MARKET TALK: 'Attractive' Never Looked So...Attractive
27 Feb 16:10
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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4:10 (Dow Jones) Arnhold & S. Bleichroeder, bless 'em, upgraded Playboy
Enterprises (PLA) to attractive, saying the strategic plan put in motion late
last year is taking hold; $22 price target maintained. The investment house
withheld a buy rating, though, preferring to see at least another quarter of
improved results. Excluding the firm's catalog unit, which was divested, fiscal
year revenue reported Tuesday actually grew 2%, despite an overall revenue
decline of 5%. Arnhold says the entertainment unit - as opposed to online and
licensing operations - remains the company's core business; that unit grew
revenue 13% and cash flow 17% during 2001. Shares up 11% to $15.97. (NBB)
4:04 (Dow Jones) Perplexing action in stocks Wednesday, where optimism on
durable goods reading and generally as-expected thoughts from Greenspan gives
way to tech weakness in afternoon. Philip Morris, GM, and P&G are notable DJIA
losers, and Cisco weighed on tech. Weekly jobless claims, 4Q GDP, and Chicago
PMI make for a busy Thursday morning. DJIA edges up 14 to 10129, Nasdaq Comp
eases 15 to 1751, and S&P 500 flat at 1109 (preliminary). (TG)
3:50 (Dow Jones) Robust consumer spending will keep Canada's 4Q from tipping
into contraction, thus avoiding the two consecutive negative quarters many
consider the benchmark of a recession. Business investment continued to
languish during the last three months of the year. (DBC)
3:25 (Dow Jones) House Democrats, with Rep. LaFalce, the ranking minority
member of the House Financial Services Committee, and House Minority Leader
Gephardt, in the vanguard, will unveil a bill Thursday aimed at "preventing
future Enrons" by addressing problems in financial oversight and discloser
systems. (JCC)
3:13 (Dow Jones) In wake of 4Q results, Pru evaluated Home Depot (HD) on the
same points that caused it to cut Lowe's (LOW) earlier this week. The two
macroeconomic factors cited - possible rise in interest rates and peaking
housing turnover - should effect both companies in the same way. On the
remaining points, Pru says Home Depot has better trends than Lowe's in seven of
10 categories, so it's maintaining buy rating, and raises price target to $62
from $57. HD off 1.7% at $50.68. (TG)
2:56 (Dow Jones) Greenspan urged Congress to pass check truncation
legislation in the Q&A after his testimony. Check truncation uses technology to
cut back on the amount of paper-moving required for checks to clear. The Fed
currently has a proposal out to "move checks through the system in a much more
facile way," Greenspan said. (RSC)
2:38 (Dow Jones) No doubt a discouraging afternoon for the bulls. Robust
stock rally has faded, with techs leading the charge lower. Just more evidence,
certainly for the technicians, that the path of least resistance for this
market is lower. Communication tech, gold, and semis are among biggest losers.
Greenspan generally subdued, and durable goods perhaps a wash when looked at
with new home sales. DJIA drop 12 to 10102, Nasdaq Comp eases 16 to 1750, and
S&P 500 falls 2 to 1107. (TG)
2:28 (Dow Jones) Nikkei reporting that the BOJ will ease on Thursday, either
by hiking outright JGB purchases, or cutting the discount rate from already
extremely low level of 0.1%. Either move would have little impact, particularly
in wake of government's desperate effort on Wednesday. Apparently, the only
concrete measures in the govt's plan, besides pressuring the BOJ to ease,
appears to be aimed directly at propping up the Tokyo stock market - scaring
short-sellers and arm-twisting public fund managers to buy shares. (GMM)
2:11 (Dow Jones) IRS says unclaimed refunds totaling more than $2.3 billion
await about 1.7 million people who failed to file a 1998 income tax return.
"Time is running our for individuals to take steps to claim this money," says
IRS Commissioner Rossotti. "If no return is filed to claim the refund within
three years, then this money becomes the property of the U.S. Treasury." (JCC)
1:59 (Dow Jones) Though he contines to question whether the economy needs a
further economic stimulus from Congress, Greenspan says that more tax cuts
probably would stimulate the economy. (RSC)
1:48 (Dow Jones) ABN-Amro says that despite the continued rally in the
airlines, investors should continue to overweight the sector. The carriers with
the potential for the largest percentage gains would include the names ABN-Amro
considers the three weakest airlines - United (UAL), America West (AWA), and US
Air (U) - but mainly due to their low prices. Avoid those, because there's too
much risk, and concentrate on American (AMR), Delta (DAL), Northwest (NWAC),
Continental (CAL), Alaska Air (ALK), and Southwest (LUV). (TG)
1:33 (Dow Jones) UPS isn't the U.S. Army, so it might seem odd that defense
contractor Integrated Defense (IDE), today's IPO, would be developing a hybrid
electric system for the shipping company. It's not that much of a stretch,
though, since Integrated Defense CEO Thomas Keenan views UPS as a "paramilitary
organization" of sorts, given its extensive motor pool and logistics systems.
Don't look for too much other commercial business for Integrated Defense,
though, since Keenan says he wants to focus on the military project. (RJH)
1:19 (Dow Jones) Cisco (CSCO) shares are off 5% after Wachovia Securities
cuts its estimates of the networker's 3Q, which ends in late April. Analyst
Stephen Koffler cites continued capital spending cuts by telecom providers and
project delays by corporate customers. The stock could test its September low
of $11 if investors conclude 3Q sales will fall from 2Q levels, he says. It was
at $14.83 in recent trading. (PDL)
1:11 (Dow Jones) Mortgage application activity for the week endedFeb. 23 was
little changed from the previous week, with the MBA refinancing index falling
merely 0.3% to 1921.6 and the purchase index up 8.7% to 315.5. Analysts say
stable mortgage applications are expected, with just 4 BP drop in mortgage
rates last week. (JSX)
(END) DOW JONES NEWS 02-27-02
04:10 PM |
