DJN: DJ MARKET TALK: Corning Proves Things Can Always Get Worse
(Dow Jones 04/26 13:12:17)
Edited by Ray Hennessey
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
4:12 (Dow Jones) Just when you think you've hit bottom...Corning (GLW),
which already warned twice this year, is at it again, saying sales and
earnings will be lower than expected in 2Q. Investors will take little
solace in Corning beating 1Q views by a penny, though Corning crows in its
earnings release that it exceeded expectations, not noting that they talked
down numbers twice last month. (RJH)
4:00 (Dow Jones) Stocks lost some steam, but the DJIA still managed at
68-point gain to close at 10693.39 (preliminary). Nasdaq Composite was the
big loser among the major indexes, falling 25 to 2035.08 after being up much
of the day. S&P 500 gained 6 to 1234.92. Look for more earnings news after
the bell, from companies like Amgen (AMGN), Corning (GLW), Eastman Chemical
(EMN) and Starbucks (SBUX). (RJH)
3:50 (Dow Jones) Goldman Sachs analyst Richard Simon lowered his 2001 net
yield decline for P&O Princess Cruises PLC (POC) to 3%, citing weakening
industry pricing environment in North America. (DDO)
3:43 (Dow Jones) It's tough to find consistency in this market, but hospital
operator Province Healthcare (PHRC) "has met or exceeded EPS expectattions
every quarter since the company came public, representing 13 consecutive
periods," including its recent 1Q yesterday, says Merrill Lynch analyst A.J.
Rice. Still, the shares have pulled back from their recent highs, so Rice is
reiterating his buy rating. (RJH)
3:37 (Dow Jones) Though Checkfree (CKFR) hit Prudential analyst Bryan
Keane's earnings targets, he's troubled by "warning flags" on e-commerce
revenue. Also, he sees the shares coming down because "profitability with
respectable margins still seems light years away." Keane has a hold rating
and a $30 target. Shares recently traded off 5% to $39.11. (RJH)
3:33 (Dow Jones) June S&Ps are at an important juncture, says off-floor
trader. If the market can hold together and close in mid to upper range,
there's a chance to target 1270. A move above there could take Jun S&Ps to
1300 and to new monthly highs. Inability to take it out could send S&Ps to
1201 and close the gap from April 17-18. (DMC)
3:30 (Dow Jones) Texaco's first quarter earnings (TX) reported a nice
positive surprise versus expectations, said Deutsche Banc Alex. Brown
analyst David Wheeler. However, because of its high leverage to weaker oil
prices and exposure to West Coast refining, marketing and distribution,
Texaco wasn't up to the blowout results of some other major oil companies.
(DDO)
3:21 (Dow Jones) There may be more talk over expanded drug coverage out of
the Senate soon, but there appears to be little impact for generic drug
makers, Merrill Lynch's Gregg Gilbert says. "While next week's proposal will
likely be met with much fanfare, we do not believe that investors should
view the legislation as a significant investment theme for generic stocks,"
he says. (RJH)
3:10 (Dow Jones) In the past, Cytyc (CYTC) has been addled by fears that
there won't be broad market acceptance of its ThinPrep Pap smear system. But
recent data suggests that fear is no longer warranted, says Robertson
Stephens analyst Wade King. In fact, recent adoption by U.S. labs and
doctors makes King beleive that ThinPrep "is heading towards the standard of
care in cervial cytology." Wade reiterated his buy rating and $30 price
target. (RJH)
3:00 (Dow Jones) June Nasdaq hit limit down, 42 pts lower, at 1:54 p.m. CDT
after briefly touching that level earlier. At that time Jun Nasdaq did not
trigger trade curbs. Limit down is 1782. A 10-min trading curb is in effect.
If the markets remain at limit down afterward, a two-min trading halt will
occur. (DMC)
2:49 (Dow Jones) June Nasdaq weakens, breaking psychological support at
1800. So far contract is down 32 pts at 1792. (DMC)
2:47 (Dow Jones) KFC is making progress, but because of ongoing problems at
Taco Bell, investors should "stay on the sideline," on Tricon Global
Restaurants (YUM), advises J.P. Morgan's John W. Ivankoe. The analyst says
the Mexican brand is "beyond a simple marketing campaign" fix and he
questions whether Taco Bell franchisees' "willingness/ability to spend money
well in front" of improved income. (RLG)
2:38 (Dow Jones) Stocks are moving in two directions, with the DJIA up about
93, though it is retreating from its highs, and the Nasdaq Composite off 5.
Trading had been described as uninspired earlier in the session. (RJH)
2:33 (Dow Jones) A.G. Edwards ups the rating on Apple (AAPL), saying with Q1
out of the way and $4B in cash, it's a good name to own over the next 6-9
months. Analyst Brett Miller says catalysts include Apple's retail store
strategy, the release of new products -- possibly a new iBook -- at MacWorld
in July, and an overhauled education business. Miller sets $35 price target.
Stock up 4% to $25.81. (MLP)
2:23 (Dow Jones) Just four months after Radiologix (RGX) extended the
deadline for its planned merger with SKM-RD Acquisition Corp., an affiliate
of investment firm Saunders Karp & Megrue, the deal has been called off. It
seems Radiologix, a provider of radiology services, was unable to obtain
fianacing. It's by no means the first failed deal this year. At least 20
mergers, each valued at a $100 million or more, were called off in the 1Q,
according to Mergerstat, a data service of Houlihan Lokey Howard & Zukin.
(JAW)
2:14 (Dow Jones) Even though Bristol-Myers Squibb Co. (BMY) beat
first-quarter earnings estimates by a penny, Gruntal analyst Jeffrey Kraws
is slightly disappointed with the drug maker. Given that key products
continue to underperform his expectations, he lowered his 2001 and 2002
earnings projections. "We continue to believe that the company must
demonstrate that it is progressing with its internal business growth
initiatives in key pharmaceutical therapeutic categories and
non-pharmaceutical operations before the prevailing uncertainty regarding
competitive threats to key products dissipates," he says. (BMM)
2:07 (Dow Jones) Despite the slowing economic environment, Intersil Holding
(ISIL) managed to encourage investors with better-than-expected
first-quarter results. Shares shot up as much as 21.6% Thursday. The
chipmaker reported earnings of 7 cents per diluted share, topping Wall
Street estimates by 2 cents. Revenue totaled $127.8 million, representing a
9% increase from the year-ago quarter. (EGS)
1:56 (Dow Jones) June S&Ps are near session highs as the market moves above
1250. "We've broken a three-day down trend, which is positive," one floor
trader says. "You have to give this market credit. Even if it sells off
late, I don't see it having much follow-through." Volume still painfully
light - like a holiday trade, he says. (DMC)
(END) DOW JONES NEWS 04-26-01
04:12 PM
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