09:45 ET Dow -14, Nasdaq +2, S&P -0.12: [BRIEFING.COM] As expected, the cash market has begun the session on a relatively mixed note... Chip stocks have provided a measure of support as they have started the day with a resilient posture despite the Broadcom (BRCM +0.63) revenue warning and the anxiousness ahead of Intel's (INTC +0.46) mid-quarter update... Dow is posting negligible losses, but Philip Morris (MO -1.81) is a notable laggard after being hit with a $3 bln jury verdict in the case of a California smoker... SOX +1.8%... NYSE Adv/Dec 1011/1129... Nasdaq Adv/Dec 1086/1365.
09:10 ET: [BRIEFING.COM] ot much improvment in the futures trade, and thus, expectations for a mixed to modestly negative start remain intact... Presently, the S&P futures, at 1270, are 1 point below fair value while the Nasdaq Pre-Market Indicator is down 10 points... Retailers are expected to be a lowlight today as there have been a host of discouraging same-store sales reports from the likes of Gap (GPS 31.39), American Eagle Outfitters (AEOS 38.50), Federated (FD 44.90), and Pacific Sunwear (PSUN 22.2)... Chip stocks will remain a focus, too, as traders anticipate what they are likely to hear from Intel (INTC ) on its mid-quarter update... Ahead of that report, the Semiconductor Industry Association has said that it is projecting 20.5% growth in 2002 (revised up from 10%) and 25% growth in 2003... The upward revision for next year should be a supportive factor in the view that a bottom is near and that better times are not too far away.
08:50 ET: [BRIEFING.COM] Cash market poised to start the day on a mixed to slightly negative note as the S&P futures, at 1271, are in line with fair value while the Nasdaq Pre-Market Indicator is down 10 points... Lack of bullish enthusiasm attributed to some anxiety ahead of Intel's (INTC 29.82) mid-quarter update after the close and a batch of negative corporate news that includes a Broadcom (BRCM 35.57) revenue warning, a Pacific Sunwear (PSUN 22.27) earnings warning, generally disappointing same-store sales reports from the retail sector, and a $3 bln jury verdict being levied against Philip Morris (MO 50)... Separately, Initial claims rose 13K to 432K in the week of June 2, pulling the 4-wk moving avg. to 414K-- the highest since August 1992 and a trend that shows more evidence of the rapid loosening in the labor market.
08:15 ET: [BRIEFING.COM] Not much enthusiasm in the early-going as the S&P futures, at 1272, remain 1 point above fair value while the Nasdaq 100 futures, at 1900, are 6 points below fair value... Subsequently, cash market is currently expected to start the day on a mixed note.
07:50 ET: [BRIEFING.COM] S&P futures, at 1272, are 1 point above fair value while the Nasdaq 100 futures, at 1902, are 4 points below fair value... Traders anxiously awaiting Intel's (INTC 29.82) mid-quarter update after the close... Not helping early tone are downgrades of Corning (GLW 19.52) and Gillette (G 28), the $3 bln verdict against Philip Morris (MO 50), a Pacific Sunwear (PSUN 22.27) earnings warning, and a Broadcom (BRCM 35.57) revenue warning.
07:20 ET: [BRIEFING.COM] This morning's fair value figures -- S&P 500 fair value: 1271; closed 3 pts above fair value. Nasdaq 100 fair value: 1966; closed 2 pts above fair value. Current indications: S&P 500 futures are -1.4, or 1.6 pts above fair value. Nasdaq 100 is -8, or 6 below fair value... Early tone slightly negative following BRCM earnings warning and ahead of Intel mid-qtr update this evening. Helping to offset weakness is upward revision to chip sector sales growth outlook by the SIA.
06:17 ET: [BRIEFING.COM] S&P futures trading at 1273, 2.0 points over fair value, Nasdaq 100 futures trading at 1903, 3.0 points below fair value. The 30-year bond is down 9 ticks at 5.667%. The dollar is weaker against the yen, but firmer against the euro.
06:16 ET: FTSE +0.26%, DAX -0.21%: [BRIEFING.COM] European stocks mostly lower. Another round of earnings’ concerns and a fifth consecutive monthly jump in German unemployment help to dampen hopes that things may be turning around. Hays, Gemplus and Solvay all warn, while concerns about an Intel warning later today also weighs. Tobacco stocks hit by yesterday $3 bln verdict against Philip Morris.
06:15 ET Nikkei +0.78%, Hang Seng +0.94%: [BRIEFING.COM] Asian stocks mostly higher. Japan higher with technology outperforming on the back of an unexpected 6.3% jump in April machinery orders. Gains largely a function of short-covering however. Taiwan hit by concerns surrounding the government’s ability to sell a 5% stake in Chunghwa Telecom. Korea boosted by chipmaker outperformance stemming from a rise in semiconductor prices. Hong Kong up on bargain hunting in blue chip names.
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Close Dow -105.60 at 11070.24, Nasdaq -15.92 at 2217.74, S&P -13.54 at 1270.03: [BRIEFING.COM] The Dow took a relatively good hit today which contributed to weakness across the major averages. By day's end, the blue chip index had lost 105 points due in part to earnings concerns surrounding two of its components. Specifically, both JP Morgan (JPM -3.4%) and Hewlett-Packard (HWP -4.5%) issued cautious remarks on earnings which contributed to the today's negative bias... Of note, today's comments from HWP may have broader implications for the technology sector. In an intraday press release, the company cautioned it sees the slowdown in IT spending spreading beyond the U.S. and Europe. Specifically, HWP indicated its May sales in both the consumer and enterprise markets were light across all regions. Soft IT spending here in the U.S. is a familiar issue for the markets -- and more recently rumblings of a slowdown in Europe have begun to surface as well. Yet today's news from HWP takes the issue one step further and incorporates potential softness across all regions... Somewhat ironically, Sun Microsystems (SUNW +3.5%) demonstrated strength today on the back of positive comments from Goldman Sachs. The move was interesting in light of SUNW's comments last week which suggested Europe was becoming more of a business issue than previously anticipated. Regardless, Goldman was out today stating its channel checks indicate demand for SUNW's products is beginning to show signs of stabilization here in the U.S... In addition to JPM's cautious remarks, Bank One (ONE -0.2%) warned its second quarter earnings will come in equal to or slightly above its first quarter net of 58 cents per share. This is roughly 8% shy of the current mean estimate for Bank One which is 63 cents per share. The company cited credit deterioration and its decision to reduce credit exposure through voluntary loan sales as contributing to the shortfall... Volume in today's session was on the light side for both the Nasdaq and the NYSE. Technology bellwether and Dow component Intel (INTC +0.3%) holds its mid-quarter update tomorrow and many traders were satisfied to take a sideline view of today's market action. DJTA -0.7%... DJUA -2.4%... SOX -0.1%... XOI -2.6%... BTK -2.6%... Nasdaq 100 -1.0%... S&P Midcap 400 -1.1%... Russell 2000 -0.8%... NYSE Adv/Dec 1195/1879... Nasdaq Adv/Dec 1588/2174. |
