14:35 ET Dow +150, Nasdaq +22, S&P +9.25: [BRIEFING.COM] Nasdaq making impressive run setting up a strong close. Chip group
has turned around as a umber are now in positive territory. Surge being led by comm IC chips including BRCM, PMCS...Web hosting giant
Exodus (EXDS 8.85 -0.75) under pressure today after a report that two more execs have left company. Company holding conf call after the
bell...Dow continues to surge this afternoon. Usual suspects continue to lead the Dow higher: PG, BA, MO. Coca-Cola (KO 48.05 +1.86)
and Disney (DIS 31.27 +1.02) have made impressive late session rallies today...Telecom stocks have come on strongly today despite some
negative earnings results from NXTL. SBC and Verizon (VZ 56.40 +1.33) are making strong runs this afternoon...Market is poised for a
strong last hour of trading. SOX -1.8%... NYSE Adv/Dec 1602/1359... Nasdaq Adv/Dec 2067/1682.
14:00 ET Dow +107, Nasdaq +3, S&P +3.59: [BRIEFING.COM] The Nasdaq pushes ahead to a new session high on improvement
among a number of groups including software, chips, networkers, storage. The intraday key to maintaining the upside bias is a continued
posture above 2110. Next resistance is in the 2132/35 area...Not seeing a surge from one group, but rather a broad-based moderate
improvement. Storage stocks have been the strongest among techs the last hour. Network Appliance (NTAP 22.90 +0.15) has enjoyed a
nice spike....Dow continues to set new session highs thanks in large part to Procter & Gamble (PG 64.60 +4.55), which has been gaining
momentum all day. Boeing (BA 63.86 +2.06) and Philip Morris (MO 51.87 +1.76) also propelling the Dow higher...Defensive names easing
up a bit as traders swap into techs. SOX -2.9%... NYSE Adv/Dec 1479/1446... Nasdaq Adv/Dec 1922/1774.
13:35 ET Dow +113, Nasdaq +3, S&P +4.20: [BRIEFING.COM] Nasdaq surging over last few minutes following the Dow's lead,
which just set a new intraday high. SOX Index (648.05 -14.61) improving, but more slowly. Comm IC stocks are rebounding strongly over
past few minutes, after leading the SOX lower this morning....Rebound in Nasdaq will be difficult without strong participation from
SOX....Seeing modest improvement in cyclicals such as machinery....Biotechs are coming on strong over the past hour including CRA,
GENZ, GILD, MLNM, PDLI....Food stocks were strong earlier, but have weakened. Other defensive groups, however, remain strong
including beverage and tobacco. SOX -2.2%... NYSE Adv/Dec 1431/1469... Nasdaq Adv/Dec 1818/1810.
13:05 ET Dow +96, Nasdaq -9: [BRIEFING.COM] A couple of interesting tidbits from Briefing.com trading floor sources. First, we're
hearing that SG Cowen made negative comments on chip equipment giant Applied Materials (AMAT 52.50 -2.10); said bookings were
weak in the month of March at about $100 mln vs $1 bln in March 2000. Second, Lehman analyst Dan Niles just presented at a VC
conference in Pebble Beach where he reportedly maintained his negative tone on semis, saying that an inventory overhang remains and that
pricing pressure will become a bigger issue going forward. Chip equipment remains anemic. Leading percentage losers are BRKS, KLIC,
PRIA...Seeing nice run in beverage giants Coca-Cola (KO 47.47 +1.28) and Pepsi (PEP 44.75 +0.94) as they have shown nice momentum
over last hour...Food and tobacco stocks remain strong...Seeing nice run in the Dow since last update as PG continues its run. Also seeing
surge in other Dow components AA, IBM, KO, MMM. NYSE Adv/Dec 1398/1492... Nasdaq Adv/Dec 1752/1830.
12:30 ET Dow +57, Nasdaq -15, S&P -1.16: [BRIEFING.COM] Dow remains strong while Nasdaq continues to move sideways
although seeing modest rebound in semiconductor, networking and computer-hardware....Banks have headed south just recently although
many are hugging the flat line. Among techs, storage stocks have given up gains from earlier in the session as mostly positive calls from ABN
AMRO have subsided. Software also has weakened with ADBE and TIBX the percentage losers....Interactive software group continues to
do very well on CSFB positive comments this morning. Firm initiated coverage of THQ Inc (THQI 42 + 3.91), Take-Two (TTWO 14.97
+1.03), and Activision (ATVI 28.12 +0.86) with BUY ratings....Cyclicals remain weak as traders seek safety in defensive groups like food,
beverage and tobacco. NYSE Adv/Dec 1355/1500... Nasdaq Adv/Dec 1664/1826.
