MARKET TALK: An Unfortunate Oversight, Of Course
25 Jan 09:26
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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MARKET TALK can be found using code N/DJMT
9:26 (Dow Jones) Hewlett-Packard (HWP) left one name off the list when it
summarized the careers of its board members in a filing with the SEC Thursday.
In a filing related to the proposed merger with Compaq Computer (CPQ), H-P
touted its "highly qualified and independent board," and the board's "deep
experience with strategic transactions." However, the company didn't mention
the career and qualifications of board member Walter Hewlett, the son of
company co-founder William Hewlett, who has been a vocal opponent of the
merger. (RG)
9:22 (Dow Jones) The news out of Kmart (KM) isn't likely to soothe antsy
investors. It's extremely early in the game, but Kmart just said it's looking
into allegations, received in an anonymous letter to the company, about
unspecified accounting issues. The SEC and the company are looking into it.
(TG)
9:12 (Dow Jones) Imclone Systems (IMCL) said the majority of CEO Samuel
Waksal's stake in the company was sold to cover margin calls on his personal
account. On Jan. 18, Bank of America sold 2.6 million Imclone common shares and
UBS PaineWebber sold 213,000 shares, reducing Waksal's beneficial ownership in
the company to 582,000 common shares. Bank of America also sold 72,754 Imclone
shares owned by COO Harlan Waksal to cover margin calls on his personal
account. After the sale, Harlan Waksal beneficially owned 3.1 million Imclone
shares. The stock closed at $73.83 on DEC. 5, 2001, and $19.58 Thursday. (RG)
9:08 (Dow Jones) Pittsburgh, that citadel of blue-collar sweat and
old-economy muscle, is sprinting into the Internet age, taking the top spot in
Web-measurement-firm Nielsen/NetRatings' list of the fastest growing wired
cities in the U.S. Pittsburgh's ranks of Web surfers rose 20.4% in 2001 to 1.2
million. Other bastions of Middle America followed, with Salt Lake City adding
20% more surfers and Phoenix 17% more. The top-five was rounded out by Raleigh
with 13.4% and Philadelphia with 12.8%. (RTR)
8:57 (Dow Jones) IPO enthusiasts will have to wait another week for the 2002
market to begin. Alliance Medical has had some problems pricing, and has been
pushed into next week, underwriters say. It's an inauspicious start to a
new-issues market that has high hopes it can avoid the light volume and
inconsistent trading that marked 2001's IPOs. But it doesn't mean the rest of
the backlog is having problems. "It's certainly not a bellwether," says Randall
Roth, an analyst with the IPO Plus Aftermarket Fund. (RJH)
8:52 (Dow Jones) Treasurys are off to a lousy start for the day, building on
a bearish trend that developed overseas. Pressure on Tsys is also said to be
coming on a continued unwind of steepeners following Greenspan's speech. The
market is also grappling with distribution of yesterday's near-$7 billion in
non-government issuance. (SV)
8:45 (Dow Jones) Lehman technician Jeff deGraaf says bearish numbers are
within 1% of being the lowest reading in five years. What's more, a put/call
reading of 0.39 is consistent with a market top, not bottom. "With consensus
where it is, the lack of upside momentum and sponsorship, we are still in the
camp that a deeper oversold condition will develop this spring," he says. That
might not jibe with emerging economic data, but if the majority is discounting
a recovery, it is unlikely to be met by additional buyers. Keep an eye on the
ability of market breakouts to follow through, which will be an early
indication that the environment is changing. (TG)
8:38 (Dow Jones) Morgan Stanley downgrades Gateway (BTW) to neutral "because
we think the shares will trade sideways for the next few quarters until it is
clear whether or not the company can generate cash." The firm says Gateway has
potential; however, because the company is giving limited info on its new
marketing plan, Morgan Stanley is willing to wait and see if the plan works
before committing one way or the other. (GS)
8:30 (Dow Jones) The week's closing session doesn't seem to bring the news of
earlier sessions, but there's still plenty to consider. Not surprisingly, most
of it is on the earnings front. Qualcomm (QCOM), JDS Uniphase (JDSU), VeriSign
(VRSN), and Ericsson (ERICY) all sound a little cautious. Existing home sales
are the day's big economic reading, while the euro is getting hammered, not
unlike the Rams will on Sunday. Stock futures look flat. (TG)
(END) DOW JONES NEWS 01-25-02
09:26 AM |
