DJ MARKET TALK: IBM Not The Only Bigwig On Tap For Tonight
18 Apr 15:33
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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3:32 (Dow Jones) There's more to tonight's after-the-bell earnings lineup
than IBM. Apple (AAPL), Advanced Micro (AMD), Raytheon (RTNA), Cendant (CD),
Broadcom (BRCM), Akamai (AKAM), Altera (ALTR) and Siebel (SEBL) all set to
report. (TG)
3:17 (Dow Jones) With indications that the number of slot machines in casinos
should increase over the next year and that old machines should be replaced by
the new more frequently, Goldman Sachs analyst Steven Kent started coverage of
slot machine producer WMS Industries (WMS) with a market outperformer rating.
However, the company does have a limited product offering, he said. (DDO)
3:01 (Dow Jones) The Amex is keeping all of its options open, including a
possible IPO, when it is spun off from its parent the NASD, says Amex spokesman
Robert Rendine. But nothing is imminent. The NASD and the Amex won't sit down
until "some point next year" to decide how to proceed, says NASD spokesman
Howard Schloss. Options include an IPO, a private placement, or partnerships,
says Rendine. "We've been talking to a lot of people about a lot of different
things." (JAW)
2:46 (Dow Jones) National Association of Manufacturers economist Gordon
Richards, commenting on Fed's rate cut today, says "this is the right decision,
made at just the right time" and that "by cutting rates now, the Fed has set
the stage for a robust recovery." (JC)
2:38 (Dow Jones) Occidential Petroleum's (OXY) stellar 1Q performance
prompted Banc of America's Tyler Dann to raise his 2001 estimates to $3.26 from
$2.86, and his price target to $30 from $28. One caveat, though: higher gas
realizations in California of between $13 to $14 per million cubic feet played
a role. Dann expects the California gas premium to stick around for thenext
several quarters, but he doesn't expect to see a repeat of quite the same
magnitude. (CCC)
2:26 (Dow Jones) Merrill's Chris Callies bumps up stocks in U.S. asset
allocation model, moving to 70% from 65%. She cuts bonds to 25% from 30%, and
leaves cash at 5%. Her 12-month target on S&P 500 is 1570. Valuations of bonds
in relation to stocks, as well as extended expectations of bonds in relation to
stocks, led to the tilt in favor of equities, she says. (TG)
2:18 (Dow Jones) Senate Finance Committee Chairman Grassley said: "I'm glad
to see the Fed demonstrate greater sensitivity to the economic slowdown.
Aggressive action is needed to keep the economy above water. It's a lot easier
to prevent a drowning than it is to rescue the drowned. And lower interest
rates can do more in the way of an immediate economic stimulus than anything
Congress can do." (JC)
2:02 (Dow Jones) The S&P 500 is as attractive now as it was in late 1987,
post-correction, says AG Edwards' chief equity strategist Stuart Freeman. "And
this is the first market since 1995 where the performance of the major indices
will be supported by a broad swath of industry groups, as opposed to the
narrowness we experienced the last three years," he says. His 12-month target
on DJIA remains 12700, and 1650 on the S&P 500. (TG)
1:52 (Dow Jones) Stock futures will likely hold on to gains Wednesday, but
could get hit with a slight selloff by the end of the week and retrace back to
pre-Fed-move levels, one off-floor expert believes. June S&Ps could fall to the
1200 level, a mark slightly above Tuesday's close of 1195.50. (ZHS)
1:40 (Dow Jones) Shares of Visx Inc. (VISX) jumped 14% in afternoon trading
after takeover specialist Carl Icahn announced he has engaged in "preliminary
discussions" with two unnamed ophthalmic companies regarding the possible
acquisition of Visx. A group led by Icahn is embroiled in a battle with Visx's
management for control of the company. A proxy fight is slated for next month's
shareholder meeting for control of the board. If victorious, Icahn has vowed to
sell Visx in an auction for a minimum bidding price of $32 a share. (JJO)
1:27 (Dow Jones) International Game Technology's (IGT) market-leader position
in the high-growth slot machine industry influenced Goldman Sachs analyst
Steven Kent's decision to start the company with a recommended list rating. He
also projected earnings per share growth of 45% in 2001 and set a price target
of $70 a share on the stock. (DDO)
1:16 (Dow Jones) The real problem with the economy is "deflation, which is
intensifying," says Michael Churchill of Polycnomics, a political and economics
consulting firm. Prime interest rate cuts don't solve this problem. (MCB)
1:00 (Dow Jones) Son of a gun. The stock market was again the cause of the
Fed's surprise interest rate cut, one money manager said. The central bank
watched this week as public companies reported earnings - or lack thereof - and
felt it had to move because products aren't moving, said Giri Cherukuri,
portfolio manager at Oakbrook Investments. "The Fed is worried that excess
inventories are going to push us into a recession." (KJT)
12:52 (Dow Jones) Prudential Securities' Ash Rajan, head of the firm's global
client equities, sees room for another 50-basis-point cut before the summer or
at least before year-end. "That in conjunction with the tax cut will do it," he
says. Speaking at the Securities Industry Association's "Day on the Street,"
Rajan said that, even if Bush's tax cut is only three-quarter of estimates, it
would be a good signal to boost morale. (CWM)
(END) DOW JONES NEWS 04-18-01
03:33 PM |