12:00 ET Dow +79, Nasdaq -8, S&P +1.28: [BRIEFING.COM] The Nasdaq has been in a holding pattern most of the day, while the
Dow has been strong thanks to a positive earnings report from Procter & Gamble (PG 63.95 +3.90) and favorable defense spending news
for Boeing (BA 63.78 +1.98). Important economic news out this morning as the NAPM index rose slightly to 43.2%, a bit weaker than the
consensus estimate of 44.0% and roughly flat with the March reading of 43.1%. Index appears to have formed a bottom which would
decrease the likelihood of a 50 bp ease on May 15. But clearly, we are still in an easing mode. Eyes now turn to Friday's employment
report....As for market action today, traders are switching out of techs and cyclicals into defensive groups. SOX Index has remained weak
all day. Comm IC chips have been the weakest among the chips. Rambus (RMBS 15.87 -1.13) has been down all day after a federal judge
dismissed a number of their claims against Infineon. Also weak today are the homebuilders despite a merger between Pulte Homes (PHM
42.40 -4.38) and Del Webb (WBB 38.67 +4.87) to create the nation's largest homebuilder. PC stocks remain under pressure as Merrill
Lynch reduced estimates for Dell (DELL 25.07 -1.17) as firm expects next couple of qtrs to prove challenging...Defensive groups doing well
include food, tobacco, beverage. Retailers and banks are among the very few non-defensive groups to do well. Philip Morris (MO 51.57
+1.46) is near a 52-wk high. SOX -2.4%... NYSE Adv/Dec 1347/1474... Nasdaq Adv/Dec 1638/1789.
11:30 ET Dow +54, Nasdaq -16, S&P -1.96: [BRIEFING.COM] Nasdaq has done little since last comment....Clearly, traders swapping
from techs and cyclicals to defensive groups....Chips remain weak, but seeing very weak performance by comm IC stocks as VTSS,
PMCS, AMCC, TXCC are among the worst performing chip stocks. Chip equipment also giving up strong gains of yesterday with Brooks
Automation (BRKS 57.04 -5.57) leading the group lower....Online travel stocks continue to tear it up. Last night, Expedia (EXPE 27.95
+1.94) posted its first quarterly operating profit a year ahead of plan, and guided forecasts sharply higher as it sells more lucrative,
higher-margin packages. Competitor priceline.com (PCLN 6.05 +1.20) up sharply on Goldman Sachs upgrade while TVLY also up
sharply. These stocks have doubled since April 1...Apparel retailers continue to perform well with Ann Taylor (ANN 28.75 +1.50) leading
the group. DJTA -1.0%... DJUA -0.3%... SOX -2.6%... S&P Midcap 400 -0.7%... NYSE Adv/Dec 1273/1485... Nasdaq Adv/Dec
1560/1773.
11:00 ET Dow +77, Nasdaq -8, S&P +1.63: [BRIEFING.COM] The Nasdaq continues to trade lower since the NAPM release, but the
Dow has been able to remain in positive territory. Leading the Dow higher are Procter & Gamble (PG 63.76 +3.71) on a positive earnings
announcement and Boeing (BA 63.61 +1.81) on report of increased defense spending. Also, with defensive groups like tobacco leading the
way, Philip Morris (MO 51.66 +1.55) is near a 52-wk high....PC stocks under pressure as Merrill Lynch reduced FY02 and FY03
estimates for Dell (DELL 25.07 -1.17) as firm expects next couple of qtrs to prove challenging. Bucking a strong retailing sector is J.C.
Penney (JCP 19.56 -0.70) on a Bear Stearns downgrade after shares have doubled in the past four months....Good news on the IPO front
as Reliant (RRI 33.64 +3.64) surges 14% from its offering price, opening for trading at $34. NYSE Adv/Dec 1293/1394... Nasdaq
Adv/Dec 1501/1682.
