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10:26 ET Mylan Labs (MYL) 27.06 +0.54 (+2%): On conference call, company reiterates 2002 guidance of 12% growth in net
revenues and EPS of $1.30-$1.33; plans Paclitaxel launch in July.
10:22 ET Juniper Networks (JNPR) 55.85 -1.23: In its pre-open note upgrading Cisco, Morgan Stanley said that Cisco beat out Juniper
for what Morgan believes was a $100-200 mln, multi-year contract with Global Crossing (GX). The note does mention, however, that
Juniper remains a supplier to GX.
10:19 ET Small-Cap Movers : BackWeb (BWEB 2.76 +0.52, +23%) surges on news that company has signed agreement to provide its
content delivery and notification technology for IBM WebSphere customers... Next Level (NXTV 8.67 +1.38, +19%) enters agreement
with Motorola intended to facilitate the deployment of NXTV's Level3 Unified Access Platform worldwide... Impressive runs in Metricom
(MCOM 5.35 +0.58, +12%) and EntreMed (ENMD 21.75 +2.05, +10%); catalysts uncertain.
10:09 ET Nasdaq Composite : -- Technical -- Index surged off the open but is currently back tracking after failing to take out yesterday's
high at 2215. Intraday, without a move back above 2200 it will remain vulnerable back to the 2168 support that held on Monday.
10:04 ET Transkaryotic (TKTX) 23.60 +2.61 (+12.4%): Impressive advance in response to SG Cowen pre-market comments; firm
adjusts model to reflect more bullish outlook on pricing and competitive prospects of Replagal in Fabry disease; positive physician bias
towards Replagal data suggests drug could take substantial market share in Europe and rest of world; with $10 in cash per share, and
modest market cap of $477 mln, company appears attractively priced
10:03 ET BEA Systems (BEAS) 34.28 +1.39 (+4.2%): -- Technical -- Reverses course after failing to take out resistance at 36.82.
Extent of the turnaround and breach of 32.75 damages the pattern of the push off the May 7 low raising the probability of a retest/breach of
this floor (32.50). Next supports are at 31.35 and 30.
09:55 ET Biopure Corp (BPUR) 28.16 +0.51 (+1.8%): Announces preliminary efficacy results from Phase III clinical trial showing that
company's oxygen therapeutic product Hemopure eliminated the need for red blood cell transfusion in patients undergoing elective
orthopedic surgery.
09:52 ET High Speed Access (HSAC) 1.65 +0.23 (+16.2%): Inks national ISP agreement with the Time Warner Cable unit of AOL
Time Warner. Time Warner Cable plans to begin rolling out HSAC following the completion of modifications to its cable systems needed to
accommodate multiple ISPs. HSAC is the third ISP to sign such an agreement.
09:49 ET Time Warner Tcom (TWTC) 41.45 -6.55 (-13.7%): Comes under selling pressure after company reported (last night) a
narrower-than-expected Q1 loss but cautioned that its growth rate may slow due to a softening economy and increasing customer
bankruptcies. Firm reiterated EBITDA and capex guidance for 2001.
09:45 ET CIENA Corp (CIEN) 59.40 +4.12 (+7.5%): -- Update -- Technical -- Gaps higher but currently taking a breather after
retesting yesterday's high (61.80). Continued posture above support at 57.75 (bottom of gap) leaves CIEN in position for another push.
Penetration of the early high exposes next resistances at 62.85 and 63.50.
09:42 ET Sector Watch : Tech sectors push firmly higher in early dealings led by networking, Internet, semiconductor, software and
computer-hardware. Losing groups include oil, oil service, natural gas, gold, drug and utility.
09:35 ET Cumulus Media (CMLS) 9.82 +0.57 (+6.1%): Goldman Sachs upgrades to MKT OUTPERFORM from Mkt Perform
following earnings report this morning; feels that stock has bottomed and looks at company as a turnaround story.
09:33 ET Gapping Up : Communications chip stocks race out the gate as a secondary play to Cisco upgrade: PMCS, BRCM, VTSS,
TQNT, AMCC. Networking stocks also riding the Cisco move: EXTR, RBAK, FDRY.
09:30 ET Internet Security Sys (ISSX) 52.57 +1.44 (+2.8%): Company and Nokia (NOK) announce that they have expanded their
existing partnership on the development of the industry's first enterprise-class intrusion detection appliance, RealSecure for Nokia.
SAP AG (SAP) 38.30 unch: First Union Sec initiates coverage with a BUY rating and price target of $45; says SAP has six to seven
thousand developers focused on improving SAP's application, and this depth enables SAP to compete effectively internationally and
provides clients with a sense of confidence when choosing SAP; beyond its dominant ERP software, SAP has highly competitive products
for B2B marketplaces, CRM, supply chain management, product lifecycle management and others.
J.D. Edwards (JDEC) 10.95 +0.15: First Union Sec initiates coverage with a MARKET PERFORM rating; says company has
expanded its focus into collaborative commerce, creating a larger market opportunity; while company has a significant opportunity to
differentiate itself, firm believes J.D. Edwards will continue to face challenges over the near term.
Cisco Systems (CSCO) 20.00 +0.75: -- Update -- Gruntal & Co downgrades to long-term MARKET PERFORMER from long-term
OUTPERFORMER due to firm's belief that, notwithstanding signs of stabilization in the marketplace, firm does not believe the shares
deserve a higher valuation and that likelihood of a rebound in business over the next four quarters remains low; other significant issues of
concern in the quarterly report include inventory balances, vendor financing, and the gross margin.
