14:52 ET Motorola (MOT) 16 +0.8 (+5.3%): -- Update -- Stock edging lower; according to traders, market reacting to Dow Jones report that a judge has denied MOT's bid to stay order in Iridium case, opening door for Iridium to sue the former financial backer.
14:51 ET QUALCOMM (QCOM) 64.85 +6.10 (+10.4%): -- Update -- Earlier rumor on MOT/QCOM (see 10:53 comment) apparently ignited by research from Salomon Smith Barney; in a note now out from the firm, analyst says that he confirmed that MOT's semi unit is focusing its 3G chip development on WCDMA and is not actively developing a 1XRTT (CDMA precursor to 3G) chip solution; however, MOT is pursuing the 1XRTT handset market with plans to ship its first 1XRTT phone by the end of 2Q01; Salomon now expects QCOM to be used in 100% of MOT's 1XRTT handsets.
14:39 ET Dell Computer (DELL) 29.99 +1.52 (+5.3%): -- Technical -- Pushes back above its 200 day simple ma (29.7) amid solid volume (failed to hold above yesterday). Sustained action above leave the door open to strong resistance at 33. Support at 28.8/28
14:22 ET Allstate Corp (ALL) 44.15 +1.65 (+3.8%): -- Update -- Goldman Sachs suggests swapping out of Progressive (PGR +15% today) and into ALL. Firm feels that valuation of ALL not reflecting growth rate improvement; PGR will have difficulty improving top line without hurting margins while ALL earnings growth due to top line and margin growth. Also, ALL's earnings stream more diversified with 25% now in life insurance.
14:19 ET Nucor (NUE) 47.75 -0.39 (-0.8%): Hearing from traders that steel products manufacturer is guiding down for Q2.
14:06 ET Lucent Tech (LU) 8.46 +0.89: -- Update -- Hearing that one factor behind the Lucent rally is a rumor that firm is receiving bids for its optical fiber unit (have heard past estimates that the unit is worth $6-7 bln). A sale could help to quell fears of financial troubles. No confirmation on these rumors.
14:05 ET Sun Microsystems (SUNW) 20.13 +1.55 (+8.3%): -- Update -- ABN AMRO cautious ahead of earnings report this evening given the recent run in the stock price and what firm feels are risks associated with the quarterly release; while believes company can meet est. for the qtr, thinks full yr outlook is more important; thinks 2002 consensus could prove to be too high; ABN would not be surprised to see the stock sell off on the release and after the conference call.
13:58 ET Lucent Tech (LU) 8.59 +1.02 (+13.5%): Whoa Nelly! Even Lucent beginning to participate in tech sector advance. Stock has exploded to the upside since clearing difficult resistance at the $8 level.
13:35 ET Motorola (MOT) 16.16 +0.96 (+6.3%) : -- Update -- Technical -- Inches beyond its 50 day simple ma (15.9) in recent action with sustained posture above leaving the door open to additional short term upticks. Next resistance is at 16.90/17.20.
13:30 ET Ivax Corp (IVX) 33.70 +0.7 (+2.1%): Federal Court denies motion of American BioScience Inc. (ABI) for a temporary restraining order or preliminary injunction requiring the FDA to revoke its approval of IVAX' generic form of Taxol.
13:29 ET Sector Watch: Semiconductor : SOX index (at 670) still below the recent high for the move but individual issues (AMCC, KLAC, LLTC and MOT) are ramping. Next resistance for the index is at 688 and 700.
13:27 ET LM Ericsson (ERICY) 6.78 +0.46 (+7.3%): -- Update -- CSFB mid-day note: According to firm, ERICY has confirmed talks with Sony (SNE) to put together an operation in mobile phones, although final decisions must still be made; thinks best outcome for ERICY would be if companies did a spin-off of the phone operations; thinks benefits of a combination are substantial and that it would be positively received.
13:05 ET Mattel (MAT) 16.25 -0.68 (-4%): Salomon Smith Barney downgrades to OUTPERFORM from BUY following conference call; feels toy maker now faces a long road to recovery; Barbie sales lower-than-expected... This morning, MAT reported an in-line Q3 loss of $0.03.
13:00 ET McDATA (MCDT) 30.57 +7.37 (+31.8%): -- Update -- Hearing from sources at Wit SoundView that firm calling rally in the stock a function of a short-squeeze on heels of the EMC report; firm says it would sell into strength.
12:57 ET Micromuse (MUSE) 43.15 -7.08 (-14.1%): -- Update -- Technical -- Remains firmly on the defensive (see 9:24, 9:16 comments), now back probing its 50 day simple ma (43.4) with retracement support following at 41.5. Stronger support near 38.
12:49 ET Avici Systems (AVCI) 15.10 +0.80: -- Update -- Stock gains momentum after CEO interview on CNBC, but upside might be limited by a somewhat negative Light Reading article that highlight company's burn rate and customer concentration (85% of revenues from T, ENE, and Q).
12:44 ET Sector Watch: Storage : Nasdaq rebounds to highs of the session and Dow makes run after brokerage firms come to defense of Goldman Sachs. Positive investor/analyst reaction to EMC (EMC 40.53 +3.87) qtr has ignited move across the storage sector. Best performer in space today is McDATA (MCDT 30.10 +6.90), which has advanced almost 30% (see 09:44 comment). Also running are JNIC (+20%), EMLX (+14%), BRCD (+10%), QLGC (+8%).
12:32 ET Avici Systems (AVCI) 15.03 +0.73 (+5.1%) : -- Technical -- Advanced has been stymied near its 50 day simple ma (15.07 today) for the last two sessions. Limited consolidation near this barrier raises probability that it is a temporary pause. Next resistances are at 16.25/17.06 with a stronger ceiling at 18.12/18.50. Short term support near 14.50/14.25 with critical floor at 13.73. |
