MARKET TALK: Stocks Improve; Will Greenspan's Outlook?
23 Jan 16:04
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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4:04 (Dow Jones) Stocks manage to hang onto nice gains, led by tech, which
bounces after a rough Tuesday. Earnings keep pouring in, including Amgen,
Broadcom, and Flextronics tonight, while data still leaning in recovery
direction. Semis, oils, airlines, retailers all act well. Thursday a big day -
weekly jobless claims, and Greenspan talks to Senate panel about the economy.
Tsys hit hard. DJIA adds 15 to 9729, Nasdaq adds 39 to 1922, and S&P 500 higher
by 8 to 1128 (preliminary). (TG)
3:53 (Dow Jones) OMB's message today - that a return to deficits will stop
debt reduction - may have led to market rumors that Treasury will end its
buyback program. While that remains a distinct possibility, Treasury would be
the one to announce that, not OMB, and growing debt wouldn't necessarily mean
an imminent end to buybacks. OMB's statement "was a simple statement of math.
If you are running a deficit, the goal of paying down publicly held debt is
going to take a little longer." said Treasury spokeswoman Michele Davis. (SV)
3:45 (Dow Jones) Considering the number of credit issues confronting the
banking industry, RBC Capital is surprised at how well bank stocks are holding
up. But, event risk is still high in the U.S. economy, which could lead to
other high-profile bankruptcies, and if filings continue at their current pace,
bank stocks will eventually sag from the weight of problem credits. (TG)
3:34 (Dow Jones) Northwest Airlines (NWAC) is likely to see a slower EPS
recovery relative to the rest of the airlines, says Deutsche Banc, which
downgrades the stock to buy from strong buy. The reason for the firm's
pessimism is "weaker-than-expected Pacific revenue performance, coupled with
higher costs." Deutsche Banc does like NWAC's fleetflexibility and aggressive
cost reduction plan. NWAC shares losing 2c to $16.19 on lighter-than-normal
volume. (GS)
3:25 (Dow Jones) Investor borrowing perked up a bit last month. Figures
released Wednesday by the New York Stock Exchange show that margin debt at its
member firms rose 1.2% from November to December. Margin debt fell 24% in 2001
and is down nearly 46% since hitting a high of $278.53 billion in March 2000.
(GFC)
3:13 (Dow Jones) Some observers view Netscape's antitrust suit against
Microsoft (MSFT) as more of an effort to give its parent, AOL Time Warner
(AOL), negotiating leverage rather than a push to recover monetary damages. AOL
may use the suit to bolster support for the nine non-settling states pushing
for stricter remedies on Microsoft or as a bargaining chip when issues such as
access to Microsoft-backed cable systems comes up. As Michael Gartenberg,
research director at Jupiter Media Metrix, puts it: "AOL's move is likely more
competitive in nature than a serious attempt to recover potential revenues lost
to Microsoft." (MLP)
2:49 (Dow Jones) In an action-packed U.S. session for currency markets, USD
stands out as winner versus other majors. No single factor behind USD gains,
more a case of EUR, JPY, GBP and CHF pushed down than USD advancing on its own
merits. Generally thin markets also exaggerating movements, traders say. USD at
or near intraday high vs four major counterparts. (RF)
2:35 (Dow Jones) Speaking of the medium-term trend (up to about four months)
of the equity market, Lehman technician Jeff deGraff says this: "At best, the
downtrend has moderated and may be morphing into a trading range, but the
oversold condition has not become extreme enough and sentiment not bearish
enough to make an aggressive bullish call." (TG)
2:24 (Dow Jones) Five reasons for Salomon's upgrade of Motorola (MOT): 1)
solid momentum in handset margins that should continue this year; 2) a
measurable plan to monitor improvements in its two ailing businesses, semis and
infrastructure; 3) the poor industry outlook for handsets and infrastructure
are already in guidance; 4) added cost savings in 2Q are expected; and 5) an
attractive valuation on both trailing price-to-sales as well as relative P/E
multiple on normalized earnings. Shares up 2% at $13.80. (TG)
2:12 (Dow Jones) One advisory professional involved in assessing Sept. 11's
impact on New York's economy said the loss of NYC jobs due to relocating
outside of the city "may be less than had been feared," noting that
"tremendous" pressure from politicians and business leaders likely helped
convince many businesses to remain in NYC. (TL)
2:03 (Dow Jones) V.I. Technologies (VITX) shares get a bounce after Doug
Sease, deputy markets editor with the Wall Street Journal, talks about the
company on CNBC's 'Sleeper Stocks' segment. Sease notes the stock is a
speculative pick, but its technology could help ensure a clean blood supply.
Shares up 14% to $7.04. (NBB)
1:54 (Dow Jones) One distressed debt specialist says he is seeing Kmart (KM)
trade claims (claims from vendors) for air mattresses and vacuum cleaners. He
estimates that these claims would be priced about 10 cents below the company's
bonds, which are trading in the high 40 cents per dollar range. (MCG)
1:36 (Dow Jones) NAM President Jasinowski terms "right on the money" what he
calls Treasury Secretary O'Neill's "strong advice to Japanese leaders to
address their underlying economic problems related to productivity and
non-performing bank loans instead of artificially devaluing the yen."
Jasinowski voices hope O'Neill's statements in Tokyo "will be a wake-up call to
foreign exchange traders." (JCC)
1:20 (Dow Jones) Kmart's (KM) bankruptcy will have a material upside impact
on Wal-Mart's (WMT) earnings, Morgan Stanley says. Based on preliminary
calculations, Wal-Mart should gain an incremental 5c to 7c in EPS over 2002 and
2003. Given the substantial change in the discount-store landscape, Morgan
Stanley sees Wal-Mart as the major beneficiary of market share gain and upside
to current earnings forecasts. Other retailers that should benefit, to some
extent, are Dollar General (DG), Family Dollar (FDO), Target (TGT), and Toys R
Us (TOY). Wal-Mart up 2.2% at $59.34. (TG)
1:06 (Dow Jones) The euro is now breaking through the 88 cent level as
selling pressure is not easing, traders say. EUR/USD is $0.8799; USD/JPY is
Y134.39; EUR/JPY is Y118.29. (JRH)
12:57 (Dow Jones) Openwave's (OPWV) 4Q numbers were broadly in line, WR
Hambrecht says, though gross margins were a little light. The firm cuts
estimates and suggests investors stay away, however, until there are signs of a
meaningful uptake in wireless application protocol-based wireless Internet
services. Keeps neutral rating. Shares off 12% at $6.98. (TG)
12:40 (Dow Jones) Latest USD/JPY high for the day - Y134.60 - a new 39-month
high. EUR/USD is $0.8832; USD/JPY is Y134.38; EUR/JPY is Y118.70. (JRH)
12:29 (Dow Jones) Senate Minority Leader Lott, R-Miss., says he is "open" to
a scaled-back economic stimulus proposal offered by Senate Majority Leader
Daschle, D-S.D. but planned to first discuss it later Wednesday at a meeting
with Republican colleagues before deciding whether to go along. (JCD)
(END) DOW JONES NEWS 01-23-02
04:04 PM |
