1.1%): Part of the home building sector which has benefited from the stronger than expected earnings from Toll Brothers (TOLL +5.6%). MDC held near support mentioned in a recent Sector Watch (as have LEN, CTX, KBH and PHM) and is attempting to work back above its 200 day simple ma at 32.5. The ability to bounce off support and the improving posture of the indicators (for the sector as well) raise the probability for follow through if sustained action above the moving average is seen.
10:40 ET Oracle Corp (ORCL) 15.07 -0.54: Hearing from sources that Goldman Sachs made comments on Oracle; firm discusses the possibility of a preannouncement as early as Friday or Monday, says that if a preannouncement occurs, Oracle's EPS guidance would probably drop to $0.12 from the current consensus of $0.14. Goldman notes that a shortfall might already be discounted in the share price and sees near-term downside of only 1-2 pts in the event of a warning.
10:38 ET Exxon Mobil (XOM) 88.55 +0.75 (+0.8%): Declares 2-for-1 stock split, payable July 18.
10:25 ET Market Movers : Retailers picked up on the rotation out of the technology sector: PSUN (+3.8%), AEOS (+2.5%), ROST (+2.5%), COST (+2.2%)... HD (+2.1%) also participating; company hosting annual meeting this morning... eBay (EBAY) surges off lows after CNBC guest reiterates for the xx-tenth time his affection for the stock... Short-squeeze alert: NUAN, GENE.
10:19 ET Nasdaq Composite : -- Technical -- Minor upticks but far from out of the woods. Intraday watching first support at 2125. The ability to hold above here keeps the pattern of the move positive with the deeply oversold intraday technicals also a favorable development. However, considerable work is needed on the upside just to neutralize the bias of the last few sessions. Next resistances are at 2145/2150 and 2170.
10:10 ET Tellabs (TLAB) 34.67 -2.71 (-7.2%): -- Update -- Technical -- Holds at support in the 34/33 area mentioned in the Morning Movers story with a minor bounce thereafter. Initial resistance is at 35.30 with a more important ceiling at 36/36.21 (congestion/top of today's gap). Intraday now watching support at 34.15. Failure here argues for a run back to retest/breach the early low.
10:07 ET AT&T (T) 20.88 +0.20 (+1%): IRS rules that the proposed split off of AT&T (AWE) qualifies as tax free for AT&T and its shareholders for federal income tax purposes.
10:02 ET ONI Systems (ONIS) 32.90 -1.06 (-3.1%): -- Update -- Awarded a multi-million dollar contract with Korea Telecom to connect multiple cities across Korea. ONI's products will be distributed to Korea Telecom under a reseller agreement with Huneed Technologies. |