10:30 ET Dow +20, Nasdaq -23, S&P -4.12: [BRIEFING.COM] Indices have traded lower since the release of the NAPM data. The
NAPM index rose slightly to 43.2%, a bit weaker than the consensus estimate of 44.0% and roughly flat with the March reading of
43.1%. April marked third consecutive rising month which supports the argument that we have seen a bottoming in the NAPM. If so, more
people will be heading over to the 25 bp Fed easing camp, from the 50 bp prediction. Nevertheless, expectations are still clearly in favor of
a Fed easing on May 15. Prices paid index fell to 48.9% from 49.9%, which is good news on the inflation front. Not surprisingly,
employment index fell to 38.1% from 40.4%, increasing the probability of another payroll decline in Friday's report, which will be another
key report for the Fed...Bank stocks traded the strongest on the NAPM release as many are now in positive territory...Traders switching out
of techs and cyclicals into defensive groups today. Retail is one of few strong non-defensive groups...Adobe (ADBE 41.92 -3) is worst
performing software stock as it has started to see slowdown in some European countries. NYSE Adv/Dec 1143/1415... Nasdaq Adv/Dec
1361/1670.
10:00 ET Dow +37, Nasdaq -9, S&P +0.04: [BRIEFING.COM] NAPM Index just released at 43.2% vs. market consensus of 44.0%.
Initial reaction slightly lower....Techs and cyclicals are generally weaker in the first half hour of trading, but defensive groups and most
retailers are doing well. Chips giving up ground, especially comm IC stocks such as AMCC, PMCS, TXCC, which are the weakest after
posting 100% gains in April....Interactive entertainment stocks up strongly after CSFB starts THQI, TTWO, ATVI with Buy ratings as
analyst believes sector is beginning what will be the largest and most significant growth phase in its history....Provider of electricity and energy
services, Reliant Resources (RRI), prices 52 mln share IPO at $30 per share, well above the initial range of $14-$19. NYSE Adv/Dec
1170/1201... Nasdaq Adv/Dec 1352/1460.
09:45 ET Dow +22, Nasdaq -4, S&P -2.41: [BRIEFING.COM] Market opens slightly higher, but with little conviction in the early going
as traders await the NAPM Index, due out at top of the hour. Should be ninth consecutive month of sub-50% levels as manufacturing sector
currently lacks the demand to revive. Data below 50% is considered a contraction. Briefing.com expects no significant improvement in April
after two months of modest gains...Storage stocks off to a mixed start. ABN AMRO upgrades EMC (EMC 40.35 +0.75). Initiates
Brocade (BRCD 39.76 +1.77) and McData (MCDT 30.35 +2.44) with Buys, but starts Emulex (EMLX 35.29 -0.62) and Network
Appliance (NTAP 22.06 -0.69) with Hold Ratings...Homebuilders generally higher on merger between Pulte (PHM not open) and Del
Webb (WBB not open) to create nation's largest homebuilder...In early going, chip and chip equipment stocks giving up gains from
yesterday. Also weak are banks, brokerages, biotech and telecom. Oil exploration and some select retailers are strong.
09:15 ET: [BRIEFING.COM] Futures have improved since last update, now poised for a flat open. Presently, the S&P futures, at 1252,
are 3 points below fair value while the Nasdaq 100 futures, at 1863, are 3 points below fair value...Key NAPM data due out at
10ET...Earnings reports generally positive. Quite a few are trading up despite lackluster results...Positive call on storage king EMC (EMC
39.60), which was upgraded by ABN AMRO...Nextel (NXTL 16.25) reporting wider than expected loss and a 5% workforce
reduction....priceline.com (PCLN 4.85) up sharply in pre-market on Goldman upgrade based on improved outlook with Q1 potentially
being its last unprofitable qtr....Most European stocks markets were closed for the May Day holiday, however, Asian markets were sharply
higher. The yen rose against the dollar for the second consecutive day as opinion polls indicate people are confident new Prime Minister will
be able to turn economy around.
08:45 ET: [BRIEFING.COM] Cash market currently set to begin the day on a slightly negative note. Presently, the S&P futures, at 1248,
are 7 points below fair value while the Nasdaq 100 futures, at 1850, are 16 points below fair value...Rambus (RMBS 17) under pressure in
pre-market on EB News report that court dismissed all but three of the patent infringement claims filed against Infineon...Dow component
Procter & Gamble (PG 60.05) reporting $0.02 cents above consensus, comfortable with fiscal Q4 estimates....Consolidation in the
homebuilding space as Pulte Homes (PHM 46.78) and Del Webb (WBB 33.80) will merge to create nation's largest homebuilder....NAPM
Index due out at 10 ET will be important number for Fed interest rate decision. Index has been ticking up the past two months, perhaps
establishing a bottom in January. Briefing.com expects 43.0, slightly below consensus of 44.0.