Whole Foods (WFMI) 51.00 +3.90: Merrill Lynch upgrades to near-term ACCUMULATE from near-term NEUTRAL, citing strong
visibility on comps and a stronger relative earnings story this year; comparable store sales were an outstanding 9.6% in recent quarter as
company gained share, and had a richer mix of faster growing immature stores in the comp base.
Fidelity Nat'l Fin (FNF) 24.18 +0.89: Lehman Brothers initiates coverage with a BUY rating and price target of $55; calls company the
most efficient, the largest, and the purest title insurer; firm has very positive long-term view, citing next refinance boom; firm's 2001 EPS
estimate is $3.05, which represents 52% growth over 2000.
09:30 -- 10:00 ET (Updated throughout the hour)******
Genzyme (GENZ) 105.31 +0.04: Announces plans to acquire privately held Wyntek Diagnostics for $65 million in cash; acquisition will
significantly expand Genzyme's position within the high growth market for diagnostic testing products used at the point of care; see press
release.
United Rentals (URI) 21.60 -0.50: Goldman Sachs initiates coverage on equipment-rental company with a TRADING BUY rating and
price target of $30; forecasts that URI should generate 15% EPS growth through rising rental penetration, modest market-share gains and
operating leverage; company should have the cash flow to pay down debt in most economic climates.
BJ's Wholesale (BJ) 44.20 +0.13: Lehman Brothers initiates coverage with a BUY rating and price target of $55; believes BJ's can
continue to generate a minimum 17% EPS growth through a combination of club expansion, membership increases and sales productivity.
Juniper Networks (JNPR) 58.99 +1.91: Buckingham Research initiates coverage with an ACCUMULATE and a 12-month target of
$78; cites JNPR's leadership in IP router technology and partnerships, ability to win greater telco budget allocations, major new
applications, and greater sales potential as service providers continue to redesign their networks to add "intelligence" provided by IP
routers.
10:30 ET Dow -94, Nasdaq +7, S&P -6.69: [BRIEFING.COM] Both the Dow and the Nasdaq have headed sharply lower over the last
half hour. With the realization that the short sellers have for the most part covered their positions, traders are selling on the gap higher at the
open on the Cisco upgrade. The stock is up 33% over the past week meaning the sentiment of a positive qtr has already been priced in
heading into its release after the close today. Techs are selling off after the gap up....CLECs are weak today on Time Warner Tcom's
(TWTC -11%) caution that its growth rate may slow due to a softening economy and increasing customer bankruptcies. Another
CLEC, Choice One (CWON -15%), down sharply after reporting last night....Financials, retail and wireless stocks are coming under recent
pressure. DJUA -1.4%... SOX +1.0%... Nasdaq 100 +0.6%... NYSE Adv/Dec 1169/1334... Nasdaq Adv/Dec 1610/1418.
10:00 ET Dow -22, Nasdaq +23, S&P +0.52: [BRIEFING.COM] Tech sectors continue to lead Nasdaq higher led by networking,
Internet, semiconductor, software and computer-hardware. Drug stocks are mixed in the early going. A couple of stocks to watch will
be Biogen (BGEN 55.95 -0.29) and Serono (SRA 23.58 +0.67). Merrill Lynch says Serono's MS drug results exceeded firm's
expectations which is a negative for Biogen's hugely successful Avonex, but now its orphan drug status is in doubt. Both companies are
presenting at a conference today....Seeing unusual move in grocery sector as Whole Foods (WFMI 51.11 +4.01) is up sharply after
reporting results and expecting strong same store comps for a grocery chain. Losing groups include oil, oil service, natural gas, gold, drug
and utility. NYSE Adv/Dec 1270/1025... Nasdaq Adv/Dec 1759/1045.
09:45 ET Dow -11, Nasdaq +33, S&P +2.46: [BRIEFING.COM] The Nasdaq has opened strongly this morning, while the Dow opens
in negative territory. Techs are clearly the leaders so far. The combination of the Cisco (CSCO 20.48 +1.23) upgrade by Morgan Stanley
and Ciena's (CIEN 61 +5.72) deal with TyCom (TCM 16.48 +0.22) has networking sector booming out of the gate. Other strong
performers include RBAK +8%, EXTR +8%, AVNX +7%....Banks and brokerages are weak in the early going. Morgan Stanley
downgraded American Express (AXP 42.18 -1.05) to Neutral from Outperform citing unfavorable risk/reward dynamics. AXP is the worst
performer on the Dow....Cyclicals under pressure including machinery, oil services and integrated oil.
09:10 ET: [BRIEFING.COM] Cash market remains poised for a strong opening as as the S&P futures, at 1270, are 2 points above fair
value while the Nasdaq 100 futures, at 1945, are 41 points above fair value....Ciena (CIEN 55.28) is up over $7 in the pre-market after
announcing a deal with TyCom (TCM 16.26) to deploy Ciena's intelligent optical switching and transport systems in its Global Network. The
2-yr agreement includes initial orders valued at more than $150 mln...Dell Computer (DELL 25.91) will be worth watching after the
company said after the bell it expects Q1 to meet guidance, but will cut 3,000-4,000 positions over the next two qtrs. UBS Warburg is
cutting estimates as it does not believe we are at the bottom of this intense price competition....BEA Systems (BEAS 32.89) is another
pre-market leader, up over $3, on positive analyst comments....Overnight, European stocks modestly lower on concerns surrounding
eurozone growth while Asian stocks were lower on news that reforms for Japanese banks will start later than expected. |