08:30 ET: [BRIEFING.COM] S&P futures -5, or 5 pts below fair value; Nasdaq 100 pre-market indicator -15. Indications remain
negative but have regained some lost ground in the past half hour. DELL is off 0.75 on the Merrill Lynch estimate reductions, and EXDS is
down 0.65 on a CFO resignation, but not seeing many other big stories this morning.
07:50 ET: [BRIEFING.COM] S&P futures -6, or 6 pts below fair value; Nasdaq 100 futures -21, or 20 pts below fair value. Have seen
significant erosion in the futures over the past half hour despite a lack of significant trading catalysts.
07:25 ET: [BRIEFING.COM] This morning's fair value figures -- S&P 500 fair value: 1255; closed even with fair value on Monday.
Nasdaq 100 fair value: 1866; closed 1 pt above fair value on Monday. Current indications: S&P 500 futures are -2.8, or 2.8 pts below fair
value. Nasdaq 100 is +6, or 7 pts above fair value... The major news, on what has been a very quiet morning, is the 2-cents-better earnings
report of Dow component Procter & Gamble. The first round of analysts upgrades/downgrades likely to provide the first catalysts of the
day.
06:09 ET: [BRIEFING.COM] S&P futures trading at 1252.50, 2.5 points below fair value, Nasdaq 100 futures trading at 1862, 4.0 points
below fair value. The 30-year bond is up 5 ticks at 5.775%. The dollar is firmer against the euro, but weaker against the yen.
06:09 ET: FTSE -0.61%, DAX closed%: [BRIEFING.COM] European markets all closed for May Day holiday, though the UK’s
FTSE 100 Index open for business. UK stocks under decent pressure this morning following yesterday’s late-day reversal in the Dow.
Banking stocks hit the hardest on the back of dampened global rate cut expectations. US contagion still evident however, as the CIPS
manufacturing index fell to levels not seen since February of 1999.
06:08 ET Nikkei +3.52%, Hang Seng closed%: [BRIEFING.COM] Asian stocks sharply higher with Japan back from holiday. Heavy
foreign buying interest, record approval ratings for new PM Koizumi and solid earnings all help to push the Nikkei up over 3.5% on the
session. The Nikkei closed at its highest level since December 18. Most other Asian markets, including Hong Kong, Singapore, South
Korea, the Philippines and Thailand were all closed for holiday.
Close Dow -75.08 at 10734.97, Nasdaq +40.69 at 2116.37, S&P -3.58 at 1249.47: [BRIEFING.COM] The markets closed mixed as
the Dow trended lower while the Nasdaq posted a decent gain. This makes for an interesting juxtaposition following last week's activity in
which the Dow managed decent gains against a modest loss for the Nasdaq. Early market activity was broadly positive behind economic
data which carried bullish implications. Personal Income and Consumption numbers for March were released and came in slightly stronger
than anticipated. Personal Income rose 0.5% which was stronger than consensus expectations for a 0.4% rise. Personal Consumption rose
0.3% which similarly outpaced the expectation for a 0.2% increase. The data are supportive of those who believe the consumer side of the
economy remains intact. Many economists have been suggesting that a strong consumer will be capable of spending the U.S. out of its recent
economic issues... The Chicago Purchasing Manager's Index (PMI) was also released this morning and came in stronger than the prior
month's 19-year low. While not an overwhelmingly bullish report the improvement is supportive of those who contend the economy has seen
its worst days in the intermediate term. Chicago PMI represents manufacturing activity and is sometimes used as a rough precursor of the
National Association of Purchasing Manager's (NAPM) Index due out tomorrow. For a complete list of what to expect on the economic
front please visit Briefing.com's Economic Calendar... The question for investors now is whether the current rally represents a new bull
market or whether the bear is in temporary hibernation. Briefing.com contends this is the time to begin identifying investment candidates for
the longer term. With the Fed's aggressive easing bias and the recent airing of negativity on the corporate earnings front, the stage is already
set for a continuation of the current uptrend the markets are currently experiencing. DJTA -1.2%... DJUA +0.1%... SOX +3.1%... XOI
-0.6%... BTK +4.3%... Nasdaq 100 +2.5%... S&P Midcap 400 +0.7%... Russell 2000 +0.3%... NYSE Adv/Dec 1689/1363... Nasdaq
Adv/Dec 2418/1447. |
